Hyundai Assurance Program

January 8, 2009

Like most of you, I’ve been hearing a lot lately about the new Assurance program from Hyundai, the Korean car-maker. It’s too early in the game for me to review it, but I can give you details. Honestly, the deal sounds like a good one, and in this economy, I give Kudos to Hyundai for offering an “out” if you lose your job this year.

It works like this: Purchase a new Hyundai vehicle at any Hyundai dealership (used car purchases are not eligible for this program). If, during the first 12 months that you own the car, you lose your job, become disabled, lose your driver’s license due to medical impairment, move to another country for work, file for self-employed personal bankruptcy, or if there is an accidental death, you can return the car without any further financial obligation or negative impact to your credit.

The program is complimentary for the first 12 months when you buy a new Hyundai. You can purchase the program for an extended period of time. It is available to all, regardless of age, health, or employment history.

So let’s say you purchase the car and unexpectedly are let go from your job six months later. Here’s what you do:

• File a benefit request with Hyundai Assurance
• They will determine the value of your car based on the average of your dealer’s appraisal and the values from leading industry guides (I’m guessing Kelley Blue Book is one).
• If you have made at least two payments on your loan or lease, you would pay for the amount above the Hyundai Assurance benefit and any car payments that were due prior to you filing for the benefit.
• After your payment (if any) and upon benefit approval, you return the car to the Dealership where you made the purchase.
• They will cover up to $7,500 in negative equity.
• That’s it! You walk away obligation-free.

Keep in mind, of course, that if you actually still need a car, this program won’t work for you.  However, this is a great alternative to risking your car being repossessed and your credit being ruined.

After a phone call to the Assurance Administrator, I found out that you can get financing anywhere, not just with Hyundai, to be eligible for this program. Which is great; my first thought when I heard this was that you had to get Hyundai financing and that this was how they roped you into possibly a higher interest rate than you could get elsewhere.

All in all, the program sounds pretty good to me. If any of you have signed up for this program, please let me know what your experience was. Hopefully none of you will have to use it, but it’s really just good peace of mind. And these days, isn’t that what we all want?

Get more information about the Hyundai Assurance Program here.

Remember that you can purchase a Hyundai and get low-cost financing at MCCU. And don’t forget to ask about Auto Expert, our no-cost auto buying service!

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

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