Automakers woo consumers with protection promises

04.04.09
By Lewis Green

Would zero percent financing on a new vehicle make you more willing to take out an auto loan and buy a car?

Automakers hope so as both Ford and GM roll out new consumer protection programs aimed at getting individuals behind the wheel - without worry.

U.S. automakers - struggling themselves to stay afloat during the recession - are taking new steps to help consumers in need of a new car obtain financing and drive off the lot with specific assurances in place should a customer subsequently lose their job.

The new Ford Advantage Plan offers zero percent financing on certain vehicles in addition to payment protection in the case of a layoff.

"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," said Ken Czubay, vice president of sales and marketing with Ford.

Even better is that consumers have a choice. Ford is not the only U.S. automaker with plans to ease customer stress in the car-buying process.

GM has also announced a Total Confidence promotion that offers potential buyers zero percent financing on certain models and payment protection on new cars purchased in April. This means if a customer loses his or her job within 21 months after buying the car, GM will make up to nine car payments of no more than $500 a month for them.

Ford and GM are the latest automakers to take a cue from Hyundai, which earlier this year launched a similar assurance program that allowed customers to return a recently bought car without impact to their credit score should they lose their job.

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