Sign of the times

South Korean brand Hyundai has found a novel way of keeping interest up in the dire American new car market. The recently launched Hyundai Assurance Program offers buyers the chance to return their new car within one year of purchasing it if their income should dry up.

The program covers loss of income through involuntary unemployment, physical disability, loss of driver’s licence due to medical grounds, international transfer, self-employed bankruptcy and accidental death.

As long as at least two repayments have been made and payments are up to date customers can return their car to the dealership they got it from. The scheme applies to both purchases and leases.

Early reports indicate that so far the program has had an impact, with American auto sales website Edmunds.com reporting a 15 per cent increase in buyer intent when Hyundai first announced the program. Interest has since leveled off at seven per cent up on the seasonal adjusted average.