Jan 22 2009

Lose your job? Return your car (??)

I saw a commercial from the folks at Hyundai advertising a deal where you can return your car if you’re facing financial hardship. According to their website, if you buy or lease a new Hyundai and lose your income or license, become physically disabled, die, or a few other things,you can give your car back to the dealership and they’ll pay up to $7,500 in negative equity (you’ll pay the difference). It only counts for the first year of having your car.


They’re acknowledging that with your purchase of a new car, you’ll likely have negative equity in it right away. If you were to try to privately sell your car in that first year, you probably wouldn’t get enough money for it to repay your loan. If your car has depreciated more than $7,500, you’d be responsible for the difference.

And, they’re acknowledging that if you lose your income, having a car payment is going to make your life a lot more difficult. It’s easier to not have a car payment during those times.

But, if you lost your job and had to return your car, then you’ll be jobless and without personal transportation. That might make getting a new job that much harder.

Instead of buying a brand-new car and not being certain you’d be able to pay for it, why not buy a cheaper car? Not everyone can pay cash for a car — even a $1,000 model. But, taking out a loan for just a few thousand dollars is going to be much easier to quickly repay than borrowing $20k for a car.

P.S., I really intended to blog more this week! I’ve just been so wiped out with my baby lately, that all we do is eat and sleep. Thanks for subscribing to my blog to see when I do update, and thanks for your patience!

7 Responses to “Lose your job? Return your car (??)”

  1. Hi Kacie–Congratulations on that sweet new baby! I’ve been reading about your sleep deprivation and thought I would suggest “Babywise” by Anne and Gary Ezzo. Now, a disclaimer, they can be a little “out there” and have had their problems (theologically and with their church) but their sleeping schedule works! I promise! I have never known one person who has stuck with it and followed it carefully, for whom it failed.

    I am the proud mom of 4! Each one of my children was sleeping 12 hours a night by 9 weeks of age. It was heaven! You could probably find it at the library. Give it a try with an open mind. You’ll be thankful you did, I promise! And if you have any questions, feel free to e-mail me. I’d be happy to help!

    Hope you don’t mind my totally unsolicited advice. Enjoy that sweet baby!


  2. Yup, I saw this ad and I thought it was kind of silly. I think it actually scares people away from buying a car from them. It’s very pessimistic.

    I need a job now’s last blog post..Is your boss crazy?

  3. Don’t worry about not updating! We’ll still be here when you’re ready and we all totally understand! Do what you need to do! :)

  4. In response, :)
    I definitely think that’s true. Alaskans are more prepared and expectant for such temperatures and weather that we really can’t hold it against everyone in the Lower 48 :)

    And I can’t wait for spring either!!

  5. They have to do anything possible right now to start moving some cars.

  6. It seems with the credit crunch these car dealers are really trying to find one way to compete with each other and to make sure they are the ones selling cars.

    This is actually quite an interesting selling point, I wonder if they will sell any vehicles as a result :)

    Steph’s last blog post..Starting Your Home Vegetable Patch

  7. I wonder how long Hyndai will go on before they start to have to cut down? On top of that they arn’t the most reputable company in terms of quality. You may end up returning the car for another reason then the economy.

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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