Without regard to quality, Hyundai’s misguided moniker, phonetically imitative of Honda has lent the Korean brand the mark of generic inferiority.

Recently, to stimulate sales to cautious purchasers, the company offered a break to debtors who might default on loans due to hardship, such as lost employment. Hyundai will still repossess and re-sell cars when borrowers don’t pay. However, when that sale doesn’t cover the debtor’s full loan balance, they won’t pursue a deficiency judgment for that loss. I didn’t squint to read the fine print, but I’ll take it face value.

Sure enough, Hyundai reported a 14% increase in January 09 sales over the previous year. http://blogs.motortrend.com/6462108/manufacturing/bloody-january-shutdowns-kill-fleet-sales-hyundais-assurance-program-works/index.html

Increased revenue should offset the reduced collections on deficiency judgments. Such collections are often upset anyway when borrowers file for bankruptcy. Thus, forgiveness is good for Hyundai’s accounts receivable. Forgiveness is good for the courts by decreasing their caseload. Forgiveness is good for the borrowers, naturally.

And buyers can get the chance to judge for themselves whether generic drives the same.

Will the brand names follow suit or continue to collect with a vengeance?