WALKAWAY In The News

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 Euclid, remembers them saying.

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 Euclid, Cleveland, Atlanta and Fort Lauderdale, Fla.

"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.

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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 Paul Budvitis. "We're easing their mind to go ahead and make that decision. We think we've got the best economic stimulus package of the auto industry."

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 USA, LLC

WALKAWAY USA, LLC (www.walkawayusa.com) is a division of EFG Companies (www.efgcompanies.com), an industry leader in providing innovative performance management solutions and technologies to the retail auto industry. WALKAWAY USA markets and administers WALKAWAY® Protection for Automotive Financing. WALKAWAY is the First and Only Vehicle Return Program™ that protects consumers from financial shortfalls arising from the depreciation of new and used vehicles (negative equity).

Media Contact

Laura Krone
EFG Companies
(972) 445-8341

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