Consumer Car Buying Advice Blog

The vehicle return program that was set to expire at the end of 2009 has been extended through 2010 by the Korean manufacturer which is a good sign for bad credit car loan buyers.

Back in the game

Just when we thought it was out, they pull it back in. At Auto Credit Express, we’re happy to announce that Hyundai has decided to continue its assurance program. You see, we’re in the business of helping consumers with bad credit reestablish their auto credit and raise their credit scores through our network of dealers that specialize in bad credit auto loans.

And although financial considerations usually dictate that a majority of vehicles purchased with these types of any credit auto loans are used cars, there are a number of affordable new cars that also qualify for many of these poor credit car loan programs and Hyundai is among the manufacturers who new cars that fit the bill in two important respects: they are priced right and they come with a long and comprehensive new car warranty.

The program

In January of 2009, Hyundai was among a group of manufacturers that came out with “assurance” programs designed to protect consumers from “certain life-altering circumstances” such as job loss or medical issues.

Since that time, manufacturers other than Hyundai have terminated their programs. But the Korean company, sensing that the time was ripe to grab additional market share and knowing that it had a good thing going, extended its program through the end of the year – all the while stating that market conditions would determine whether or not it would continue into 2010.

That question was answered last week with a press release stating that Hyundai will extend the vehicle return option through 2010.

“Hyundai Assurance represents our complete commitment to our customers, with job-loss vehicle return coverage, five years of roadside assistance, and our industry-leading 10-year warranty,” said John Krafcik, president and CEO, Hyundai Motor America. “Assurance shows that we’re doing things a little bit differently at Hyundai, and this is making a difference in our business results.”

The specifics

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 the purchase date, 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 with no charges 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 impact

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 or FICO score “in any way”, according to Hyundai.

As we see it

Here at Auto Credit Express, we’re goad to see that Hyundai is extending their Assurance Plan – one of the most innovative programs for bad credit consumers that we’ve seen in a long time. The extension means that credit challenged customers have another year in which they can take advantage of the peace of mind this program offers.

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

Tags: auto loan, bad credit auto loans, bankruptcy, better business bureau, black book, car loan quote, chrysler employee discount, credit monitoring, credit score, gm, hyundai assurance, incentives, monroney label, stolen title, we finance everyone

This entry was posted and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.