Products like the new Hyundai Accent will be covered.
Korean carmaker Hyundai, fresh off one of the best months in its history, has revealed the details of its new Hyundai Assurance Program, which offers buyers a set trade-in value at the time they purchase their car.
First announced at the New York Auto Show, last month, the Hyundai Assurance Program is the latest in a series of innovative marketing programs the Korean maker’s U.S. facility has launched in a bid to build brand awareness. It has also launched extended warranties and even offered to buy back vehicles from customers who lost their jobs during the recession.
The new program, which covers vehicles two to four years after purchase, will provide a set trade-in price based on the initial analysis of the Automotive Lease Guide. ALG’s numbers are routinely used to determine the residual values of leased vehicles. Residuals, in turn, help a maker like Hyundai decide how much to charge on a monthly lease.
The program is designed to help buyers know they will get a minimum set value when they are ready to trade in, though Hyundai says that buyers will get a larger figure should their car or crossover turn out to be worth more.
Not surprisingly, the program covers only products that are later traded in at authorized dealers on a new Hyundai.
During the original announcement at the NY Auto Show, Hyundai America CEO John Krafcik acknowledged the program served double duty as a come-on for the fast-growing maker. But Krafcik told TheDetroitBureau.com that the maker could not forecast how much it anticipated the Guarantee would do for Hyundai, though “directionally, we know it will improve loyalty.”
Hyundai has been on a role in recent months. Globally, its sales exceeded those of Honda, last year, and it recorded a strong profit for the first quarter of 2011 driven by rising sales. The numbers climbed by 40% in the U.S. last month, giving Hyundai its best April ever.