1. Buy a Hundai 2. Lose your Job 3. Return your Car
I must admit I made confused blinky eyes at the TV when I saw this advertised on TV. Hopefully someone here can find the actual specifics on the Hundai website (I couldn't), how on earth does this help? If someone is on the fence to buy a car or not, I'm not sure this would help (or that they'd go Hundai). Isn't this just going to possibly bump up Hundai's short term numbers, and then put a glut of used Hundais on the market?
The catch is it "covers up to $7500 in negative equity" - so you better not have it long enough to depreciate more than ... let's see, doing math in head ... (sum of your payments) - (book value of car) has to... not be less than -7500? Right?
Oh, and you had to have made at least two payments before you "file a benefit request."
I'm sure someone's covered this better and more thoroughly somewhere else on the Interweb.
EDIT 2: Hyundai's cheapest car is a 2009 Accent with no options - $9970 - it's NEXT cheapest model, the Elantra, starts at $14120 - Click Here (hyundaiusa.com) - so.....yeah, not so much of a safety net, really.
Even reading it I'm not sure if I understand it. But let's list the fine print anyway.
1. You can only apply if one of the following life-altering circumstances occurs. (a) Involuntary unemployment. Notice that word involuntary. You can't quit your job and say you don't have enough money. I'm sure Hyundai will investigate the circumstances with your bosses to make sure. (b) Physical disability. (c) Loss of driver's license due to medical impairment. Now, if you lose it from DUIs or speeding tickets, that's another matter. (d) International employment transfer. That's a weird one. (e) Self-employed personal bankruptcy. (f) Accidental death. What these all have in common is that you don't really have control over whether they happen. Yes, you could probably do a crappy job and get fired, but baring elaborate schemes you can't choose to have your driver's license taken away for medical reasons.
2. You have to have made at least two payments on time. Remember this only applies for the first year, so we're down to a 10 month window.
3. When you return the car, they will figure out its value and cover $7500 worth of negative equity. If the car has depreciated by more than that, you will be responsible to cover the difference.
Bleh, I can't spell. Though I did find the actual website. It was probably in some huge obvious ad instead of in a menu or something like that... Was there a forest BEHIND the trees?
I guess my question is more: Would this make you more likely to buy a Hyundai? I know that for myself, with the economic uncertainties, I'm not likely to buy a new car at all.
We've actually already talked about what we'd do if my car bites it (please hang in there car!) and buying a new car isn't even on the table. We'd just go to Aaron driving the F150 since his commute is so short. If we didn't have the truck we'd be looking at a used vehicle not a new one.
Not to mention I haven't even considered a Hyundai in that magical "What if I could have whatever I wanted" car dreaming.
How much does driving the car off the lot depreciate it anyway?