Earning Velocity Points on a new Hyundai: is it worth it?
Up to 100,000 points on offer, but be careful of the fine print.
Hyundai has an interesting offer for Virgin Australia frequent flyers: up to 100,000 Velocity Points when you buy a new SUV. SUVs are consistently the most popular cars in Australia, so it's a deal a lot of people will consider.
Big-ticket points offers like these are always tempting. However, as we've seen with home loans offering frequent flyer points, the points you earn may actually prove to be very expensive. So how does this one stack up?
The deal runs from 4 January to 31 March 2019. You can score points if you buy new or demonstrator models of the following vehicles:
Unsurprisingly, the top-of-the-range Santa Fe earns a lot more points than a basic Kona or a mid-range Tucson (which received a score of 79% in our aggregate review, incidentally). The 100,000 points on offer for the Santa Fe is similar to what you'll potentially get in frequent flyer credit card deals.
That said, the cost of acquisition is a lot higher. For instance, you'll pay at least $27,990 to earn 50,000 Velocity Points buying a basic Kona. Currently with the Virgin Australia Velocity Flyer Card, you can earn 60,000 bonus Velocity Points for a $4,500 spend.
Bottom line? This kind of deal can make sense if you're considering a new SUV and a Hyundai is on your shortlist. If the car meets your needs, the extra points are definitely attractive.
However, it's not the easiest way to earn that number of Velocity Points if that's your main goal. A credit card deal can do that for less, as well as letting you earn more points through your ongoing spending. Come to that, buying 50,000 Velocity Points directly from Virgin will only cost you $1,172, though that's not something you can do repeatedly (see our full guide to buying Velocity Points to learn more about the rules that apply.)
There are two other issues to be aware of. The terms and conditions for the Hyundai deal note that you're not eligible for the points if your vehicle isn't delivered before 30 April 2019. In practice, that means if your new car is held up at the docks for some reason, you might miss out. It's unlikely, but worth bearing in mind if you're making a late-March purchase.
Secondly, you'll receive the points up to 60 days after you sign the vehicle contract. So you won't be able to book any flights using your points until that happens.
And a final reminder: if you are buying a new car, make sure you shop around for finance to get the best rate and do the same for your car insurance.
Angus Kidman's Findings column looks at new developments and research that help you save money, make wise decisions and enjoy your life more. It appears regularly on finder.com.au.
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