Hyundai Guarantees Resale Values
Hyundai has received a lot of attention recently for improvements in its product lineup, but as TTAC has proved, it’s actually the brand’s non-product innovations that can be most closely tied to its recent success. Hyundai’s biggest sales growth in the US market has come on the heels of its 100k mile warranty and its Assurance buy-back program, rather than the introduction of any new car. And so, although Hyundai has revealed its new Accent (which we already showed you), the big Hyundai news coming out of New York is the brand’s latest Assurance feat: a trade-in value guarantee. The program rolls out in May, and Hyundai USA CEO John Krafcik tells the DetN that
Depreciation is a big unknown. It’s like giving one of the big benefits of leasing, but you’re still owning the car. We’re already one of the highest brands in loyalty, and we think this will help.
It certainly can’t hurt.
More by Edward Niedermeyer
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Hyundai keeps pushing the marketing envelope. This is a brilliant move as it encourages brand loyalty over the long haul, will actually cost the company very little and expresses real confidence in the product.
Hyundai continues to impress not only with the better-every-generation product pipeline, but also with agressive and effective long-term marketing programs. Any idiot can throw temporary cash on the hood, but few companies have had the guts to offer the kind of customer mental pain and anguish reducers Hyundai keeps coming up with. Long warranties addressed the customer's fear of getting burned by an unreliable vehicle. The Assurance buy back program addressed customer's fear of loosing their jobs. Now Hyundai is addressing the fear of getting stuck with a bad trade in value. While most companies keep finding ways to exacerbate the fears of consumers, Hyundai keeps finding was to ameliorate them. Hyundai is clearly playing the long game. Most auto companies are stuck playing endless rounds of get-me-through-the-quarter.
Seems to me that I don't see any "domestic" brands on the top of that residual value list. Personally, I'd worry less about resale value for a new Hyundai or Kia than for a Chevy or Ford or certainly a Chrysler. If this newer engine technology proves as reliable as we expect, then Hyundai has developed an entirely new brand identity over the past year. They are no longer just cheap cars with good warranties, but highly-styled cars with great fuel-economy and tons of features for a great price. This is why I like to buy 2-year-old cars. Still under warranty, half the price of a new one. My dad finally followed my advice and bought a 2 year old Buick Lucerne instead of the new one he was eyeing. It was a CPO car with 21k miles on it from a Buick dealer and he still paid only 50% of the original MSRP. I'd hazard to guess that he'd be hard pressed to find a 2 year old Sonata with 21k miles in it next year for only $11k.