Consumer Car Buying Advice Blog

Bad credit auto loan buyers can be protected from job loss or income loss due to a physical disability with the Hyundai Assurance Program.

Still in the game

At Auto Credit Express, back in January we were pleased to note that Hyundai had decided to continue its Assurance Program. This could be especially important if you’re reading this and you have bad credit but you need a car. You see, through our auto loans for bad credit web site we have helped thousands of credit-challenged applicants reestablish their auto credit by financing a new or low-mileage used car at one of our affiliate dealers.

You can begin the process simply by filling out our online car loans with bad credit loan application. Unlike tote the note dealers, the second chance auto loans our dealers can offer you originate with lenders that report your payment history to the credit bureaus – allowing you to eventually position yourself to re-enter the prime auto loan market.

It’s important to approach the auto credit repair process with the right priorities. Choosing a vehicle at the top of your budget could stretch your finances and even result in repossession. If this happens, the only remaining choice for most auto loans for bad credit buyers is a tote the note car dealer.

And although price usually means that most of the vehicles purchased with these types of loans are used cars, there are a number of affordable new cars that also qualify for many of these bad credit car loan programs and Hyundai is among the manufacturers whose new cars fit the bill in two important respects: they are priced right and they come with a long and comprehensive new car warranty.

The Hyundai program for bad credit borrowers

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

Since that time, the other manufacturers have ended their programs. But Hyundai, sensing that it was a good time to grab additional market share and knowing that it had a good thing going, extended its program through the end of the year and even decided to continue it in 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.”

Hyundai Assurance plan 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 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 with no charges and you are qualified regardless of your age, health or employment history.

You also qualify for the plan no matter which lender you finance your vehicle with. This means that buyers who finance their new Hyundai with a bad credit car loan also qualify for the program.

Covered events

The Hyundai 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, as well as 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.

Impact to your credit

According to Hyundai, if you follow the correct procedures outlined in the program (that is, 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. According to Hyundai, this will not impact your credit rating “in any way.”

The Bottom Line

The Hyundai Assurance Plan is one of the most innovative programs for bad credit consumers that we’ve seen in a long time. The announced extension of the program back in January means that credit challenged customers continue to have the remaining months of 2010 in which to take advantage of the peace of mind this program offers.

On a similar note, Auto Credit Express has helped thousands of people with bad credit buy a vehicle and reestablish their car credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: auto credit, Bad Credit, car credit, credit, credit auto, credit rating, Credit Repair, credit score, hyundai, hyundai assurance, hyundai assurance program, repossession, tote the note

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