Hyundai Buyback Program and Award Win Attract Shoppers, Edmunds.com ReportsBy Michelle Krebs January 15, 2009
By Michelle Krebs
While many incentive programs seem to be falling on deaf ears with consumers, Hyundai's Assurance Program that allows buyers to return the vehicle if their circumstances change is resonating, according to an Edmunds.com analysis.
The Hyundai Assurance program launched earlier this month has caused purchase intent for Hyundai vehicles to soar 15 percent during initial reaction to the program and has remained at least 7 percent above its seasonal norm ever since, according to Edmunds.com's analysis.
A second shot in the arm for Hyundai purchase intent came Sunday when its flagship Genesis luxury car was named the 2009 North American Car of the Year at the Detroit auto show. The award caused the brand's purchase intent to soar 31 percent above normal levels.
"There's no telling the long-term impact of Hyundai Assurance, but it's a noteworthy start," said Edmunds.com Senior Analyst Dr. David Tompkins. "We've seen a hike in purchase intent for all Hyundai vehicles except the Sonata."
The Hyundai Assurance program consumers who purchase or lease a new Hyundai in the next 12 months can return the vehicle without a significant penalty if they lose their income due to a job loss or medical situation within a year of the transaction. Hyundai has accompanied the program with a massive and compelling advertising campaign.
The North American Car of the Year award is different from most other awards as it is presented by a group of 50 journalist jurors from across North America who cover all aspects the automobile industry. Most other awards are presented by individual media outlets.
Editor's note: Past research has shown that Edmunds.com visitors who perform specific tasks on the site are extremely likely to purchase a vehicle within six weeks of visiting the Web site. Edmunds.com collects this data and reports it as "purchase intent."
Photo by Hyundai
Posing in front of the Hyundai Genesis, Dr. H. B. Lee, vice chairman of Hyundai Motor Company (left), and John Krafcik, Hyundai Motor America acting president and chief executive officer, accept the award for the 2009 North American Car of the Year.