Guaranteed trade-in value is newest marketing concept
Hyundai Motor America, which launched one of the most successful marketing efforts in recent years with its offer to let buyers walk away from new cars if they lost their jobs, is at it again, this time, guaranteeing customers a trade-in value for a vehicle at the time of purchase.
The program will launch at Hyundai’s 800 U.S. dealerships on May 1 and guarantees trade-in values for two to four years. “One of the things we always try to do is understand what is on a customer’s mind, and what they worry about,” John Krafcik, CEO & president, said. “And frankly, depreciation is a big unknown.”
Analysts say it’s a bold move that could help boost new car sales by taking the uncertainty out of depreciation a reason some people decide to lease and coax new buyers to try out the Hyundai brand.
Based on its recent success and the rising resale value of its products, the program isn’t likely to cost Hyundai much, but it does raise the bar for other automakers who may have to follow suit.
The new trade-in program only covers vehicles whose trade-in value drops below the guaranteed price, Hyundai said. If the value is higher than the guaranteed price at trade-in, the difference can be applied to a new Hyundai car. Hyundai took back only 350 or so cars under its lost-my-job offer of a few years ago.
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