Hyundai guarantees the trade-in value of its new cars
When the going gets tough for you and me, Hyundai is the carmaker that seems to find a way to make life easier.
It did it at the bottom of the recession two years ago when it guaranteed to make an owner's auto loan payments on a new Hyundai if the owner was laid off.
Hyundai is back at it again.
It recently announced it was establishing the all-new Hyundai Assurance Trade-In Value Guarantee.
Usually the longer a program's title, the more complicated it is and the less it actually achieves. Not so with this one.
In a nutshell, here's what it does:
- Covers any 2011 Hyundai purchased on or after May 1, 2011.
- Sets a guaranteed trade-in value for that vehicle for 24 to 48 months after it was bought.
- Protects buyers from unexpected depreciation regardless of the reason.
Here are the key mouse-print details:
- The guaranteed trade-in values will be determined using the Automotive Leasing Guide's projected values at the time of purchase.
- At the time of trade-in, the owner must be able to show proof of vehicle maintenance at the recommended intervals through authorized Hyundai dealerships.
- You must replace your old Hyundai with a new Hyundai and pay for it using a new auto loan from Hyundai Motor Finance.
The upside for owners is that if they trade-in their vehicle during the qualifying 24- to 48-month period and its actual value is more than the guaranteed value, they will get credited for the higher assessed value.
If the guaranteed value is higher than the assessed value at trade-in time, they will be credited for the guaranteed value.
By putting a floor under the trade-in value of its cars, Hyundai could potentially reduce the number of buyers who are upside down on their auto loans, and owe more than their cars are worth, during the third- and fourth-year of ownership.