WALKING TALL AGAIN
By Brandon C. Baker - The News-Herald
Apr. 27, 2009 –
Before
Rick Case Automotive Group began offering the WALKAWAY Protection program, Corky Allison heard a phrase that
seemingly became more popular as customers continued perusing his showroom.
"I would if I could," Allison, general manager at
Rick Case Honda in
The potential buyers meant they would purchase a car if they
weren't concerned about their financial future. The concerns, of course, are
rooted in an economy where workers continue losing jobs while employers seek
ways to cut costs. "The apprehension of losing their job is No. 1 on their
minds," Allison said. "A lot of times, there's nothing good you can
tell that person. You don't know what life is gonna
bring in six months."
Now that Rick Case's 16 dealerships offer WALKAWAY,
the worries have scaled back a little. That's because the program lets them
literally walk away from a loan if they do get laid off. Depending on the
existing amount of negative equity, a buyer struck with a life-altering event
could walk away with an unblemished credit report under the program.
"It's been such a huge success since it came out,"
said Case, who owns dealerships in
"What it does is give them the security to feel that if
they go buy a car, truck, van or SUV and lose their job, they can bring it back
without costing them anything. This is why this is the best program."
Case reaped the benefits of WALKAWAY
early because his automotive group has six Hyundai dealerships. Hyundai remains
the only manufacturer with an exclusive deal to offer WALKAWAY
to customers. WALKAWAY, a
division of Irving, Texas-based EFG Companies, announced its Hyundai
partnership in January.
Liking the results, Case approached WALKAWAY
to become part of its dealer program, essentially extending the protection to
Case's customers at his Audi, Honda, Mazda and Mitsubishi dealerships. Buyers
can take advantage of the program on new and used vehicles.
WALKAWAY provides
marketing, Web site work and implementation for those in the dealer program.
Plus, Case didn't mind seeing Hyundai-WALKAWAY
commercials during telecasts of big-ticket events like the Super Bowl and
Grammy Awards.
So, how has this helped Rick Case dealerships?
"The industry was down about 38 percent for the first
quarter, but Hyundai's sales were up nationally," Case said. "Our
sales are up about 35 percent. I think that's a pretty good indicator."
Twelve complimentary months of WALKAWAY
coverage is offered for every vehicle financed or leased at Rick Case
dealerships, Allison said. It covers up to $7,500 in negative equity, and a
Standard package is available to cover up to $7,500 for up to 84 months. For
$559, the Standard version also includes three months of job relief payments
for involuntary job loss.
An Elite version of WALKAWAY
also is available for up to 84 months, with six months of payment relief.
It covers up to $15,000 in negative equity and costs the
buyer $1,179.
In addition to involuntary unemployment, WALKAWAY's definition of "life-changing
circumstances" includes:
·
Loss of driver's license due to medical impairment
·
International employment transfer
·
Accidental death
·
Self-employed personal bankruptcy
"Dealers are experiencing people coming in looking for
cars and delaying the to-ink transition," said WALKAWAY President
WALKAWAY also said
the program is available to everybody, regardless their age, health, employment
record or amount financed. It's not difficult to see why some might deem it too
good to be true.
"I've got it all here in writing," Allison said
when asked what he'd tell the leery.
WALKAWAY will have
to contend with recently announced job-loss protection plans from General
Motors and Ford. The programs make monthly payments for buyers after they lose
their income.
The Ford Advantage Plan covers up to $700 on new cars for a
year, while the GM Total Confidence plan provides up to $500 for nine months.
The GM plan can be used up to two years after the purchase,
and can begin three months after a driver buys a car. Ford buyers can use their
plan up to a year after purchase and are required to make only one payment
before the plan can be used.
Still, Budvitis believes WALKAWAY
will be the plan to usher in a new era of financing.
"There are things that happen over the course of
history with products that create a tipping point in those industries," he
said.
"We believe WALKAWAY
set a gold standard for how consumers protect their family when making large
purchases. We see this product really changing the face of consumer
financing."
About WALKAWAY
WALKAWAY
Media Contact
EFG Companies
(972) 445-8341
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