In early January, in order to stimulate car sales in a weak economy, Hyundai announced a novel program called Hyundai Assurance. According to the TV commercial :
“Right now, buy any new Hyundai. And if, in the next year, you lose your income, we’ll let you return it.” (There is unreadable mouse print in the ad when those words are spoken.)
While this may sound like a refund program to some, it is not.
*MOUSE PRINT:
This is actually a lease cancellation or loan cancellation program, and does not apply to customers who buy their cars outright. In essence, they will let you return the car, under six specific circumstances, and will cancel your continued indebtedness. There is no refund of any money.
In particular, they look at what your car is worth when you turn it in, and compare it to what you owe. Hyundai will waive up to a $7500 difference, and you have to pay the rest.
Under what circumstances can you return the car? These are the six reasons:
Involuntary unemployment, physical disability, loss of driver’s license, international employment transfer, self-employment personal bankruptcy, and accident death.
Written like an insurance policy, each of these reasons has a list of limiting qualifications. For example, to qualify for the unemployment benefit, you have to be employed full time for at least three months before and after the policy begins; you have to be approved for state unemployment insurance (or an alternative option); you can’t be self-employed, have retired or resigned, or have gotten a new job; etc.
How does Mouse Print* know all these deep details? Certainly not from watching Hyundai’s television commercial or reading their website set up specifically for this program. When Mouse Print* asked the plan administrator for all the terms and conditions and legalese, we were directed to go to any Hyundai dealer. Calling a nearby dealer, the sales manager acknowledged he did not yet have the terms and conditions to give to customers and only had a flowery brochure. Even initial contact with Hyundai’s press relations folks turned into a dead end. Finally, a copy of the terms and conditions  [pdf] was provided by the plan administrator’s PR person.
No potential customer who is going to spend $15,000, $20,000, $30,000 or more should have to beg and grovel with company officials to learn the details of a program being promoted via a multi-million dollar ad campaign. In the end, if you meet the nitpicky qualifications, this is a good bit of free (non) insurance to have when buying a new car given our uncertain times.
The six reasons listed for returning the car seem reasonable and fair but can they legally make you abide by their terms and conditions if they never provided them to you in the first place?
Edgar replies: Peter, I have little double that at some point after the sale that the purchaser gets the terms and conditions. My guess is that few see the details before the sale, either because they didn’t ask, or that Hyundai has not made the terms readily available.
I dont know why, but I just assumed one would not be able to get his\her money back using this program.
Why would you assume you got your money back? You would’ve had to pay for the time you drove the car. I assumed that you would turn in the car without further obligation of payments provided that the car was not “trashed”. Of course there are terms and conditions but why would Hyundai make them readily available? To catch those poor ‘suckers’ that always come along and don’t read the mouseprint.
Sorry – I have to disagree, I read the terms and conditions and in reality no one who hasn’t been working for less than 3 months “full time”, which is 30 hours by the policy terms (which is TOTALLY FAIR) but you didn’t mention that, but anyway I digress. So you have to be working for 3 months before you take on a lease or a loan, reasonable enough to me. And then I am at work for another 3 months and if I lose my job then I can return the car and Hyundai covers me – cool. Really – I am not going to buy a car KNOWING that in all probability that I am going to return my new car; i get it, it’s for unforseen events (gee that sounds a lot like insurance to me). And it not only covers me for job loss but for disability too – awesome. Come on folks this seems like a GREAT idea to me!!
Vince, It does sound like a good deal but I think one of the issues here is that “terms and conditions” are for customers to read BEFORE they make the purchase regardless of how a great deal it might be. In this case, Hyundai seems to be keeping it to themselves and as Edgar pointed out, no customer should have to beg to learn the details of a program.
The minute I saw this commercial, I knew I would have to come to Mouse Print to get the real details! Thanks for the information, I’ll stick with my paid for 12 year old Explorer!
I went to a local Hyundai dealer and I got terms of the contract in 10 minutes from the finance office, not the sales manager, and they were glad to do so (Huffines Hyundai outside Dallas). So one call, to one sales manager doesn’t make a case for me and a call to the press relations people – well what would one expect? I would have been shocked if 5 or more dealers couldn’t provide a contract. The first one I went to gave me a blank agreement. Also the plan just got launched across the country; it must be a logistical nightmare to execute at the dealer level (remember the gene pool in a car dealership isn’t the best) and I am sure I can call anyone in your network and dig up dirt. Read the contract, I think that the terms are pretty liberal – I still think that it is a good thing and if Obama made a vehicle return program like this for everyone, we wouldn’t need a huge bailout or the car companies – just us the consumers.
It’s a marketing ploy on Hyundai’s part. Its purpose is to get buyers in the the dealers showroom. If it draws a buyer, the promotion has done its job. Will Hyundai honor their commitment? Probably but the qualifications are strict. It’s an insurance policy and a good marketing gimick.
If you took out a loan to buy the car and return it within the first year,
and the car is worth less than the remaining balance on the loan,
will you still owe the dealer some money when you return it?
If you loose your income (as described in the terms and conditions) during the first year of ownership, and you return the car, Hyundai will take the car back and pay up to $7500 of negative equity to settle any outstanding debt or lease agreement. Every one of the terms seem very reasonable to me. Considering that Hyundai paid $3 million for the 30-second commercial during the Super Bowl, I would not expect them to use that time to go over every single detail. What a bunch of cry-babies!! When I purchased my Hyundai recently, I had to sign an acknowledgment that it did not apply to me because the car was not financed or leased.
Apparantly Mark didnt understand the issue. The problem is NOT with the details of the program. It is the fact that it was not readily available for people to read as it should be. It is ridiculous to imply that all customers should purchase their vehicle based on what they heard on the commercial as many of us have been burned because we didnt pay attention to that miniscule asterick. All dealers should have the terms and conditions available before the commercial airs.
The claim that one has to “beg and grovel with company officials to learn the details of a program†is a wild exaggeration. The brochure and the website have a good summary of the pan. If you read the PFD file referenced (link provided by Edgar above) that has the official Assurance Plan certificate, it is clear that the certificate must be presented to the purchaser of the car and signed by the purchaser when the car purchase deal is closed. So if the dealer was participating in the plan they had to have the certificate on hand. Hyundai made it clear that the offer was good at “participating†Hyundai dealers, although I don’t know if there are any not participating.
But maybe Edgar was correct and that “one†dealer (apparently located in Canada if you look closely at the PDF certificate) did not have the certificate on hand for viewing by a customer. Car dealers are separate legal and financial entities from Hyundai, and are independent agents. If one Hyundai dealer is incompetent, then go to another Hyundai dealer for your business. Edgar interjects: The dealer was in Massachusetts. The plan administrator is a Canadian company, I believe, and even they could not or would not provide the contract to an average consumer (without having to go through press channels to obtain it).
And Edgar did specifically complain that the plan has “nitpicky qualifications.†I don’t agree, and I think the plan is very generous and the qualifications are designed to prevent fraud against Hyundai.
Kinda like when Mistu had the zero down, sign here, drive away program.
Mistu almost went out of business.
Anyway. Hyundai ‘January’ sales are actually in a 3 year decline.
They sold more cars in Jan 2007 then either Jan 2008 or Jan 2009.
Dec 2008 sales were off by 48%.
Not exactly reported that way on the TV business news.
the administrator is WALKAWAY USA located in Irving TX – all dealers have access to a program website where they can download a PDF for consumers to read the terms and conditions – hey – it’s insurance and of course Hyundai is not going to allow a dope dealer to return their car if their main source was caught in gun fight and shot or an illegal immigrant or something show up to get out of the car loan. Get over it people – it’s an insuracne policy and every insurance has a ‘contract’ with mouse print and the contract I got wasn’t something I needed a magnifying glass to read. I encourage you all to get one and judge for yourself. I compared these to the insurance terms I had to get for my credit card – and they want .90 cents per $100 of balance, and get this – every month! So I owe 7,500 (same benfit as Hyundai) and that’s 67.50 a month for job loss insurance or $810 for the year and I have to be employed for a year to qualify. Hyundai is GIVING this away and the terms are generous and reasonable. I agree with Mark – cry babies … WHAT ARE OTHER CAR COMPANIES DOING FOR THE ECONOMY. I know, I know – it’s about getting the agreement BEFORE I buy, but try that now; it’s a lot easier. The dealer I went to told me that they didn’t even know this was happening and that the first time anyone saw it was on TV on Jan. 2 – I guess it happened pretty fast, just like the crash in November. My lease is up soon and I’m still working and if I still am I’m getting a Hyundai – what would you get?
This is not that bad a deal, as most offers go. Using one dealer is clearly not a scientific survey since auto dealers are notorious for their “independent” ways of doing business. However, the television add is quite clearly misleading in one way. I don’t know anyone who thought this was a refund program. They do perceive it though as a way to get clear of automotive debt, which it is not. (The mouse print is too small and on too little time.)
This unfortunately could, with the aid of an unethical salesperson, help justify someone to buy well over their means. Buying a car over your means and not being able to meet your payments is not one of those “six reasons.” Yet if you happened to only qualify for one of those auto dealer acquired high interest loans and found yourself turning in your car within a year after purchase you could still be in big trouble. Even with the $7,500.00 forgiven, you could still find yourself owing the near full amount of your purchase due to that high interest rate and not have any relief what so ever.
I understand exactly what you mean. Readily available for reading. I purchased a car from my local dealer with no intention of losing my job. Have worked 40-60- hrs a week for years. Government downsizing and budget cuts cost me my position. After talking with the dealership I had NO problems retuning the vehicle. I however lost my trade in and had to provide an additional 1300.00 dolars in funds. Absolutly NO ramifications to my credit worthiness. It is the best policy anyone has come up with and when I get back on my feet I will buy another Hyundai.
1 simple fact – if Hyundai tells you to see the dealer for details and dealer does not have any details – then there ARE no details. You can’t add them later. I cannot see many courts not interpreting this in favor of the consumer under these facts. . .