Hyundai’s new Assurance program is generating buzz among those in the auto industry. The concept of being able to return your car without penalty if you lose your income seems to be taking the fear out of taking out a car loan now.
It’s been reported that consumers aren’t buying cars right now for fear they will lose their jobs. And since a car is the second largest purchase, taking on that much financial commitment is definitely scary.
Hyundai saw a sales increase of 14% last month compared to January last year. Across the board, car sales were down 37% for the month. The automaker introduced the incentive program at the start of January. One can guess that the new incentive is helping stimulate sales for Hyundai.
The new Hyundai Genesis and the Assurance program is drawing potential buyers into Hyundai showrooms to find out more.
"You can’t just peg it to the program, but it certainly has had an impact," said Jeff Schuster, executive director of forecasting for J.D. Power and Associates.
Experts say to expect other automakers to copy Hyundai’s incentive program very soon and offer similar incentives to help boost car sales, CNN Money reports.
Hyundai is already looking at ways to expand on the basic premise of the Assurance program, said David Zuchowski, vice president for sales at Hyundai Motor America.
"Negative equity protection, that’s something we’re looking at," Zuchowski said.
This would allow Hyundai buyers to trade in their car for another one at any time and, if the car they’re trading in is worth less than the remaining balance on the loan, Hyundai would cover that difference.
It seems Hyundai has found a winning incentive to get consumers to buy its cars during this economic crisis. If other manufacturers offered the same incentive, would you buy a car from their brand? Email us at firstname.lastname@example.org and let us know your thoughts.