http://money.cnn.com/2009/01/05/autos/hyundai_assurance/index.htm?postversion=2009010513
So... Hyundai will buy back your car if you lose your job, I saw this ad on TV yesterday watching the playoffs. Apparently they found this method works much better than incentives or rebates that we see companies like GM offering. Also, it's not a new thing, they've been doing this with success in Canada for 8 years now.
I wonder, will we see some of our major banks or companies that still have some sort of liquidity consider a program like this? Certain markets I think would need to be excluded, however this could be an interesting incentive to offer.
Can this work?
There's differences, for example Hyundai can just put the car back on the lot, but a bank will have to take on another house to sell. Which usually means that if the house comes back up for sale it won't sell for the same price, and the bank takes a loss. Would the government get involved with this and guaruntee the difference? They've offered something like this already I believe in regards to commercial paper and have plans in the making for people that are behind on their loans too. I think it's safe to say regardless your political party affiliation that the incoming leadership will be much more inclined to do something along these lines.
I'd love to hear others thoughts, I don't see a working solution, unless the federal government gets involved. If the government gets involved I see it being more of a mess than a solution, however what if it helps get parts of our nation on the road to recovery?
Comments(0)