Hyundai's latest offer: Cheap gas

A new promotion allows Hyundai buyers to lock-in gas prices at $1.49 a gallon for a year or take $1,000 in cash -- most will probably take the cash.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Peter Valdes-Dapena, CNNMoney.com senior writer

hyundai_sonata.03.jpg
2009 Hyundai Sonata
J.D. Power: Top quality cars
These new vehicles have the best quality right out of the gate, according to owner surveys.

Find your next Car


NEW YORK (CNNMoney.com) -- With gas prices rising and car sales in the dumps, Hyundai is offering new car buyers gas at $1.49 a gallon for a year.

The offer is called the Hyundai Assurance Gas Lock promotion. As with the Hyundai Assurance program the carmaker instituted in January which enabled buyers to give back their car at no cost in the event of a job loss, the Korean automaker is again using promotions aimed at easing car buyers' economic concerns.

As an alternative, buyers can take a $1,000 rebate instead of the gas incentive.

To use the gas incentive, Hyundai owners would receive a special credit card. Gas purchases billed to that card would be passed through to the customer's regular credit card at a rate of $1.49 a gallon with Hyundai paying the difference.

The gas rebate comes on top of any other unrelated rebates a customer qualifies for.

Hyundai expects gas prices to reach about $2.70 a gallon in July with some areas experiencing $3.00 a gallon gas.

With gas currently at about $2.60 a gallon, Hyundai America's vice president for marketing, Joel Ewanick, expects about a third of buyers to take the gas card instead of the cash.

With gas prices at $2.70, someone driving a V6 Hyundai Sonata, one of its most popular models, for 12,000 miles over the course of a year would save about $580 with the gas price promotion, given the Sonata's EPA-estimated 25 miles per gallon fuel economy in combined city and highway driving.

Gas prices would need to average about $3.60 a gallon or more for a typical Sonata buyer to benefit from the gas card instead of the cash.

The gas cards would presumably be more attractive to purchasers of larger Hyundai vehicles like the Hyundai Veracruz seven-seat crossover SUV which gets 18 mpg.

Chrysler had a similar promotion last summer when gas prices topped $4 a gallon. Customers could get a year's worth of gas at $2.99 a gallon.

Ironically, few buyers of large Chrysler SUVs like the Dodge Durango took the gas card, said Chrysler spokesman Rick Deneau. The gas cards were most popular with buyers of small cars like the Dodge Caliber, even though those buyers would get little or no financial benefit, he said.

Hyundai credits its Assurance guarantee, which protects buyers against job loss, with helping boost sales this year.

"We know of a 12% lift, which is way beyond our expectations," Ewanick said.

Hyundai will announce its June sales on Wednesday and industry trackers at Edmunds.com expect them to be down 18% from the same month last year, but that would be much better than the overall industry which is expected to be down 28%. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Most 'one percent' moments of 2014 This year was all about more money, more problems. Here's a look at the trials, tribulations and triumphs of the 1% over the last year. More
6 products to keep the skies friendly Plane travel can be stressful, especially during the holidays. These things can help keep the peace among travelers. More
2014: Helluva good year for stocks The bull market has been going for 2,115 days. If you put you're money in stocks, it's been a very happy year. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.