Hyundai Assurance Program

[XDCX]

In an effort to address one of the major reasons why customers are not purchasing new vehicles, Hyundai has launched the "Hyundai Assurance Program."

The program provides up to $7,500 of assistance if a customer needs to return their new car withing the first year due to a "life-changing event." Hyundai defines a "life-changing event" as a job loss, bankruptcy, physical disability, loss of license due to medical impairment, or death.

While I don't know if this incentive will have a major impact on sales, it can't hurt. It's a great way to help overcome one of the major hurdles that are impacting sales.

Here's a link to the news report: http://blogs.cars.com/kickingtires/2009/01/new-hyundai-inc.html

[CL Pgh]

Kudos to Hyundai on a new twist… saw the advertisements yesterday. ANYTHING that creates traffic is a good thing… what we do with that traffic is up to us!

I’ve already had a meeting with my people on what this program is and more importantly, what it isn’t (remember, “what we do with that traffic is up to us”). Here’s a Hyundai link for this program: http://hyundaiassurance.walkawayusa.com/pdfs/HyundaiAssuranceLeaflet.pdf
This program is easy enough to shoot holes in when a customer asks’ about it. (… and that’s not a knock on Hyundai!!!)

[dafuzz1956]

Not to knock HYUNDAI either, but did they come up with idea at 3:00 am on 1/1/09 at the end of their New Years party. Just so ya know i would have said that about any mfgr with that idea.

[SHACOS]

I love this idea. Why can Detroit think of this? Hyundai is moving up in my book.

[XDCX]

I love this idea. Why can Detroit think of this? Hyundai is moving up in my book.

I think it's a great idea too. :)

If there are two forces that are limiting car sales right now, the first is credit and the second is fear. Hyundai's program does a great job of addressing the fear component.

CL Pgh makes an excellent point that the program has several holes in it, but how many customers will study the program that carefully? How many competitive dealerships will train their sales staffs?

My belief is that most customers make their purchase decisions based on emotion and then use logic/facts to support the initial decision. This program will make it easier for a Hyundai customer to support/defend their purchase decision.

If nothing else, I bet it's a great closing tool when you've got a customer that's too scared about the future to make a decision.

[XDCX]

I just did a quick Google News Search for "dealership" and the Hyundai Assurance Program was one of the top listings.

In fact, there were over 240 different media links that featured the Hyundai's program - I'd say that's a P.R. Homerun. :)

[XDCX]

Hyundai is moving up in my book.

I just watched a Motor Week review of the Hyundai Genesis on Tivo and I thought of this quote.

Based on the review I just watched, that's an awesome car.

Add to that all of the great free advertising that Hyundai scored with their Assurance Program and I'd have to say they've been making some good moves.

[SHACOS]

The V8 is a sweet car! I'm thinking Hyundai has a long way away to pull customer's away from BMW. however.

[XDCX]

The V8 is a sweet car! I'm thinking Hyundai has a long way away to pull customer's away from BMW. however.

That's true, no matter how great of a vehicle they might build it's still going to be thought of as a Hyundai.

I remember a few years ago when Volkswagen tried to enter the market for $60K+ vehicles. They developed a great car that ultimately failed - people were not willing to pay that much money to be driving a VW.

[okcarl]

This program is available to any dealership with any franchise. The product is offered by EFG out of Texas thru their walkaway division. I have seen the pitch and it is intersting to say the least. We are studying bringing this in and advertising the program locally at our stores thru the paper and banners etc.
We are keeping an eye on the Hyundai promotion to see how it pans out.

[XDCX]

This program is available to any dealership with any franchise. The product is offered by EFG out of Texas thru their walkaway division. I have seen the pitch and it is intersting to say the least. We are studying bringing this in and advertising the program locally at our stores thru the paper and banners etc.
We are keeping an eye on the Hyundai promotion to see how it pans out.

Thanks for the information.

I've been impressed with how much good PR Hyundai has been able to generate with their incentive. I've noticed that a lot of local newspapers and TV stations picked-up the story and featured it on their websites.

It would be interesting to learn what the premiums are.

[XDCX]

Hyundai is one of only two OEMs to report a sales increase for January - up 14% over last year.

Their management team cited the Hyundai Assurance Program as the main reason for the positive sales results.

Hyundai launched a simple program that addressed one of the publics primary concerns and supported it with good PR and advertising.

Great job, Hyundai, you deserve your sales success. :)

Here's a link to the news report: http://www.google.com/hostednews/ap/article/ALeqM5gsz39lpYrNG7OiKs3FJt6jhV6NEwD964ASUG1

[Snowrider]

Hyundai partnered with a company that I looked at 2 years ago. The company's named Walkaway. I was going to sign up to sell their product as a standalone offering, but MI treats it as insurance and therefore wants to regulate it.

Basically, their product is Gap coverage for humans. If a life situation happens, (they're listed on the website), you can return the car and they'll waive up to $7500 of negative equity.

The only problem is, if you return a Hyundai within a year it's doubtful that $7500 will cover your negative equity. :eek:

Still and all, kudos to Hyundai for a unique offering and a very good marketing strategy. If all manufacturers would do a little "out of the box" thinking, maybe we wouldn't be offering them tax dollars by the dump truck load full to keep them operating.:cool:

[XDCX]

The only problem is, if you return a Hyundai within a year it's doubtful that $7500 will cover your negative equity. :eek:


That's a valid point, but there's no question that the program's working. :)

I just read a news report which indicated that the Hyundai Assurance Program was one of the top three reasons people went shopping for a Hyundai. That's impressive when you think that the program has only been out for a few weeks and it's so difficult to cut through the marketing "clutter."

The news report speculated that other OEMs will follow with similar programs - it will be interesting to see what the next innovative idea is.

Here's a link to the news report: http://www.cleveland.com/business/plaindealer/index.ssf?/base/business-11/123373987261080.xml&coll=2

[SHACOS]

Some marketing manager out there at Hyundai deserves a TARP bonus. :)

[XDCX]

Some marketing manager out there at Hyundai deserves a TARP bonus. :)

I totally agree. :)

In fact, I'm thinking about sending a Blast FAX to the Hyundai dealers asking them about the Assurance Program from a dealer point of view.

It would be interesting to know if their used car sales increased as a result of this program. You'd have to think there were some people who were attracted to this offer that ended up driving home in a used car because of a lower payment.