Dollars and Jens
Sunday, January 04, 2009
Hyundai and risk aversion
I just saw a TV commercial indicating that Hyundai is making the following offer: if you buy a car from them and lose your job within the next year, you can return it. Hyundai sells a product that is likely to be constitute a large on-going financial commitment to many potential customers, and they can offer insurance against a risk that might dissuade people in a risk-averse environment from making a purchase. Particularly in this environment the risk is likely to be cheaper to Hyundai than it would be for the buyer. This strikes me as a great idea.

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