Hyundai Offers Voluntary Repossession for Ailing Economy

Automakers trying bold moves after poor sales written by: Shawn Patrick

The Hyundai assurance program is a new incentive plan that allows new car buyers to break their contracts and return the vehicle.

"It's an insurance policy for the consumer," said Mac Clouse, a business professor at the University of Denver.

Any customer who loses a job or becomes disabled, can return the vehicle and walk away from the loan or lease. Hyundai says it will cover up to $7,500 in negative equity.

However, the company decides who qualifies and how much the car is worth.

Clouse says it's an innovative idea.

"Unfortunately it's a sign of the industry, that it took the new automakers to come up with something as creative as this," said Clouse.

Clouse says he wouldn't be surprised if other automakers follow suit by matching Hyundai's incentive plan or try a similar package.

Companies are trying anything to help offset poor consumer confidence.

"They're fearful that they might lose their job. They're fearful that something may happen that will force them to not be able to make the payments," said Clouse.

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