With 2008 behind us…and the new year stretching out before us…many consumers are trying to figure out how to hang on to what they already own and trying to stretch the money that they have to meet their obligations. As you can imagine…getting consumers to go out and spend money at a time when job loss is at an all time high and debt load is always threatening to tip the balance of the family budget is all but impossible.
An automobile company has taken a new tactic…in fact…probably setting a new standard for other automobile companies in trying to get the public to strengthen their confidence in the economy by purchasing a new vehicle. All of the old tried and true tactics such as 0% financing and cash back refund programs are not inspiring the consumers to run right out and add to their debt load in such uncertain times. Sales of new vehicles has fallen since 2007 quite dramatically. Hyundai has tempted the public to purchase through a new sales tactic; one that sort of tempts people to extend themselves financially.
This is fine and good as long as the consumer doesn’t over extend their financial obligations. I suspect other automobile companies to offer something similar to increase their sales. The deal is this…Hyundai is offering to take the vehicle back without repercussions under certain circumstances.
If the vehicle purchaser should lose their job within the first year after purchase…they can return the vehicle and walk away from their obligation up to $7,500. Or if the purchaser should become disabled or lose their income involuntarily, the offer is the same…they can walk away from the loan and return the vehicle.
One thing is probably sure…this will more than likely increase sales…but, one would hope that the lenders have learned a little something-something from the financial crisis and make sure that the consumers that they extend vehicle loans to are in a position to purchase without overextending themselves financially. This absolutely can not be allowed to contribute to the negative situation that this country has found itself in. One thing we do not need is to find that the new deal allows people to put themselves into deeper financial hardship that results in an increase of repo’ed vehicles. Will this sales tactic inspire those in a position to purchase and add to the consumer confidence that businesses and governmental leaders are desperate to see? Only time will tell! What are your thoughts on the subject?