Hyundai Assurance Program: Lose Your Job, Return the Car

Dubbed the Hyundai Assurance Program, the South Korean automaker said that people who finance or lease a new Hyundai during the next 12 months can return the car if they “experience an involuntary loss of income” within one year of the purchase date.

“That’s a new one,” said Erich Merkle, an industry analyst with consulting firm Crowe Horwath in Grand Rapids, Mich. “It’s an indication of the very tough sales environment right now.”

Hyundai said it would absorb up to $7,500 in negative equity (the difference between what a vehicle is worth and what is owed on it) for buyers who opt to walk away from their loans. Customers who pay cash for their vehicles don't qualify for the program.

Depreciation can reduce a new car’s value by 25% or more during the first year of ownership. But since Hyundai’s lineup skews toward low- and moderately priced cars, the amount should be enough to cover the lost value on most Hyundai vehicles...

According to a Hyundai press release, buyers can return a vehicle for no additional charge within 12 months of purchase if any of the following occur:

-- Involuntary unemployment
-- Physical disability
-- Loss of driver’s license for medical reasons
-- Job transfer overseas
-- Personal bankruptcy filing by a self-employed worker
-- Accidental death

To qualify, the buyer must have made at least two scheduled payments on the loan or lease and be current on the payments, as well as pay the amount over the $7,500 negative-equity threshold.