We take a look at the Hyundai Grace Bus and point out a few details which we see as need for owners to know.
The Hyundai Grace Bus is a discontinued model meaning it is no longer manufactured at the Hyundai Car Productions. The mass production for the Hyundai ceased in 2004 but the remaining vehicles still continue to sell especially in Vanuatu.
Currently the most popular vehicle in Vanuatu used for public transport services around Port Vila, Luganville and Tanna but lately there seems to be a lot of things going wrong with the already discontinued vehicle.
Purchase and Resale Prices
The Hyundai Grace bus in Vanuatu is fast selling because it is cheap. Not only do owners feel the price is affordable, they also get a better deal from car dealers with loans without interest. Hyundai dealers have limited space, and are anxious to clear these cars from inventory and reduce their carrying costs. The discontinuation of production has also seen resale plummet and owners are able to purchase these vehicles at lower prices than other models.
However what a lot of owners do not understand is that buying a discontinued model is essentially trading a low price today for uncertainty tomorrow. A lot of Hyundai owners in Vanuatu look forward to driving the vehicle but are not concerned about resale and trade-in values however it is important to note that the normal rules of depreciation won’t apply to discontinued models.
Even though the price seems right, as a discontinued model, the vehicle to be sold above one million vatu is not realistic given the market it came from ceased to exist since 2004. The asking price for a Hyundai bus in Vanuatu is VT2.7 million and dealers make about 100% profit margin. The selling price is something the Government needs to address as discontinued vehicles cannot be valued the same as other vehicles still in production.
One of the bigger fears among potential buyers is the future availability and cost of spare parts. In Vanuatu we have seen owners over come this because some brands do share parts. Even with the shared parts, finding parts for the Hyundai Grace is becoming an issue as parts for a discontinued model, even one still available in other countries, can be very difficult to find and at times are indeed expensive.
Parts that are made by the auto manufacturer and its suppliers are referred to as original equipment manufacturer (OEM), or stock, parts. Many dealers will continue to carry these parts for several years as the discontinued cars are phased out. But at some point, it will become difficult and expensive to buy original parts.
Hyundai parts are no longer available or are too costly this days in Vanuatu and dealers normally order extra parts but it is becoming expensive. The good news, aftermarket parts will usually be available for years following production stopping but for a country like Vanuatu the parts when shipped can be become an extra cost which does make maintaining a Hyundai quite expensive at times.
Warranty and Servicing
If the brand is sold to another company, the warranty will transfer to the new company. The warranty of a discontinued model will be honored by the parent company and that is what happens within the Motor Industry, however that is not the case for the Hyundai Grace dealers here in Vanuatu. There is no warranty for the Hyundai Bus and Insurance do not cover much here in Vanuatu.
While your car is still under warranty, use only OEM parts for servicing; using other parts may void the warranty but that is not a case for the Hyundai as in Vanuatu it is something like one part for all and does put owners at risk when using any part seemed fit for their vehicles.
The Bottom Line
There are clearly trade-offs to consider when buying a discontinued brand. The Vanuatu Government must emphasizes that discontinued models may be ‘great’ buys at the time, but the upfront savings lose their luster twice as fast on the resale market, and pose a potential liability in an insurance total loss value.
It is also important to note that some banks will refuse to finance a ‘new’ discontinued model. The amount of disruption to owners of discontinued model is huge.
In Vanuatu this bus is a problem, and will continue to become a problem. With lack of proper safety features and quick sale tactics by car dealers, the Hyundai Grace has indeed been cause for a lot of accidents and lately been involved in fires breaking out from the vehicle. The vehicle is not reliable for public transport and should be banned from being imported.
The below statement does shed light on the Hyundai bus and is described as “was” a passenger vehicle that ceased in production in 2004 and but it is now being sold in Vanuatu for far more than its worth.
The Hyundai Grace was a passenger car model from the South Korean automotive manufacturer Hyundai and was based on the 3rd generation Mitsubishi Delica , which was offered as Mitsubishi L300 II in Europe . The unladen weight of the car is stated as 1522 kg.
In 1993, the model was revised with a modified front and interior. From 1993, this model was gradually introduced into Europe as Hyundai H-100 . From 1994 to 1999, the H-100 was also offered in Germany with a 2.4-liter gasoline engine and a 2.5-liter diesel engine with 57 kW (78 hp).
Despite favorable prices the market success in Germany was modest. While the Hyundai H-1 replaced the H-100 in Western Europe , it was offered in Eastern European countries such as Russia, alongside the Asian market until 2004.