The Hyundai Promise
The Hyundai Assurance program includes three elements.
The Hyundai Assurance program includes three elements.
• Trade-in value guarantee | • 10-year/100,000 mile powertrain protection | |
• Roadside assistance |
Of these elements, only the trade-in value guarantee is new.
The Fine Print
Trade-in values are established by Automotive Lease Guide and reflect anticipated market values after 24 to 48 months of ownership. The guaranteed trade-in value will, of course, be reduced for damage to the vehicle or excessive mileage.
In order to receive the guaranteed trade-in value, Hyundai customers must… | Hyundai customers give up… |
· Provide proof that all required maintenance was performed at authorized Hyundai dealerships | · The ability to have maintenance services performed at an independent shop if it is more convenient. |
· Trade their vehicle between 24 and 48 months after purchase | · The ability to trade their vehicles when it is the right time for them. · This also influences the term for which they might choose to finance a vehicle since they don’t want to owe more than the guaranteed value when they trade. |
· Purchase a new Hyundai vehicle (Leases don’t qualify) | · The ability to trade their Hyundai on a different make vehicle if they desire. · The ability to lease their new Hyundai if that makes better economic sense for them at the time. |
· Finance the new vehicle through Hyundai Motor Finance (HMF) | · The ability to use their own financing resources where they might get better rates or to pay cash. |
Who Really Wins with the Hyundai Trade-in Guarantee?
Hyundai gains the assurance of...
· A captive source of maintenance business for dealers
· A captive source of late-model, low-mileage used cars
· A captive source of repeat buyers
· A captive source of business for Hyundai Motor Finance
An analysis of Hyundai Trade-In Guarantee Website Values as of June 1, 2011, reveals that the guaranteed trade-in values are much less than estimated residual values for Honda vehicles. Honda has earned these values and a Honda customer has the freedom of choice in financing, trade-in time, and future model to choose from. Here are just a few examples, comparing the estimated ALG residual values for Honda models to the guaranteed trade-in values for comparable Hyundai models:
Honda Model | ALG 36-month Residual % | Hyundai Model | 31-36 Month Guaranteed Resale Value % |
2011 Accord Sedan EX AT | 55% | 2011 Sonata SE AT | 50% |
2012 Civic Sedan EX AT | 63% | 2012 Elantra GLS AT | 58% |
2011 CR-V 4WD EX AT | 59% | 2011 Tucson GLS AT AWD | 51% |
Where’s the customer benefit?
Honda Advantage
Honda is a market leader in retained value. In the past, respected market sources such as Automotive Lease Guide (ALG), Kelley Blue Book®, and Edmunds.com have recognized Honda and specific Honda models as having the highest residual/resale values and the lowest cost of ownership in their competitive sets. (Check out all the Accolades on the Honda Sales Portal, www.hondamobileassistant.com, and in past issues of Frontline.)
In 2011 Honda won the first ever Edmunds.com Best Retained Value Award for Non-Luxury Brands and four Honda models won model-level 2011 Edmunds.com Best Retained Value Awards.
By choosing Honda, customers gain a number of advantages, including...
In 2011 Honda won the first ever Edmunds.com Best Retained Value Award for Non-Luxury Brands and four Honda models won model-level 2011 Edmunds.com Best Retained Value Awards.
By choosing Honda, customers gain a number of advantages, including...
· Peace of mind that comes with driving a Honda, with Honda’s reputation for reliable and durable vehicles. (Ninety-three percent of all Honda vehicles registered in the last 10 years are still on the road.)
· Confidence that their Honda vehicle will cost less to own and retain more of its value at trade-in time than most other vehicles on the road without the need for a special “program.”
· Freedom of choice during their ownership cycle and when it comes time to trade. Choice about...
o Where they have their vehicle serviced
o When they trade
o What they buy
o Whether they finance, lease, or pay cash
o Whom they finance through
Warranty
Honda provides a 5-year/60,000-mile powertrain warranty and a customer can choose a Vehicle Service Contract (VSC) if their ownership cycle is longer. By requiring that customers trade their Hyundai vehicle after 24 to 48 months to take advantage of the trade-in value guarantee, Hyundai makes its 10-year 100,000-mile powertrain warranty meaningless. While it might improve Hyundai vehicles’ resale values, which helps Hyundai cover the trade-in value guarantee, Honda vehicles’ resale values are still superior.
Where’s the customer benefit?
Honda provides a 5-year/60,000-mile powertrain warranty and a customer can choose a Vehicle Service Contract (VSC) if their ownership cycle is longer. By requiring that customers trade their Hyundai vehicle after 24 to 48 months to take advantage of the trade-in value guarantee, Hyundai makes its 10-year 100,000-mile powertrain warranty meaningless. While it might improve Hyundai vehicles’ resale values, which helps Hyundai cover the trade-in value guarantee, Honda vehicles’ resale values are still superior.
Where’s the customer benefit?
Roadside Assistance
Many people already have roadside assistance through an organization like the American Automobile Association (AAA) or as part of their vehicle insurance. In addition, Honda’s available VSC includes roadside assistance. Finally, Honda vehicles have a proven reputation for exceptional reliability.
Many people already have roadside assistance through an organization like the American Automobile Association (AAA) or as part of their vehicle insurance. In addition, Honda’s available VSC includes roadside assistance. Finally, Honda vehicles have a proven reputation for exceptional reliability.
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