The “G.M. Total Confidence” will allow people nine months of payments up to $500 to be missed if they lose their jobs in the first two years of buying a car. The company is also eliminating any negative equity that exists when buyers sell or trade in their vehicle at least three years later. GM’s program will begin on Wednesday and will run for the month of April.
The “Ford Advantage Plan” helps the unemployed out a little more with payments of $700 and under for an entire year. Ford is the only one of the three top car makers in the United States that has not had their hand out for bail out money.
The New York Times reports:
“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,” said Ken Czubay, vice president of Sales and Marketing.
The Ford plan will run until June 1. The company is also offering zero percent financing through its Ford Motor Credit on certain Ford, Mercury and Lincoln cars.
After the announcement shares for the automaker rose 1.5 percent to $2.80 Tuesday morning.
The two American car makers are following the lead of Korea’s Hyundai. The Korean automaker came out with their plan in January that allows buyers who lose their income within one year to return their vehicle without a penalty to their credit rating.
Car sales fell to a 16-year low in 2008 as tough economic times kept buyers off of car lots.