The Hyundai return program that was originally scheduled to expire at the end of December has been extended by the company through 2010 and can especially help those consumers with bad credit
One more year
At Auto Net Financial, we specialize in helping consumers with bad credit reestablish their auto credit and raise their FICO scores with a bad credit auto loan through one of our participating dealers. Due to financial considerations, a majority of the vehicles purchased with one of these loans are used cars.
There are, however, a number of new cars that we feel also qualify for many of these bad credit car loans. Among the manufacturers who offer these types of cars would be Korean manufacturer Hyundai. Many of the models from Hyundai qualify for inclusion because of two important factors: they are affordable (aside from the pricier Genesis and SUVs), and they all come with a long and comprehensive new car warranty.
That’s why we’re especially pleased to see that Hyundai has decided to continue its assurance program – which gives bad credit buyers, in particular, peace of mind in deciding whether or not they can take the chance on financing a new car in the current economic climate.
The program
In January of 2009, Hyundai was among a group of manufacturers that came out with “assurance” programs that were designed to protect consumers from “certain life-altering circumstances” such as job loss or medical issues that might result in their inability to make their car payments.
The other manufacturers terminated their programs before the fall of 2009. But Hyundai, which had grabbed additional market share in the first half of the year, extended its program through the end of the year – all the while stating that market conditions would determine whether or not it would continue with Assurance into 2010.
That question was answered last week in a press release that contained the following statement: Hyundai will extend the vehicle return option through 2010.
“Hyundai Assurance represents our complete commitment to our customers, with job-loss vehicle return coverage, five years of roadside assistance, and our industry-leading 10-year warranty,” said John Krafcik, president and CEO, Hyundai Motor America. “Assurance shows that we’re doing things a little bit differently at Hyundai, and this is making a difference in our business results.”
Plan specifics
This is how the assurance program works: If you finance or lease a new Hyundai vehicle through any lender and experience one of 6 covered events, including job loss, within 12 months of purchase, you have the option to return your Hyundai and walk away from up to $7,500 of negative equity with no impact on your credit score. This coverage comes at no charge to the customer and you are qualified regardless of your age, health, employment history or credit score.
Covered events
The 12-month policy covers the following six qualifying events:
1. Involuntary Unemployment
2. Physical Disability
3. Loss of Driver’s License due to Medical Impairment
4. International Employment Transfer
5. Self-Employed Personal Bankruptcy
6. Accidental Death
Employment issues covered under the plan include termination (not resignation), job loss due to a move by the employer and co-signed loans if the primary borrower suffers a job loss. International employment transfers are also covered as a transfer to any country other than the United States is considered “international.”
Examples of disability events that are covered include work loss due to physical disability, while the medical impairment example used is loss of vision due to pre-existing diabetes.
Credit impact
According to Hyundai, if you follow the correct procedures outlined in the program (call or email the Assurance Administrator, supply the necessary documents, have your vehicle appraised at a Hyundai dealer), the return of a vehicle resulting from a paid (and approved) benefit is considered an early pay-out of the loan or lease and is not considered a voluntary repossession and will not impact your credit rating or credit score “in any way”, according to Hyundai.
The bottom line
Here at Auto Net Financial, we’re glad to see that Hyundai is extending their Assurance Plan – one of the most innovative programs for bad credit consumers that we’ve seen in a long time. The extension means that credit challenged customers have another year in which they can take advantage of the peace of mind this program offers.
For more information on bad credit car loans and the bad credit auto loan process, please visit our web site at www.autonetfinancial.com.
