Hyundai: Can't Make Your Car Payment? Just Give it Back

Korean automaker Hyundai says it has "got your back," and has launched a new promotion that will allow consumers to break contracts and return recently purchased cars if they lose their jobs or incomes.

(David Zalubowski/AP Photo)
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Hyundai Auto Sales

In a statement released last week, Hyundai Motor Co. and its affiliate Kia Motors Corp. cut their joint 2008 sales forecast by 12.5 percent and said they had sold about 4.2 million vehicles, down from the 4.8 million the company had predicted.

The two companies, which dominate the South Korean car industry, form the world's fifth biggest automotive group but represent only a small piece of the U.S. auto market.

As of last month, Hyundai was responsible for 3.1 percent of auto sales in the United States.

In order to qualify for the promotion, owners have to have made two payments on their loan or lease. According to a company statement, Hyundai would then decide the value of the car and whether the owner qualifies.

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Owners could still be liable for a portion of the value if the amount owed on the vehicle exceeds $7,500 at the time of the giveback.

"I think it's a fascinating idea because anything that can boost consumer confidence is worth a shot," Nerad said.

The program could also save people's credit rating, Nerad said.

"Instead of having your car repossessed and damaging your finances and credit rating, you get to return it -- no questions asked," he said.

Some of those Americans still in the market to buy a car say the offer is at the very least intriguing.

"I'm in the market for a new car and Hyundai looks like a deal," said Sam Friedman, 24, an accountant from New York.

"Despite the economy, I'm still looking. I was originally thinking about buying American and I thought it was important to buy American, but once I saw the Hyundai deal it is something I would take into consideration," he said.