Hyundai offers trade-in guarantee on used-car value
* Program comes after other U.S. warranties drive sales
* Hyundai seen poised to take sales amid tight car supply
NEW YORK, April 20 (Reuters) - Hyundai Motor Co (005380.KS) will offer U.S. consumers a guarantee that Hyundai vehicles will hold their value over a four-year period when they are traded in for a future vehicle from the Korean automaker.
The trade-in guarantee is the latest in a series of warranties and other pledges from the Korean automaker that have helped it build sales momentum in the U.S. market in recent years.
Under the new Hyundai Assurance Trade-in Value Guarantee, Hyundai buyers will be guaranteed that any model that they purchase will hold the value forecast for it by the third-party Automotive Lease Guide.
The program guarantees that Hyundai vehicles will be worth at least the value forecast at the time a customer trades in for a subsequent purchase at a Hyundai dealership.
The program, which was announced at the New York auto show on Wednesday, takes effect in May. The guarantee would not apply if Hyundai owners decided to trade in for a different car brand or other conditions were not met.
Details of the eligibility requirements of the program had not been posted on the Hyundai website as of Wednesday afternoon.
Hyundai has been one of the fastest-growing brands in the U.S. market in recent years. Its sales shot higher by 24 percent last year while the overall market rose only 11 percent.
In 2009, the Korean automaker won consideration from car shoppers by offering a guarantee that they could return purchased vehicles if they lost their jobs during the depths of the recession.
Hyundai's fast-growth period goes back to its 1998 introduction of a 10-year, 100,000-mile powertrain warranty.
Hyundai executives have said that their focus is to reshape consumer perceptions of the brand by addressing lingering concerns about quality and how well vehicles will retain value.
"While Hyundai's depreciation is now among the lowest in the industry, (this program) will remove many of the barriers and concerns about vehicle ownership," Hyundai's North American chief executive, John Krafcik, said in a statement.
Analysts have said Hyundai is one of the automakers best positioned for gains if sales for Toyota Motor Corp (7203.T) and Honda Motor Co (7267.T) lose momentum in the coming quarters because of limited production and parts shortages after the March earthquake in Japan. (Reporting by Deepa Seetharaman, writing by Kevin Krolicki; Editing by Steve Orlofsky)
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