Ford and GM Offer New Incentives to Restore Buyer Confidence
One day after Chairman and CEO Rick Wagoner was forced out of his job as the U.S. Government restructured domestic automakers, a new round of comprehensive incentives were announced by Ford and GM.
The incentives mark a new approach to motivating buyer behavior. Both incentive packages have at their core a buyer protection plan to take over payments in the event of unexpected jobless. This approach was pioneered by Hyundai last year and proved very successful.
GM was set to launch its incentives, called "GM Total Confidence" to much fanfare when Ford unexpected announced its own incentives package and buyer protection program called "Ford Advantage Plan."
The elements of GM Total Confidence, which are in addition to zero- or low-interest financing incentives, cash rebates and customer loyalty promotions, include:
- Payment protection for the first 24 months of ownership so that if the buyer suffers job loss, GM makes nine payments of up to $500 per month;
- A protection plan that ensures the value of a buyer's trade-in;
- OnStar's safety and security plan for a year as standard fare;
- Fully backed, 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation.
GM Total Confidence program highlights:
Payment Protection: provides up to nine months of payments on vehicle loans or leases with a maximum of $500 a month if the buyer loses his or her job for economic reasons.
Investment Protection: during the first two years of ownership, Vehicle Value Protection protect customers against steep depreciation.
Vehicle protection: GM's 5 year/100,000 mile transferable powertrain limited warranty (whichever comes first) plus roadside assistance and courtesy transportation.
OnStar Protection: One-year OnStar Safety and Security Package includes Automatic Crash Response.
The GM Total Confidence plan is available for vehicles purchased April 1 through April 30, 2009. For more details about GM Total Confidence, please see GMconfidence.com.
Meanwhile, the Ford plan will include payment coverage for up to 12 months on any new Ford, Lincoln or Mercury vehicle if customers lose their jobs.
Ford's Advantage Plan will also offer 0 percent financing on select Ford, Lincoln and Mercury vehicles.
- Posted by
- Philip Reed March 31, 2009, 8:20 AM
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- Car Buying, Car Loans and Financing, Vehicle Incentives and Rebates
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- buyer protection plans, financing, Ford, GM, incentives, rebates, zero percent
It's too bad that the Hyundai lead worked so well and Chrysler's didn't. I'd love to pick up a Ford with a lifetime warranty.
I hope this doesn't replace the cash incentives that expire 3/31/09. I cannot pull the trigger yet but the cash incentive is what was driving me into a new truck. If they replace the cash incentives I will wait it out. Has there been any word on the cash incentives? This entry makes it sound like GM at least is still offering cash and credit incentives in addition to the job protection.
People, ask yourself this question: WHO will be making these payments to those who suddenly can't pay their car payments?
Answer: YOU, John Q. Taxpayer, that's who.
Sure this sounds like a great incentive, but THINK about this, folks. First us taxpayers will be paying the mortgages of those who can't pay their house payments. Now we'll be paying the car payments of those who can't pay them. What will be next?
I wonder how the bankuptcy court will treat these agreements for those automakers likely to go under. Most agreements are abrogated (sp?) in a bankrupcy or at a minimum renegotiated.
Looks like I am out of the market for a new vehicle as I am secure in my job but wanted a better deal. I agree with yankeez that this newest incentive is aimed at marginal buyers (who probably are the most likely to buy but probably shouldn't).