Wednesday, February 27, 2013
Hyundai Assurance Buy-Back Program
In class this week we discussed how Hyndai had successfully created the Hyundai Assurance Program. The program went on for 26 months and helped increase auto-sales for New Hyundais during the recession. It helped assure people that it was okay to buy a new car because if they lost their job they would be covered. Although this program only lasted for 26 months in 2011 Hyundai started a new assurance program.
Hyundai's latest assurance program is the Hyundai Assurance Buy-Back Program. Where before Hyundai guaranteed that they would take your car back if you lost your job, they are now assuring the price of your car for a trade in 2-4 years from now. They give you a projected residual value for a later date when you go in to buy your new car. When you actually go to trade in your Hyundai they view the actual residual value and the one that they projected when you bought the car and you get the higher of the two. The only catch? You must keep your car maintained at the Hyundai authorized dealer.
These programs that Hyundai has created has increased their sales above the market's increased sales. Other factors that have also increased Hyundai's sales are better designs, better reliability, and better mileage than before.
I found an article from CNBC describing the program called Hyundai's Latest Assurance Program Could Be Trouble for Competitors. The following link can bring you to it to read more if you are interested,
What other companies have taken on programs like this? Were they successful? Why or why not?