@ohgoodness: If you're able to get a loan to buy a house right now I doubt you will have any sort of employment issues any time soon.

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RandomHookup

January 5, 2009 7:23 PM

@rainmkr: Just because you have a great credit rating doesn't mean you won't lose your job tomorrow. Maybe you mean the person probably has a bunch of cash in the bank, but the two aren't related.

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thrid001

January 5, 2009 8:10 PM

@RandomHookup: Exactly, George W Bush has a good paying job today, and in a little over 2 weeks he will be unemployed. But more seriously, if you have perfect credit and money in a 401k, and your company through no fault of yours goes under, maybe you can keep the old beater just in case.

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Traveshamockery

January 5, 2009 6:08 PM

@ohgoodness: Or an economic stimulus plan.

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Gearhead_42 - Nibbles ate my garage!

January 5, 2009 6:01 PM

So, Consumerist still in tight with the jalopnik boys, eh? Cool, and I welcome our new CU overlords.. (wait, I read somewhere that joke is passe... I apologize)

2 replies

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Ash78 ain't got time to bleed

@Gearhead_42: Jalopnik and Consumer Reports are mortal enemies. This has been written since the beginning of time.

/awaits forced reeducation

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Doctor Who?

January 5, 2009 6:34 PM

@The Name's Ash78, Housewares: Good thing that this is Consumerist and not Consumer Reports then, isn't it?

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Ash78 ain't got time to bleed

January 5, 2009 6:37 PM

@Doctor Who?: Well, for now, anyway... ;)

Hopefully they'll leave things alone.

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Gearhead_42 - Nibbles ate my garage!

January 5, 2009 6:42 PM

@The Name's Ash78, Housewares: It's like seeing twins, separated at birth, reunited after one has been raised by Jesse Helms, the other by Jesse Ventura...

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B

January 5, 2009 6:01 PM

Judging from what it says on the website, it looks like a really good deal. It covers up to $7,500 of negative equity, so that's the difference between the amount owed on the car and the trade-in value, and it's only good for the first year. It does say additional restrictions apply, though, I'm really curious about that.
Still, once the Genesis coupe goes on sale, I'm going to seriously consider getting one.

1 replies

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Geekybiker

January 6, 2009 6:25 PM

@B:
$7500 of negative equity? Sounds like a plan if you heard that layoffs are around the corner and are upside-down on your current car....

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cynical_bastard

January 5, 2009 6:02 PM

Kudos to Hyundai if this is on the up and up!

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cgarison

This is a crock of crap the size of Chrysler's $2.99 gas campaign.

I take my paid for, POS Mercury that is in good mechanical condition but has a lot of miles and 6 years of wear on the shiny parts and trade it for a Hyundai Genesis. Next month, I lose my job so I turn in my Hyundai and they forgive me of my debt. WOW! Way to go! No car payment! Yeah!

Except!

Now I have to go out and purchase some $2K junker with a questionable past and a quarter million miles to get me to and from job interviews. This means that I have lost money in the whole deal and Hyundai wins big because they save themselves the cost of a reposition and the recovery of legal fees associated with the repo. The sad part is that my Mercury was better than this junker and I had the money in the bank which is crucial to surviving a layoff.

Sounds to me like Hyundai has come up with the perfect con. I hope Americans are not chumps and fall for this deal.

6 replies

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Blueskylaw

January 6, 2009 3:44 AM

.

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Blueskylaw

January 6, 2009 3:44 AM

@cgarison:

Good points. Don't forget that most people who buy a new car are not expecting to lose their jobs within a year. That's why its limited to the first year.

Come on people, use your heads. The big corporations are only looking out for their best interests, they would not be offering this if it did not either save or make them money. And you can take that to the bank!

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balthisar

January 5, 2009 8:57 PM

@cgarison: Why trade in a perfectly good Mercury? I'm not suggesting you don't buy another car if you want one, but it's always good to have a second car around. All you have to pay is registration and PL/PD.

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panzerschreck1

January 5, 2009 6:17 PM

@cgarison: the problem with this is that not all americans are in your same circumstances.

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djsyndrome

January 5, 2009 6:13 PM

@cgarison: You \"lost money\" the moment you traded in your car and drove the Hyundai off the lot.

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cynical_bastard

January 5, 2009 6:17 PM

@djsyndrome: i like my cars pre-depreciated...

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dialing_wand

January 5, 2009 7:30 PM

@cynical_bastard: Exactly. Let someone else pay to beta test it.

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plyhard13

I actually did a double take when I saw the commercial last night. For the first time ever, I hit the rewind button for a commercial. Like said above, if this deal is on the up and up, serious congrats to Hyundai.

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nffcnnr

January 5, 2009 6:12 PM

i saw these ads running constantly over the weekend during football games and thought that it was notable that they say \"if you lose your income.\" Income, not job.
i would imagine that they have a very broad interpretation about what they consider \"income,\" and strict standards for approving this benefit.
i would love to see the fine print on this program, but it says that i must \"...see participating dealer or program certificate for complete coverage details.\"
Maybe i'm just cynical.

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Ash78 ain't got time to bleed

January 5, 2009 6:16 PM

Sounds like a pretty good plan. More details at Business Week: [www.businessweek.com]

You have a year in which to return the car, but you have to have made at least two payments. So basically you have a 10-month window during which they'll take the car back and refund you the deprectiation (up to $7,500)...so it's a nice little insurance policy, but probably has some really, really fine print.

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chrisjames

January 5, 2009 6:16 PM

Is this free, or is it the payment protection service (fee) that sellers have been using for a long time? Either way, it may not be so great.

Every finance deal I've seen came with this offer; mostly to cancel out that sweet 0% financing they just gave me. All of them required a monthly fee, and that fee was a percentage of the remaining balance with no maximum.

I just got a brochure on it for my wife's new Macy's card, and the requirements are horrendous. You have to wait three months after losing your job to cancel the debt, during which you must continue making payments and you can't get a new job. Yeah right.

I expect the rules for this will be just as labyrinthine and unreasonable, especially once you get to the actual paperwork. This is probably nowhere near as great as it sounds.

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TheSpatulaOfLove

January 5, 2009 6:17 PM

This will end in tears...

I see this as being rife with flaws that will allow for abuse. Ever see what people do to rental cars?

While I applaud Hyundai for out-of-the-box thinking, never underestimate the sleazy things the public can (and will) do.

1 replies

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stchoo

January 5, 2009 6:27 PM

@TheSpatulaOfLove:

Definitely, if there is a way for people to abuse this program they will.

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Oranges w/ Cheese hates what Christmas has become

January 5, 2009 6:24 PM

Just ensure, as with any business transaction, that you scour the fine print.

Ask questions and get answers before you sign anything.

But sounds like a really good idea if it is what they say it is.

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Anonymous

January 5, 2009 6:46 PM

Here is the info form a Hyundai dealer...

It is an insurance policy Hyundai is buying for its customers. It cost $0 to the customer or dealer. It allows you to back out of your loan obligation in the event you are involuntarily unemployed, lose your license due to illness, have an international job transfer lasting more than 24 months, are self-employed and file personal bankruptcy, and a few other instances. So ultimately, if you end up in a situation where you can’t afford your car note you can walk away. Yes that means you turn in the car. But you won’t ruin your credit with a repo or late payments. You get to just walk away. For some people that won’t be the best thing; obviously they will need a ride. But for some, walking away from the loan without any negative effects on your credit is a fantastic option - especially when it didn't cost you anything.

Coming from someone who works really really hard to run a car dealership as honest and straight forward as I can possible be, this is a very good thing for the customer.

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justbychance

January 5, 2009 6:55 PM

I saw commercials for this last night while watching football.

It's still amazing how Hyundai is able to run these kinds of promotions while the \"Big Three\" are running for handouts.

I've never considered a Hyundai but anything is possible.

1 replies

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mac-phisto

January 5, 2009 7:54 PM

@loogee: one reason they can get away with it is b/c they have an unfair advantage in the marketplace with KORUS FTA. they are able to import cars to the US without the same restrictions as japan, german, et al & still benefit from paying a lower wage & not having to expend money on capital here in the US.

that's also the main reason why they can build super-inexpensive autos.

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G_Money21

January 5, 2009 7:02 PM

If you are in Danger of losing your job, a new car purchase isnt something you should be considering anyway.

10 replies

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tmed

January 6, 2009 4:32 PM

@G_Money21: Cause no one ever needed a reliable car to get to work?

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G_Money21

January 6, 2009 1:37 AM

@G_Money21:

I don't want to come across as an elitist of any sort, but if you have a solid background and education and have an expertise in something, and KNOW you are in demand, then I would say you don't have anything to worry about.

Make yourself indispensable, where they promote you or lose you. That's the key.

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tmed

January 6, 2009 4:29 PM

@G_Money21:
If you didn't want to come off as an elitist of any sort, you probably should have avoided the comment.

So, G_ \"Elitist\" Money21, you are a fool if you think those people without work are nothing but uneducated, underexperienced, incompetents. Get over yourself.

You are never indispensible unless it is your money that makes the company run.

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Keavy_Rain

January 6, 2009 1:42 PM

@G_Money21: Been in the job market much lately?

Put out a \"Now Hiring\" sign and, within hours, you'll have a mile-long line and local newscrews out there looking for Simon, Paula, and Seacrest.

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varro

January 6, 2009 1:16 AM

@G_Money21: Unless you're a police officer who only pulls over/beats up/shoots black people, who *isn't* in danger of losing their job?

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cgarison

January 5, 2009 8:31 PM

@G_Money21: Last time I bought a car, I had a solid job. 2 months later, the facility I worked was up for Strategic Review and 4 months beyond that I was out on the streets. And th at was in 2004 when the economy was strong and I found a new job within hours of losing my old one with a substantial pay raise.

But, back to the point, A year is a long time for things to change. Business can take a 180 in the time span of a month. One day customers are knocking down a company's door, the next day the company can't beg a sale. Look at retail in the past year. Look at the automotive industry last year in May through the end of the year. Or look at information systems in 2001.

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thrid001

January 5, 2009 8:17 PM

@G_Money21: How do you know if you are in danger of losing your job? I had a very good, stable job until the Board of Directors made a decision to fire the FOUNDER of the company, and the new CEO axed any manger hired by the previous CEO. Of course that was 2 years ago, and the company had to liquidate with the new tool they brought in.

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plyhard13

January 5, 2009 8:17 PM

Not everyone knows they're in danger of losing their job. Haven't there been quite a few stories this past year about employees showing up for work only to find the doors locked and a sign on the door that says, \"Get Bent\"?

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Corporate-Shill

January 5, 2009 7:30 PM

@G_Money21:

Well Said

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Ben Popken

January 5, 2009 7:13 PM

@G_Money21: Best comment of the thread.

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godai

January 5, 2009 7:22 PM

@G_Money21: So in this economy no one should buy a new car?

2 replies

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blissfool

January 5, 2009 7:40 PM

@godai: but seriously. not everyone is in danger of losing their job.

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Sparkstalker

January 5, 2009 7:33 PM

@godai: Pretty much...unless you work for GM or Chrysler.

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I want my Pepsi Throwback back!

January 5, 2009 7:49 PM

I can see how this would end terribly, but this is a great thing for those who are in dire need of a car but are holding out because they aren't quite sure where the economy is going. In fact, I have a friend who would fare well with this plan. The only reason she has never bought a car is because she's never quite positive where she's going to be, but good lord she NEEDS a vehicle, asap. Go Hyundai, either way.

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oneandone

January 5, 2009 8:00 PM

For some reason, I picture this mostly being used by people who can't realistically assess their financial situation and instead of focusing on the basics (frugality, be ruthless about cutting costs, pay off debts, etc) try to get by with deals, trial periods, paying off one credit card with another, not paying the electric bill because 'they can't shut it off in the winter' and all kinds of other justifications for purchases & lifestyle they just can't afford.

I'm not saying it's a bad deal, but it does seem to lure those with unsteady jobs into thinking a new car purchase is totally reasonable. Or maybe I'm just thinking of certain specific people whose personal financial 'system' just burns me up.

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Anonymous

January 5, 2009 8:02 PM

If Hyundai was serious about their tagline \"We're in this together\" they wouldn't take the car back, they'd just let you have it. Also, corporations who market on the idea that people will lose their jobs are opportunistic bottom-feeders like the people who sold sub-prime mortgages

1 replies

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scootinger

January 6, 2009 1:04 AM

@HilaryAndromeda: What about companies that sell life insurance? Are they not \"opportunistic bottom-feeders\" because they are selling a service based on the idea that people will lose their lives? And the same thing for a whole host of other insurance (and related) services?

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proskills

January 5, 2009 11:12 PM

I bet a story about this not working will be on Consumerist by the end of the month. ;)

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tgrwillki

January 6, 2009 12:57 AM

I like to think of this as the \"Free Anunual Car Upgrade Program\"

Step 1 - Buy Car
Step 2 - Wait 10 Months
Step 3 - \"Lose Job\" Involuntarily
Step 4 - Turn in Car

Step 5 - Get the next model year's version of what you have.

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ElizabethD

January 6, 2009 1:20 AM

I love my Hyundai car so much. This company has come a really long way since the early tin cans they first imported to the U.S. I really encourage anyone looking for a new or used car to test-drive a few Hyundais at a dealership. No, I am not on the Hyundai payroll!

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Quilt

January 6, 2009 1:21 AM

Lady says, \"Hi, I lost my job and would like to return this vehicle? As you can see it's undamaged.\"

*man smashes out tail lite with crowbar*

\"You can't return that vehicle. It's damaged.\"

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th1nwhiteduke

January 6, 2009 2:33 AM

@G_Money21: Solid background, education, and expertise generally mean you aren't buying Hyundais. Not everyone has their shit together sadly.

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kyle4

January 6, 2009 3:52 AM

If only they did this before. My dad bought a Hyundai Elantra that got different mileage then the test car (so the gas is almost the same as our van), there have been other issues as well. He tried to exchange the vehicle but they wouldn't take it back. He got it to save fuel and unlike the test vehicle, it didn't.

This is a nice gesture though, good to see a company showing some empathy for people's finances throughout this recession.

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Blueskylaw

January 6, 2009 3:52 AM

If I have $500 in my bank account earning me $2.00 interest income per year, that is technically considered income and they can refuse to take the car back.

The wording in the contract leaves holes big enough to fly a plane through.

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Optimistic Prime

January 6, 2009 10:20 AM

Though in reality, most people who would be looking for a Hyundai, and I'm sure Kia will be doing this soon, are people with real hoopties. If you have a decent car, you probably aren't looking to get rid of it already. This is especially true in lower income families.

1 replies

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Optimistic Prime

January 6, 2009 10:21 AM

@Optimistic Prime: This was in response to cgarison above, wonky login goofed me up... :(

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Smorgasbord

January 6, 2009 10:32 PM

The key phrase on their web sight is \"Your benefits specialist will determine the value of your vehicle based on the AVERAGE of your DEALER'S APPRAISAL and the values from LEADING INDUSTRY GUIDES.\"

Can \"your dealer's appraisal\" be $0.00 if they don't think they can sell the car in a downward market? What \"leading industry guides\" will they be using? Can they pick and choose? What are \"leading industry guides\" anyway?

I got a lot more questions from their web sight than I did answers.

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stands2reason

January 12, 2009 9:01 PM

But the return would still reported on your credit report (at least that's what I'd expect). So it would still hurt your credit score.

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Anonymous

April 20, 2009 5:38 PM

Walking away from your loan is not inexpensive. All the costs and payments that you have made for the vehicle are lost and you don't have the vehicle any more. For example you trade in 6K retail car for 4K to the dealer (wholesale) and buy at 30K car at retail pay taxes, doc fees, tag, title and increased insurance, and in some states personal property tax you may have paid more than 7+K already