The hit car manufactures are taking during our recession became very clear when I saw a Hyundai commercial promoting its Hyundai Assurance program. This promotion allows buyers to return their car within the next year if they loose their job or experience a life altering event. Wow, that's aggressive; I guess car manufactures are running into the same buyer apprehension I'm experiencing as well -- "Sorry, I can't buy right now. I'm hearing rumors of layoffs and I don't want to commit to any big purchases."
I began feeling a slow down in my sales back in 2006 when lending programs began to tighten; the silver lining then was there was no shortage of people who still wanted to buy homes, there just wasn't as much money to lend as before. That all changed in 2008 as the reality of our recession hit Americans' pocket books personally, and in a very big way. Now, a few of my clients have put their purchase on hold for fear of loosing their job. It's a tough pill to swallow, especially when working with someone for such a long time, but even worse is knowing my client has this sort of stress. All I can offer my clients is understanding and empathy, and at least commit to stay in contact with them over the next few months so at least they're informed and ready to go when the time is right.
If only I could say, "Hey, no worries, you can return your home if you loose your job." Ha, fat chance, that would be way deadlier than any creative financing program of the last couple years; but it would be funny, and I'm sure have a lot of strings attached, as does the Hyundai Assurance program.
To qualify for the vehicle-return program, Hyundai buyers must have made at least two scheduled payments and be current on their loan or lease. Valid reasons for returning the car include involuntary unemployment, physical disability, international transfer, and personal bankruptcy for the self-employed.
The program will cover depreciation up to $7,500. Typical first-year depreciation, which can run about 25 percent of a vehicle's price, would fall within that range for almost all Hyundai models.
Be looking out for more aggresive promotions like this as manufactures and retailers scramble to overcome buyers' objections during our recession. I however, hope Americans purchasing habits remain prudent even after we come out of our recession. I'm sure its our civic duty spend right now (note the sarcasm), but although painful at the moment, saving more is a healthy change for us.
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