By on May 3, 2011

Hyundai’s latest Assurance marketing technique, which guarantees resale values on all 20111 model-year purchases, is already being hailed as the latest in a line of creative, zeitgeist-appropriate incentives. The one downside of guaranteeing residual values: well, people are free to draw their own conclusions from them. For example, it seems safe to say that the Azera and Accent should probably be replaced fairly soon, as their weaker resale values make them stand out from an otherwise extraordinarily consistent lineup. What’s that you say? The new Accent was announced at the same time as the resale guarantee? And an attractive new Azera replacement will be launched within a (the?) year? Er, carry on then.

In all seriousness, whenever Hyundai comes out with a new “Assurance” program, I’m sure a number of other brands look at copying elements. The genius of this latest program, however, is that it only really works if your entire lineup has been updated in a recent and consistent manner. Imagine a chart like this for certain other brands, and you’ll realize that the benefits of a strong and (possibly more importantly) consistent product line can be far reaching indeed.

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5 Comments on “Hyundai’s Long-Term Values: Mostly Created Equal...”

  • avatar

    Very fair conclusion. I would say Ford has a strong and consistent line up with the new Fiesta, new Focus, soon to be replaced Fusion (which is still doing well), Taurus, Mustang. Honda could also do it since they have good residuals.

    Subaru already does this, I received a letter giving me a guaranteed value on my 2006 Legacy wagon.

    One other point is – what is the small print. If it is hard to qualify (any damage, keep your car more than 4 years, mileage etc) then very few people would get to take advantage of this. Thereby reducing the cost to Hyundai.

  • avatar

    So how do these numbers compare to the ALG predicted residual values for Hyundai’s lineup?

  • avatar

    A few interesting items to note.

    It doesn’t mention who is doing the resale value, but mentions a 3rd party company. Any idea on how these items hold up to other makes? To me, it doesn’t look better than other projections.

    I don’t see anywhere talking about mileage.

    You must have all of your work done at Hyundai Authorized dealers.

    You must finance the next vehicle through Hyundai Motors Finance.

    I will say this for Hyundai. This is one good retention plan, but I am thinking it will be an expensive one for the customers.

  • avatar

    Wake me when it’s 20111.

  • avatar

    This is nothing new…Ford offered a program just like this on the Merkur Scorpio. They basically guaranteed that it would hold the same percentage of value through the program period as a Mercedes 190E.

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