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A Sign of the Times

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January 05, 2009 – Comments (3) | RELATED TICKERS: GM

 

Here's an interesting promotion that I came across this morning.  Hyundai introduced a new offer which is calls the "'Hyundai Assurance Program."  Basically, this program allows consumers who experience an "involuntary" loss of their job within twelve months of purchasing a new Hyundai to return their vehicle for free.  If this isn't a sign of the times, I don't know what is.

"Hyundai Assurance Program" Press Release

Speaking of the auto industry and the recession, automakers publish their December sales figures today.  I have seen several forecasts that sales in the U.S. as a whole fell 40% year-over-year last month.  While I expect the December numbers to be absolutely horrible, I personally believe that sales will drop in the mid-30% range. 

We may very well have gotten to the even scarier -40% number if the government hadn't made that that significant end of the year cash infusion to GMAC which enabled General Motors to reintroduce special financing rates and lower its credit standards.

It's funny how one is optimistic when they expect sales of what essentially is the second most expensive item that consumers can purchase (behind a new home) to fall by a third.

Deej

3 Comments – Post Your Own

#1) On January 05, 2009 at 2:16 PM, guiron (< 20) wrote:

The biggest dealer here (all brands) told me that they sold two cars since the crash until the end of last year. That's down way more than 40% for them. However, this is a resort town and we're pretty rural. But that is the worst sales decline this particular dealer has ever seen.

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#2) On January 05, 2009 at 3:25 PM, outoffocus (23.59) wrote:

I think its greatly innovative.  These are the types of companies that should be rewarded.

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#3) On January 05, 2009 at 4:42 PM, ClearEyez (29.06) wrote:

LOL. What a dumb deal. So it's basically like a Repo except your credit doesn't get hurt. However, you also don't get to drive the car for free for the 3-6 months it takes them to repo your car. Also you look at the details and you don't always get to return the car for free. It says "Consumers must have made at least two scheduled payments on their loan or lease, be current on all payments and pay for any outstanding balance above the $7,500 benefit amount which results from negative equity." So say you have it for ten months. If it deprecitated by more then $7,500 then you gotta pay the amount above that. Considering a 40K car probably depreciates 5K the moment you drive it off the lot that is not saying much.

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