GM & Ford Have A Bright Idea!
Hyundai started the trend and now GM and Ford are jumping on the bandwagon. These automakers have rolled out new “job loss” protection plans for those looking to purchase a car. According to The Washington Post, “U.S. automobile sales are barely running above an annualized pace of 9 million this year. By comparison, car companies in recent years have sold 16 million to 17 million vehicles. Analysts say the sharp drop suggests that Americans have grown so reluctant to buy new cars that they are even holding back on replacing vehicles that have been in accidents or no longer run.” GM’s job loss plan would cover up to nine car payments of $500 each for customers who lose their jobs, and Ford is offering payments of up to $700 for 12 months.
I am not sure of the specific details of these plans and what sort of “criteria” they set, however this is a positive for those that were a little reluctant on buying a new car. With a little (or lot) of government help, and these sorts of plans being rolled out, maybe there is some chance the auto industry can get back on it’s feet????? Leadpile Lead Exchange is excited about the possibility that there might be some light at the end of this very loooooooong tunnel.
Hyundai indeed initiated and were in the front-line with this idea; offering to pay your car note for three months if you lost your job. Sales for dealerships went downhill, some spectators might blame what started with the mortgage crisis and carried over across the board with what many spectators might call our country falling into recession. Auto Makers are strategically thinking on new methods to gain the interest of consumer and get them to spend on new vehicles and Hyundai sure led the way!
GM after closing a few factories is jumping in the concept. All they have to do now is compose more affordable 4 doors instead of SUV or trucks.
Savings is the way to go, if consumer can save on a car and save on gas they might not be as reluctant to buy an automobile. Face it a new car is a new car so the concern is not so much on the luxury but on the savings.
I see Ford stepped up with an unbeatable 12 month cover plan, but I think this only goes for their Lincoln and Mercury line not their entire selection. They call it the “Advantage Plan” and it’s effective now until June 1st, 2009.
Everyone should be driving a new car. It’s hip, so 2009!
1