Americans have been saving at a greater pace than in past years, causing additional stress to the unstable economy. As job losses accelerate and the recession tightens the grip on wallets, less money is being spent on consumer goods such as automobiles, and that expendable income is now going into savings accounts across the nation. To counterbalance the new age of economic prudishness, businesses are marketing their own stimulus plans including payment protection for auto loans if the consumer experiences an unexpected job loss.
The most notable program against unexpected job loss is the "Hyundai Assurance" plan. To entice frightened consumers back into the shopping mood, Hyundai is offering a level of protection to car buyers who choose to either lease or finance a new vehicle. When a consumer buys or leases a new vehicle, they get automatic protection if they lose their job within the first year of the car deal. Within that time frame, consumers can return the car to the Hyundai get out of the remainder of their contract without any financial penalty or damage to their credit report.
The program, backed by Walkaway Protection for Automotive Financing, was launched by Hyundai after the car dealer concurred that a key reason people were putting off making a new car purchase was the fear of job-loss. The programprovides complimentary coverage for 12 months (up to $7,500 in negative equity) for new Hyundai purchases. The qualifying terms for returning the vehicle as stated on the Hyundai website are:
- Involuntary unemployment
- Physical disability
- International employment transfer
- Self-employed personal bankruptcy
- Loss of driver's license
- Accidental death
The Hyundai Assurance program was launched on January 3, 2009. So far they have experienced a 14% sales increase over the same period last year. Although Hyundai is the first major car manufacturer to offer the plan, other car shopping opportunities for consumers may be looming on the horizon. Walkway Protection for Automotive Financing is planning a major roll-out of more dealers soon. Interested consumers can access http://www.walkawayusa.com/and see what other car options with this plan are available.
Have you put off a car purchase due to fear of job loss? Would this program change your mind?
