New Hyundai Warranty Program Is A Winner

It has been ten years since Hyundai first rolled out their 10 year, 100,000 mile warranty covering the powertrain, a step that allowed the South Korean automaker to raise the bar for all cars sold in the US. Until then, no car manufacturer offered such a generous warranty, a move Hyundai made to help convince consumers that the automaker’s quality problems were a thing of the past.

Indeed, current quality surveys from J.D. Power & Associates as well as other industry benchmarking groups has put Hyundai vehicles at or near the top in quality, something that consumers are now beginning to appreciate. That move has allowed Hyundai and its sister company, Kia, to grab additional market share pushing the combined Hyundai Kia Automotive Group into the fifth position among the world’s largest automobile manufacturers.

Hyundai isn’t resting on its laurels and, in celebration of the tenth anniversary of its groundbreaking extended warranty, the automaker has rolled out the Hyundai Assurance Program which is a complimentary vehicle return program for the first year on every new Hyundai that is financed or leased for owners who experience an involuntary loss of income within 12 months of the purchase date.

“We understand consumers’ hesitance to commit to large purchases in today’s economic environment,” said John Krafcik, acting president and CEO, Hyundai Motor America. “Ten years ago, Hyundai’s industry-leading warranty provided peace of mind to consumers about Hyundai’s quality and reliability. Today we’re extending that peace of mind to cover consumers’ employment status and personal finances.”

This first of a kind program will protect consumers who have made at least two loan or lease payments and are affected by one of the following life scenarios:

• Involuntary unemployment
• Physical disability
• Loss of driver’s license due to medical impairment
• International employment transfer
• Self-employed personal bankruptcy
• Accidental death

Consumers must be current on all payments in order to participate in the program which covers negative equity up to $7500. Once the Hyundai administrator approves the return and the consumer pays any outstanding balance, then the car can be returned to the dealer without any additional financial obligation or a hit to his credit record. At that point the dealer will be able to resell the car.

So will this program help Hyundai win new customers? I believe so. With the credit markets being tight and consumers showing uncertainty about making any large purchase, buying a Hyundai can remove or at least limit some of that risk, resulting in a sales increase for the Korean manufacturer.

I don’t expect other car companies to follow suit, but it is an intriguing offer nonetheless. In a tight economy thinking outside of the box matters so it looks like Hyundai has a winning program on their hands.

Source: Hyundai Motor America

5 Steps to Buying Your Next Car

Now Is The Time To Buy A New Car

In case you hadn’t realized it yet, we’re currently in the midst of one of the worst downturns the auto industry has seen in decades. Year to date, sales are down by 15%, but that figure is much higher for some automakers, including Chrysler where sales have dropped by more than 25% this year.

Bad news for the auto industry coupled with the calendar year coming to a close means one thing: passenger vehicle discounts have never been better, giving you an excellent chance to buy a new car for a lot less money.

Keep reading and we’ll take a look at five steps to help you save money on your new car:

1. Do Your Own Research – You may be fond of a particular make/model, but does that car live up to its hype? For an objective look at what experts say about the vehicle you like, make sure you acquaint yourself with reviews from The Truth About Cars, Consumer Reports, and other no holds barred publications.

2. Shop Around - Through the end of the year, the deals being offered will include some of the best seen in years, but shop around for the biggest savings. Take a look at what is being offered – low-cost financing, cash back, or a special lease deal – weigh each plan by learning which one is best for you. Also ask about military discounts, new grad rebates, and other offers available on top of already great savings.

3. Arrange Your Own Financing – If you can pay cash for a new car, you’re in the best position when it comes time to negotiate. You’ll determine the final price you pay for your car while reaping the benefits of all of the discounts being offered to you. But, if you’re like the majority of drivers, you cannot afford to pay cash. Instead, you can arrange your own financing before you set foot in a dealer’s showroom. Your rate may not be as low as what Ford Credit or Mitsubishi Motors Credit has to offer, but you can take manufacturer cash discounts instead and still come out ahead.

4. Compare Warranties - These days, all cars offer some sort of warranty on various parts, maintenance, powertrain, etc. The better the coverage offered, the less you’ll have to pay out of pocket down the road should something happen to your car. Consider buying a car that comes with a comprehensive warranty, forgoing the dealer warranty plan that can set you back an additional $500 to $1500 or more.

5. Contact Your Insurer – Before you settle on a particular car, why not call your auto insurer to get a quote on insurance coverage for the coming year? The results may shock you – that little Fit from Honda may cost you more money to insure than the Ford Focus thanks to crash worthiness tests conducted by the Insurance Institute for Highway Safety (IIHS), an industry advocacy group that sees how well cars hold up in a crash.

By doing your own research and taking your time comparing the deals being offered, you stand to save thousands of dollars off of the purchase price of a new car. Great deals won’t be around for a long time and when the market begins to recover, they’ll soon become as rare as hen’s teeth.