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Trading up for the newest model used to be the norm, but a faltering economy and widely improved reliability are both stretching how long consumers keep their cars.
Last year in May, Hyundai launched a guaranteed trade-in program to pay a fixed value amount to buyers of new Hyundai vehicles if those buyers wanted to trade-in those vehicles three of four years later. That program officially ended last month, but the Korean automaker will retain it for their upscale models including the Equus sedan, Genesis sedan, and Genesis coupe.
“It was a marketing program and we wanted to bring a spotlight on the strength of our residual values, and it did its job,” said John Krafcik, CEO of Hyundai Motor America.
The revamped program will require buyers to service their vehicle at a Hyundai dealership as well agree to buy another Hyundai when they take advantage of their guaranteed trade-in value. Those values are set by ALG, a consulting company that estimates the market value of used vehicles.
Hyundai currently is ranked number-3 in ALG’s mass-market 2012 Residual Value Awards. This is a steep improvement compared to their number-14 ranking back in 2007.
ALG representative Mike Cooperman also mentioned that the Equus sedan has the third-best residual value in the premium-luxury segment behind the Lexus LS460 and the Jaguar XJ. The Genesis sedan is currently in second place for residual value in the full-sized car segment behind the Nissan Maxima.
[Source: Automotive News]