Supply and demand is the name of the game, and these days there's hardly any demand for new cars. Hyundai is responding to this economic reality by getting creative in a way that could appeal to potential car buyers who are concerned about losing their jobs.
The company is offering a walkaway program that allows buyers to return their cars if they endure a life-changing event within one year of purchase. Hyundai defines life-changing events as involuntary job loss, personal bankruptcy if self-employed, getting transferred overseas, and accidental death.
Owners must have made at least two scheduled payments before requesting a return, and owners returning their vehicles would be liable only for negative equity over $7,500. As explained by the Wall Street Journal, "if you have a $20,000 loan remaining on a truck that is now worth only $10,000, you can return the truck and Hyundai will cover $7,500 of that $10,000 liability."
Do you think Hyundai will generate more business with its walkaway offer?