Creative Marketing: Hyundai Will Take Your Car Back If You’re Laid Off
In a creative gambit, the North American unit of South Korea-based Hyundai Motor Company is introducing a new incentive: Hyundai will take your car back if you are laid off or experience any other covered life-changing event. This coverage is actually an insurance policy taken out by Hyundai via a third-party insurer for every vehicle sold in America and is valid for one year from the date of purchase.
Conditions of Coverage
- Only covered life-changing events are covered, including: involuntary unemployment, personal bankruptcy if self-employed, accidental death, overseas transfer
- The buyer must have made at least two full payments before making a claim
Coverage Details
- Hyundai will cover the difference between the vehicle’s value and remaining loan amount up to $7,500 for a covered event
- Coverage is automatic at no additional charge regardless of heath or employment history
Is It Worth it?
Needless to say, I’m skeptical. Hyundai claims the coverage will come at no additional charge, but who’s to say dealers wouldn’t be willing to sell at a lower price without the added coverage? The odds are extremely low that any given Hyundai buyer will lose their job within a year, so I don’t think many people will benefit from this deal. Hyundai and the insurance company, however, both benefit from the publicity of the deal and extra cash flow it affords.
If I were in the market for a new car, I might consider Hyundai more than I otherwise would, but it probably wouldn’t tip the scales too much in their favor. However, if I was worried about losing my job, I wouldn’t be buying a new car in the first place. Thus, the plan strikes me as nothing more than a clever marketing deal. Still, if it sells cars…
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I love it. This is capitalism at work. Smart people getting creative and attaching the heart of the economic problem – fear.
Some people may even believe that buying a Hyundai will prevent them from getting laid off. Regardless if they get laid off, what matter is that they don’t believe it will happen to them.
This is great marketing. I hope we see some more marketing ideas like this.
Yes, the Korean marketing-people are very clever.
Hey this is a very interesting article!