Ford Offers Its Own Payment Protection Program
by Steve Cypher on Tuesday, March 31st, 2009Ford becomes the first domestic manufacturer to offer a payment protection program called the Ford Advantage Plan.
Payment protection plans
If you’ve been following the incentive programs offered up by the auto industry like we have at Auto Credit Express, you will remember that back in January, Hyundai, the Korean manufacturer, introduced their “Hyundai Assurance” program to help spur new car sales. Under the program, if you experienced one of six life-altering events, including unemployment, the company would allow you to return your car and walk away from up to $7,500 in negative equity during the first 12 months of ownership.
Since that time, Hyundai has enhanced the program to include payments for 3 months while you look for a job before you can then turn in the vehicle.
Two weeks ago, the AutoNation dealer group introduced its own plan that covers payments for 6 months on either a new or a used car purchased at one of its stores. Today, Ford Motor Company followed suit and announced its own plan.
2010 Ford Taurus
Ford is the first of the domestics
Called the Ford Advantage Plan, the payment protection plan from the Dearborn, Michigan-based manufacturer will cover all Ford, Lincoln and Mercury vehicles purchased from March 31, 2009 until June 1, 2009. While the plan does not offer the option of turning in a vehicle, it does provide for payment coverage for up to 12 months (and up to $700 per month) on any new vehicle if customers lose their jobs.
In addition to the payment protection, customers can also take advantage of zero percent financing on select Ford, Lincoln and Mercury vehicles through the company’s captive lender, Ford Motor Credit.
“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.
Charity tie-in to be announced in April
Ford also aims to tie-in the Advantage Plan with local charities. “Just as important is additional charity support we will provide in conjunction with our local dealers, who are mindful of how non-profit organizations are struggling during this economic downturn,” Czubay said. “Ford and our dealers have always stepped up to take an active lead role in the community, and that’s why we are also including a charity element as part of the Ford Advantage Plan.”
Specific charity plans have yet to be worked out and, according to Ford, will be announced in April.
The Bottom Line
Here at Auto Credit Express, we were hoping that at least one of the domestic manufacturers would be able to come up with some type of payment protection plan. As the strongest of the domestic three automakers, Ford has really stepped in with their current program. It is our hope that their efforts will be rewarded with much improved sales over the next couple of months.
