Written by Craig D. Robins, Esq.
Hyundai says buy one of our cars — If you lose your job you can return the new car
Hyundai has a new “Assurance Program” that seems to be taking car buyers by storm.
Under the program that began last month, Hyundai allows buyers who lose their income to return their new car to the dealership they bought it from and walk away from the payment with no penalty, no obligation to pay the depreciation costs, and no hit to their credit report.
As a result of the Assurance Program, Hyundai was essentially the only major automaker to report a sales increase in January, when nearly all of its rivals reported huge losses.
Now Hyundai is now taking its Assurance Program to the next level with the “Hyundai Assurance Plus Program.” The Plus means that owners who suffer a disability or lose their job will get payment relief for 90 days or three car payments. The rest of the deal still applies – after 90 days, buyers can decide to return the car at no penalty, or resume making payments.
There are, of course, a few stipulations. Hyundai will assume a maximum liability of $7,500, and you have to make at least two payments before filing a claim. The cap is meant to keep people from returning damaged cars or ones with tens of thousands of miles on them.”
The Plus program will run through the end of April, while the larger Assurance program continues through the end of 2009.
I am not necessarily endorsing Hyundai cars, but can’t help but comment that many Long Island consumers facing potential layoffs later this year might benefit by having this extra degree of financial flexability.
Even without a program such as this, a consumer who files for Chapter 7 bankruptcy on Long Island can generally surrender any vehicle and discharge their obligation on the car loan or lease.