You're fired
What do car manufacturers, an airline company, a mobile phone provider, some of the nation's largest homebuilders and a growing number of apartment firms have in common? They all are offering novel incentive programs to make buying a car or a new home, taking a trip or leasing an apartment more palatable to prospects nervous about their employment status.
Some of these programs allow customers to opt out of their contractual agreements without penalty, if they become involuntarily unemployed and meet certain additional criteria. Others, some of them tied to insurance products, will pay all or a portion of the customer's monthly payments for a set period of time. A few even offer money-back guarantees.
Hyundai Motor Co. was first on the scene with a layoff protection plan in January, just as the U.S. auto industry hit its lowest point in 27 years. The Korean-based car manufacturer gained national attention with a program that allows customers to hand back the keys if they are laid off within a year of leasing or purchasing a vehicle. The company expanded the plan in February, promising to make a laid-off customer's car payment for up to three months. If, after that period, the buyer still is unable to afford the vehicle, Hyundai will take it back at market value and pay off the existing loan or lease contract up to $7,500. The program is managed by Walkaway USA, a subsidiary of Dallas- based EFG Companies, which provides finance and insurance products and support services for auto dealers.
Expected to help reduce vehicle repossessions, Hyundai's program has proven to be a marketing coup, boosting sales,
