Consumer Car Buying Advice Blog

Car shoppers including those bad credit car loan buyers have just over 6 weeks to take advantage of the Hyundai Assurance vehicle return program.

Cars that fit the bill

At Auto Credit Express, we are in the business of helping consumers with bad credit reestablish their auto credit and raise their FICO scores with a bad credit auto loan through one of our participating dealers. Due to financial considerations, a majority of the vehicles purchased with one of these loans are used cars.

There are, however, a number of new cars that also qualify for many of these bad credit car loans and among those manufacturers who offer these types of cars, Hyundai is definitely on the list. New cars from the Korean automaker fit the bill in two important respects: they are affordable, and they come with a long and comprehensive new car warranty.

As is that wasn’t enough, Hyundais also come with a unique “assurance program” that protects consumers in case of a job loss might cause them to be unable to afford their new car – an event that could be especially devastating to consumers hoping to improve their credit scores. But this program is set to expire at the end of the year, so bad credit car customers need to take advantage of it while they can.

The program

Here’s how it works: If you finance or lease a new Hyundai vehicle and experience one of 6 covered events, including job loss, within 12 months of purchase, you have the option to return your Hyundai and walk away from up to $7,500 of negative equity with no impact on your credit score. This coverage comes at no charge and you are qualified regardless of your age, health or employment history.

Covered events

The 12-month policy covers the following qualifying events:

• Involuntary Unemployment
• Physical Disability
• Loss of Driver’s License due to Medical Impairment
• International Employment Transfer
• Self-Employed Personal Bankruptcy
• Accidental Death

Covered employment issues include termination (not resignation), job loss due to a move by the employer and co-signed loans if the primary borrower suffers a job loss. International employment transfers are also covered as a transfer to any country other than the United States is considered “international.”

Disability events include work loss due to physical disability, while the medical impairment example used is loss of vision due to pre-existing diabetes.

Credit consequences

According to Hyundai, if you follow the correct procedures outlined in the program (call or email the Assurance Administrator, supply the necessary documents, have your vehicle appraised at a Hyundai dealer), the return of a vehicle resulting from a paid (and approved) benefit is considered an early pay-out of the loan or lease and is not considered a voluntary repossession and will not impact your credit rating “in any way”.

Program limitations

As far as we can tell, there are really two main limitations to the program – time frame and negative equity. Buyers are, unfortunately, covered for only the first year of the loan. Once that time has expired, you’re in the same situation you would’ve been in without the coverage. The second issue, negative equity, needs to be examined from the perspective of your own personal situation. If you are rolling in negative equity from a previous car loan, or if the vehicle you are buying is one of the more expensive models, $7,500 may not cover the negative equity during the first 12 months of the loan. In this case, you would have to come up with additional funds to cover the entire amount in order to qualify for the buy-out.

The Bottom Line

Here at Auto Credit Express, we think that Hyundai’s Assurance Plan is probably the most innovative program we’ve seen in a long time. With the program set to expire on December 31st, bad credit car loan buyers have just over 6 weeks in which to take advantage of the program.

For more information on bad credit car loans and the bad credit auto loan process, please visit our web site at www.autocreditexpress.com.

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