DETROIT (Dow Jones) -- Hyundai Motor Co. (005380.SE) announced a new incentive plan Monday that would allow new car buyers to break contracts and return vehicles if they lose their job or income.

The program is the latest effort to win over jittery U.S. consumers as industry sales hit a two-decade low amid draining confidence and tight credit availability.

With 0% financing programs making an industry comeback, the South Korean company is offering to cover up to $7,500 in negative equity on the lease or purchase of one of its cars or trucks.

If buyers loses their income for reasons ranging from unemployment to death, Hyundai will allow them to return the vehicle.

"Hyundai is the first auto maker to offer a vehicle return program in the U.S. that allows you to walk away from your loan or lease without having to worry about negative equity," the company said on its web site.

The offer comes as consumers become seemingly immune to the rich deals auto makers are rolling out in an effort to bolster sinking sales.

The weakening economy dealt a severe blow to the U.S. auto industry, which is expected to report a steep decline in December sales later Monday.

Industry sales fell 16% through November, a decline that led to widespread production cuts and layoffs and forced Detroit's money-losing auto makers to plead for a lifeline from the federal government.

General Motors Corp. (GM) and Chrysler LLC secured a $17 billion in federal loans last month, though Ford Motor Co. (F) said it believes it can survive 2009 without government help.

The sales slump has triggered an incentive war among auto makers, including Japanese companies that have traditionally been far less generous with deals and discounts than U.S. rivals.

Despite deals ranging from discounts as high as $7,000 on domestic trucks and zero-interest loans at Toyota Motor Corp. (TM) - a rare move for the auto maker - traditional incentives have done little to move the market.

"Some automakers hit new highs in terms of incentive spending this year, but it seems that they reached the point of diminishing returns," Jesse Toprak, senior analyst at Edmonds.com said in a statement from the auto research group.

Hyundai, though its sales are down 10% through November, has picked up market share in the U.S. The South Korean-based auto maker had 3.1% of U.S. sales year-to-date, compared to 2.8% a year ago.

To qualify for the giveback deal, Hyundai owners must have made two scheduled payments on their loan or lease. The company would decide how much the vehicle is worth and if the person qualifies for the program based on his or her circumstances.

Vehicle owners could still be liable for a portion of the value if the amount owed on the car or truck exceeds $7,500 at the time of the return.

-By Sharon Terlep; 248-204-5532; sharon.terlep@dowjones.com.

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