Hyundai set to roll out guaranteed resale plan for other models

First it was extended warranties, then capped price servicing. Now it seems guaranteed resale prices will be the next marketing salvo fired by a major brand.

Hyundai chief operating officer John Elsworth says the company is looking at extending the resale price guarantee on its high-end Genesis to other models.

"We're looking at different financial products for the back end of the year that eliminate the resale risk for people - guaranteed future value stuff," he says.

Our research shows that with our resale values, the reality is better than the perception

"We have one of those currently on Genesis and we'll roll out later in the year with different models, some of the higher volume models.

"Our research shows that with our resale values, the reality is better than the perception," he said.

That is part of the reason the manufacturer has resisted the temptation to follow the Japanese brands' price cuts as a result of the recent Free Trade Agreements.

"That's not a game you want to play, rolling back prices," Elsworth says. "Our plan is that we progressively roll out feature upgrades and we don't charge for them."

Hyundai won't follow the lead of sister company Kia, which woos customers with an industry-leading seven-year warranty, and instead will extend its capped price servicing to the life of the vehicle rather than the first three years. "We have a different strategy ... our lifetime service plan," he says.

That includes covering the difference between the retail price of services and the amount charged through the capped price plan. "The first five years is subsidised by us."

The company will look at a city-style ute that was previewed as a concept earlier this year.

Elsworth admits the company is still no closer to filling a couple of gaping holes in its line-up — a full-size one-tonne ute and a compact SUV to rival recent arrivals from Mazda, Honda and Renault.

The compact SUV is still a couple of years off and the one-tonner is the subject of continuing discussions with head office. Elsworth says the company will look at a city-style ute that was previewed as a concept earlier this year.