Depreciation is the single highest cost of new vehicle ownership.
Hyundai is looking to make a strength out of one of its former weaknesses – the trade-in values of its Korean designed vehicles. So the company is adding a new Trade-in Value Guarantee to its Assurance warranty program. This latest marketing push is made possible by newly found strength in Hyundai residual values, now among the highest in the auto industry, as Hyundai’s newest generation of vehicles has increased in sophistication and quality compared to previous models.
Hyundai says the guarantee will eliminate concerns about depreciation – typically 50% of the new price a vehicle after 36 months have elapsed – by giving Hyundai owners a guaranteed trade value for their vehicle in months 24 through 48 of ownership.
The program will be applied to all new Hyundai vehicles purchased on or after May 1, 2011 at no additional cost to consumers.
All Hyundai vehicles now sold in the U.S. are covered by the Hyundai Assurance program, which currently includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai’s 10-year/100,000-mile powertrain warranty, five years of complimentary Roadside Assistance and now the Trade-in Value Guarantee.
“Depreciation is the single highest cost of car ownership,” said John Krafcik, president and CEO, Hyundai Motor America.
The guaranteed trade-in value is determined by the Automotive Lease Guide (ALG) forecast of future value. Customers can trade in their qualifying vehicle towards the purchase of a new Hyundai vehicle during months 24 through 48 of ownership. At the time of trade-in, the customer’s vehicle will be assessed to determine the current market value and compared to the guaranteed value. If the assessed value is higher than the guaranteed value, the customer will be able to apply that value toward the purchase of a new Hyundai vehicle. If the assessed value is less than the guaranteed value, the customer will be able to use the guaranteed value toward the purchase of a new Hyundai vehicle financed through Hyundai Credit.
At time of trade-in, the customer must show proof of vehicle maintenance at the recommended intervals through authorized Hyundai dealerships. Coverage is only applicable when the current market value of a vehicle drops below the guaranteed trade-in value of the vehicle. Lease vehicles are not covered by the Trade-in Value Guarantee.
