Still, I think in this case that even if the motives were financially driven (i.e. drum up business, hedge bets, etc.), the result is a sympathetic program.

I guess that makes me an “ends-justifies-the-means” guy.

Which is part of my problem, I start people with A's and they typically lose my respect. My wife on the other hand starts everyone out with an F and they have to EARN her respect. We're beginning to meet in the middle, however, I'd still say I'm pretty naive.

I worked for a large corporation which everyone always said was evil (not the specific company, corporations in general). In some sense the “evil” was borne out (fbi? firing? etc), but the people there I will never forget. A lot of very smart wonderful people.

My point is (I am long winded some times huh?) that a corporation is not necessarily trying to “trick” someone with this. They, ultimately, can't lose money either right? So it should work for both parties…theoritically…or I'm just being naive again.

So, the possibility to trade out of a loan (possibly underwater) and into a new car with a safety net would appeal. That would leave at least one car if the Hyundai has to go back to the dealer.

You're right, it's a clever hedge that is unlikely to do much damage to the company, but I wonder how the dealers are incented. Car dealers are taking it in the shorts now too, so what happens if their inventory spikes when a plant closes and all those Hyundais come home?

It's interesting stuff.

Anyway, I like the human element to the promotion, but the cynic in me knows there's likely to be a catch. It's just good marketing. I wonder how the internal meetings went to get it approved . . .

Think about what most people do when they buy a car:
step 1: give dealership old car as a trade in
step 2: take out loan for whatever amount you still owe
step 3: take new car home
step 4: make payments

If you are like most people in the US if you lose your job you still need a car – at a minimum to get to the unemployment office and for job interviews. So if you do lose your job you will either keep the (no longer new) Hyundai you recently bought, sell it and buy something cheaper or take advantage of this offer.

If their cars maintain their value well then you won't bring it back to Hyundai – you'll sell it privately and buy something cheaper.

If their cars lose their value quickly it's not worth it for you to sell it so you might think about bringing it back to Hyundai, but remember that you still need a car. A car which you'll have to buy outright or finance, and you likely won't get good financing terms (if any) if you don't have a job? In the end for _most_ people it will probably be cheaper to keep keep the Hyundai and make the remaining payments.

Either way you didn't bring it back to Hyundai.

As long as Hyundai sells more cars than they would otherwise have sold they can eat the loss on the 1 in 1,000 people that do take advantage of the offer. And that loss, as you mention above, is capped at $7,500.

Clever, clever marketing.

I saw the same ad last night. I thought it was a pretty awesome offer. I am a might bit lazier than you and didn't go read the fine print though. Regardless, it definitely gives the impression that they 1) appreciate the investment (in money) buy a car entails and 2) actually care about you, the customer.

Obviously #2 is #1 on my list. If I were in the market I would definitely check out the cars. I've driven one as a rental and I've seen the new Genesis (their high-end model) which is pretty sweet. The people that own them aren't VW people (aka fanatics, sort of like Mac people but more practical in nature.

Anyway, I have no idea what I'm trying to say other than I liked the offer and hope that it does bring them more business and the bean counters don't “technicality” customers to death on it.