Car City Motor Company St. Joseph, Missouri

Hyundai Assurance

1. Q. Why is Hyundai doing this type of program and why now?
   A. We know the economy is tough right now. Research we did showed that people have been reluctant to buy new cars in part because of their fear of losing their job. We want to take away that fear, give them the safety and security of this program that means they can buy a car without worrying.
2. Q. Does that mean you’ll drop the program if the economy gets better?
   A. Right now we are planning to offer it through 2009 but the program is only a few days old so it’s hard to say how we’ll proceed beyond this year.
3. Q. What is the cost to the consumer?
   A. The coverage is free for anyone who finances or leases a new car or SUV from a participating Hyundai dealer.
4. Q. When did the program start and how long will the Assurance Program be offered?
   A. The program began on Saturday, January 3. Hyundai plans to offer the program at least through 2009, and will evaluate it later this year.
5. Q. How long does the program cover a buyer?
   A. For 12 months from date of purchase. However, if the customer wants coverage for a longer period, the Hyundai dealer can provide that for an additional charge.
6. Q. What do you expect the vehicle return rate to be?
   A. It is too early to know, the program has only been in effect since January 3.
7. Q: How many people are taking advantage of the program?
   A. The program is offered to anyone who finances or leases a new Hyundai at a participating dealer. There is no cost for the customer so we estimate that almost everyone buying a Hyundai will take part in the program.
8. Q: Isn’t this just a marketing program?
   A. Yes, we hope the program will sell more cars, but it is also part of providing our customers with safety and security, two hallmarks of Hyundai and its vehicles.
9. Q. What has been customer reaction?
   A. It is so early in the program we only have anecdotal information, but to date it has been very positive. Early reports show customers understand that Hyundai knows buyers are worried in this tough economy and Hyundai is helping protect them. We have reports from a number of dealers that they’ve sold cars to customers after explaining the Hyundai Assurance program to them.
10. Q. This program sounds unique? Is there anything else like it in the market?
    A. There is nothing like this in the market today and Hyundai is the only automaker offering this type of protection. [FYI: Many years ago another automaker (VW) tried a similar program but there has been nothing like this in the market for 15 years]
11. Q. How does the program work?
    A. 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. Once the benefit is approved by the Hyundai Assurance administrator and the customer pays any outstanding balance, the customer returns the vehicle to the selling dealer, whose appraisal is factored into the valuation formula, and the consumer avoids further financial obligation or negative impact to his/her credit. The dealer is then able to remarket the vehicle.
12. Q. Is the Assurance Program part of the Warranty?
    A. No, but it does complement the Hyundai Advantage: America’s Best Warranty. The Hyundai Assurance Program is standard on all new Hyundai’s financed or leased, and is complementary for the first 12 months.
13. Q. How much do you expect the Assurance Program to cost Hyundai?
    A. We fully expect the costs of the program will be overcome by incremental vehicle sales. Overall, we expect this to motivate sales and profit for Hyundai and our dealers, but we aren’t disclosing the specific financial estimates.
14. Q. Can consumers extend the coverage beyond the initial year?
    A. We are researching consumer interest in that now so stay tuned.
15. Q. How is Hyundai protected under the terms of the program? Is it that customers have to pay the difference between purchase price and current value (on top of what they've already paid)?
    A. No. Consumers are covered up to $7,500 in negative equity.
16. Q. Who pays for negative equity? Does Hyundai eat the cost, or is that part of the services offered by Walkaway?
    A. The costs of the program are proprietary. Hyundai has contracted Walkaway to administer the program for us.
17. Q. What was the genesis of this program? Did Walkaway approach Hyundai with the idea, or had Hyundai seen what Walkaway was offering dealers and figured why not make it a national program?
    A. Hyundai did extensive consumer research and found that for some consumers, fear of losing a job and being unable to afford new car payments was preventing them from purchasing a new car. Working with Walkaway Hyundai developed the program to allay the concerns of the consumers and provide them with the safety and security to purchase a new vehicle.
18. Q. How many dealers are participating in the program?
    A. Virtually all of our 790 dealers in the United States are participating in the program.
19. Q. What sort of advertising is Hyundai doing to support the program?
    A. Hyundai conducted extensive advertising during the NFL playoff games the weekend of Jan. 3-4. Advertising will continue throughout January on network TV, cable, sporting events and syndicated programming. Some primetime examples include shows like “24,” “Grey’s Anatomy,” “Two and a Half Men,” “Desperate Housewives,” “CSI,” etc. We will include the Hyundai Assurance Program as a significant element of Hyundai advertising for the rest of 2009.
20. Q. What is the initial response from dealers and consumers? How many cars have you sold?
    A. Initial response is extremely positive, though it’s too early to quantify sales. Dealers were very enthusiastic and confident this would drive more showroom traffic. Several sales regions have reported exceptionally strong showroom traffic to start to the New Year. Early consumer feedback is also positive and reflects our hope that we are removing a barrier to buying or leasing a new car. Consumer FAQ:
21. Q. I'm 72 and have a heart condition. Do I qualify for Hyundai Assurance?
    A. YES. Everyone qualifies regardless of previous age and previous health conditions.
22. Q. My diabetes puts me at risk of losing my vision and therefore my license too. Does Hyundai Assurance cover me?
    A. YES. You would be covered due to loss of driver's license regardless of your pre-existing diabetes.
23. Q. I need a hip replacement and am awaiting surgery. Would I be covered for disability if I'm off work due to the surgery?
    A. YES. Hyundai Assurance does cover time off of work for physical disability.
24. Q. If my employer transfers me to Mexico, would this be considered an "international transfer" for benefits purposes?
    A. YES. Any country other than the United States is considered "international" for benefits purposes. Q. Can I walk away under the "involuntary unemployment" benefit, if I quit or resign from my job? A. NO. Hyundai Assurance only covers events that are beyond your control. Your employer must terminate you from your position in order for you to qualify for benefits.
25. Q. I'm in the military. If I am not deployed, but I am assigned to a post outside of the United States for the next 2.5 years, could I still qualify for the international employment transfer benefits?
    A. YES. As long as you are not deployed and are assigned outside the United States for more than 24 months, you may still qualify for benefits.
26. Q. If my employer moves its offices out of state and I don't make the move, am I covered?
    A. If you lose your job as a result of a move by your employer, you are eligible for coverage.
27. Q. If I cosign for my daughter and she loses her job, are we covered?
    A. Hyundai Assurance only covers the primary buyer. If your daughter is listed as the primary buyer and she loses her job, she is covered.
28. Q. My wife and I share a car. Can we request a benefit if one of us loses our job, even if the other one remains employed?
    A. There can only be one protected person under each Hyundai Assurance certificate.
29. Q. Will returning a car, thanks to a payable Hyundai Assurance benefit, damage my credit rating?
    A. NO. The return of a vehicle with Hyundai Assurance is not a credit default. It merely represents your exercise of your privileges under the program. As a result, Hyundai Assurance protects both your credit rating AND your savings.
30. Q. If my son is listed as co-buyer on my contract, can he receive the complimentary coverage or agreement/contract?
    A. Hyundai Assurance only covers the primary buyer on the vehicle contract or lien. The covered individual must be the individual listed as the primary buyer.
31. Q. Is returning a vehicle due to a qualifying Hyundai Assurance benefit considered a voluntary repossession?
    A. NO. The return of a vehicle resulting from a paid benefit is considered an early pay out of your loan or lease. It's not considered a voluntary repossession and doesn't adversely impact a consumer's credit rating in any way. HOWEVER, RETURNING YOUR VEHICLE PRIOR TO BENEFIT APPROVAL WILL BE CONSIDERED A VOLUNTARY REPOSSESSION BY YOUR LENDER AND CAN IMPACT YOUR CREDIT SCORE NEGATIVELY.
32. Q. Am I responsible to maintain full coverage insurance before returning the vehicle?
    A. YES. You must maintain full coverage insurance before returning the vehicle.
33. Q. Will cosmetic customizations made to my car impact its value?
    A. In some cases, customizations such as specialized paint, customized wheels, and suspension can reduce resale value. Other changes, on the other hand, may not impact the value of your vehicle and therefore would have no impact on your benefit.
34. Q. What if the car has been scratched or in an accident?
    A. You are responsible for having "insured" damages repaired prior to returning the vehicle.
35. Q. How long does it take to complete a request for benefits?
    A. On average, benefits have been paid within 35 calendar days from the date the request is first submitted. Prompt submission of your qualifying documentation is essential for timely processing.
36. Q. Can I continue to drive my car while my request is being processed?
    A. YES. Your car and related financial obligations remain yours until your benefit is approved. Once approved, a benefit consultant will give you instructions for returning your vehicle.
37. Q. There is no equity in my car because I financed my taxes and put no money down. What if the benefit amount isn't enough?
    A. In the case of more expensive vehicles, custom items or the financing of taxes and extras, the benefit amount may not be enough to cover the financing shortfall should you elect to return your vehicle. In this case, you would be required to make up the balance with your own funds.
38. Q. What proof do I need to provide for unemployment, transfer, etc.?
    A. There are standard benefit requests forms that will be supplied to you for completion upon notification that you have experienced one of the covered circumstances. Additional information may be requested based on the circumstance, such as a termination notice or international job transfer notice, to document the circumstances.
39. Q. Can I get the coverage for more than 12 months?
    A. The Hyundai Assurance program is provided for the first 12 months of your auto loan.
40. Q. Do I get a refund?
    A. The Hyundai Assurance certificate is provided to you at no charge by Hyundai, so no refund is available.
41. Q. Is this kind of like a lease?
    A. The Hyundai Assurance program is not a lease. It is a complimentary certificate provided to you at no charge to cover unforeseen life changing circumstances.
42. Q. Is this something I have to pay for? If so, what's the additional cost?
    A. The Hyundai Assurance certificate is provided to you at no charge. There is no cost to you for Hyundai Assurance coverage.
43. Q. Who covers the depreciation of the vehicle?
    A. In the event of a covered circumstance, Hyundai Assurance allows you to "walk away" from contractual obligations associated with the financing when negative equity exists. The program will cover a maximum benefit of $7,500.00 in negative equity.