Ford, GM join Hyundai in lose your job, keep your car programs

Ford, calling its Ford Advantage Plan “best-in-industry” will cover payments for up to 12 months on any new Ford, Lincoln or Mercury vehicle if customers lose their jobs. The program also offers a zero percent loan on “select Ford, Lincoln or Mercury vehicles.” Ford will also be working with dealers supporting local charity programs.

 

Details of the Ford Advantage Plan have not been posted yet on ford.com. Check back at that website or see your local dealer for details.

 

The GM plan will give purchasers payment protection for first 24 months of ownership. If a new owner loses his or her income, General Motors will make up to nine payments for up to $500 per month.

 

General Motors also covers the value of a GM car by guaranteeing that the customer won’t be “upside-down” on the vehicle loan. Once a buyer of a General Motors product is halfway through a finance contract, the customer qualifies for “Vehicle Value Protection.” As GM explains:

 

“For example, on a 60-month contract, you become eligible after the 30^th month. Much as we've seen home prices decline in this tough market - and homeowners may owe more than the current resale value of their house - 'Vehicle Value Protection' provides peace-of-mind for customers when they want to go purchase another GM vehicle.”

 

The General’s “Total Confidence” plan also includes an impressive 5-year/100,000 mile powertrain transferable warranty with a one-year subscription to OnStar as a sweetener.

 

More information about GM’s plan can be found at gmconfidence.com.

 

By protecting a customer's payment, investment, vehicle and family, we are reinventing the customer experience," says Mark LaNeve, vice president, GM North America vehicle sales, service and marketing. "The 'GM Total Confidence' plan addresses today's most pressing concerns for new car buyers ... we asked customers what they wanted, and simply put, this package is it."

 

Says Ken Czubay, Ford vice president of sales and marketing, “Consumers remain anxious about the economy and their own outlook for the future.  We at Ford want to do our part to rebuild faith in the marketplace by offering payment protection on every new Ford, Lincoln or Mercury vehicle for up to a year if our customers lose their jobs.”

 

Look for more manufacturers to offer similar plans. It’s a good deal for both customer and manufacturer. While it adds no value to those secure in their job, it doesn’t take anything away either. It’s also unlikely that Ford, GM or Kia will have to make good on very many of these contracts because those is really precarious positions won’t buy a car, and relatively few owners will lose their jobs overall.

 

So it is a win-win. But whether it will “jump start”—a good term for an automaker to use?—sales remains to be seen, and indeed, if there is an uptick in sales, it will be difficult to separate the “added confidence” sales from other sales. Even if it’s mostly theater, for those it helps GM and Ford—and Hyundai—should be applauded.