EFG Companies announced the re-launch of the product behind the award-winning Hyundai Assurance Program, WALKAWAY Vehicle Return Protection.
This automotive debt-protection product cancels up to $7,500 of negative equity associated with a vehicle purchase, regardless of age, health or vehicle type, giving consumers the freedom to walk away from negative equity without impacting their credit.
After launching WALKAWAY as the Hyundai Assurance program during the Great Recession, Hyundai experienced an 8% increase in unit sales while the rest of the industry declined by 21%. Over the next two years, the manufacturer grew market share by 57%. Since bringing the product to market, EFG has positively impacted the vehicle purchasing decisions with WALKAWAY for more than 826,750 consumers across the United States and Puerto Rico.
WALKAWAY Vehicle Return Protection allows consumers the option to return their vehicle in the event any of these unforeseen life events occur:
- Involuntary unemployment
- Physical disability
- Loss of driver’s license due to medical impairment
- Self-employment personal bankruptcy
- Accidental death
- International employment transfer
“Successful dealerships are defined by how they support their customers,” said John Pappanastos, president and CEO, EFG Companies. “This has never changed. What does change is the manner in which that support is delivered. Today, dealers have the opportunity to provide customers with extremely relevant and valuable protection regarding their finances and their ability to live their daily lives. This opportunity can serve dealerships as a true point of differentiation and avenue for revenue growth.”
One of the biggest threats to vehicle sales and auto loan volume is the uncertainty of whether today’s income will be there tomorrow. According to the Federal Reserve System Board of Governor’s latest Report on Economic Well-Being of U.S. Households, in 2018:
- 39% of adults would have difficulty covering an unexpected expense of $400.
- 12% of adults would have been unable to cover an unexpected $400 expense at all.
Considering this report was published at a time when the market was closest to its highest economic level, it illustrates the income fragility among the American public that we are seeing now as a result of the COVID-19 pandemic. On Thursday, April 2, 2020, the U.S. Department of Labor reported that unemployment claims rose to 6.6 million, shattering the Great Recession peak of 665,000.
WALKAWAY gives dealers an effective defense when it comes to declining consumer confidence by:
- Giving consumers the motivation and confidence to purchase their next vehicle
- Increasing customer satisfaction and driving repeat business
- Preserving their customers’ credit for future purchases
Since the product’s inception, EFG has paid out a total of $3,890,062 in WALKAWAY claims, helping consumers at a time when they need it most.
“I thought I would never have to use the WALKAWAY program,” said WALKAWAY contract holder, Monica Lagarin. “I lost my job and I have bills to pay. When the claim was approved and I received payment relief, I was able to manage my other bills without having to worry about my car.”
