Apr 7, 2009

GM, Ford Quell Job Loss Fears

Are you ready to buy a new car but afraid you might lose your job as the economy flounders? If so, it’s unlikely you’re willing to sign on the dotted line for a five- or six-year payment cycle, and that fact is crippling the sales of new cars. So Ford and GM have decided to do something about it. Following the lead of Korean automaker Hyundai, which launched its Assurance Program months ago, the two biggest domestic-based manufacturers have announced programs that ensure that you can make your car payment -- under defined circumstances -- if you lose your income during the course of your auto loan or lease. The GM plan will also offer up to $5,000 to help you buy a new vehicle if you owe more on the program-covered vehicle than it is worth at trade-in time.  

The Ford Advantage Plan will cover up to 12 months of loan or lease payments (up to $700 per month), while GM Total Confidence will cover nine months of payments (up to $500 per month). Under the terms of both plans, you keep the covered vehicle. Hyundai’s plan essentially enables you to give back the vehicle while limiting your financial liability resulting from that transaction.

The Ford Advantage Plan is available on all Ford, Lincoln and Mercury vehicles (excluding E/F-450 and higher trucks) and is currently scheduled to cover vehicles purchased between April 1 and June 1. The GM Total Confidence program is available on all GM brands but Saab, and it applies to vehicles purchased between April 1 and April 30. Further details on the programs can be obtained at the manufacturers’ Web sites or by visiting a Ford- or General Motors-affiliated dealer. 
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