Ford and GM Take on the Hyundai Assurance Program
gm-ford-in-love, originally uploaded by tundrahq
While the Big Three have been throwing everything but the kitchen sink to potential customers in order to make a deal, Hyundai has been sitting pretty with just one simple promise. The promise to make up to three payments on the buyers behalf if they should fault on their payments. If they find they still cannot afford the vehicle within one year of ownership, they can walk away free and clear without any damage to their credit.
It is called the Hyundai Assurance program and it has practically isolated Hyundai from the recession. This is something the Big Three has yet to accomplish no matter how many incentives they pull out of their hat!
Ford Advantage Plan
Well, if you can’t beat them, join them, is what I always say… and apparently that must be what Ford and GM say too! This month Ford will be introducing its new Ford Advantage Plan. It promises to make up to 12 payments for any new customer who has lost a job due to unfortunate circumstances. This will be a full nine months more payments than Hyundai is currently offering.
This is Fords way of telling its customers that they’ve got their back… at least for a year. After that the calls and threats may commence!
GM Total Confidence Program
GM, on the other hand, has their GM Total Confidence Program. The rules of the program state that GM will make nine payments to a faulted customer within their first 24 months of ownership. Under certain circumstances, if a customer is still having difficulty making payments, they may trade it in for a more affordable model without having to pay any extra for the depreciation the vehicle has incurred.
In other words, the buyer is protected from becoming so upside down in payments, they have little choice but to lose their shorts!
This is exactly what the Big Three should have done all along, but it may be a little late in the game to start now. Only time will tell!
June 4th, 2009 at 11:02 am
[…] thing is this month signifies the end of the payment protection plans currently being offered by Ford, GM, and Hyundai. If you would like to ensure your ability to pay for a new vehicle over the next […]