Consumer Car Buying Advice Blog

The payment protection plans introduced by Ford and General Motors are set to expire next Monday.

Ford and GM plans set to expire

Here at Auto Credit Express, we reported on March 31st that Ford Motor Company rolled out its Ford Advantage Plan. Covering all Ford, Lincoln and Mercury vehicles, the plan provides for payment coverage for up to 12 months (maximum of $700 per month) on any new vehicle if customers lose their jobs due to a layoff. Ford was the first of the domestic automakers to offer a payment protection plan and as it is currently written, the plan is due to expire on June 1st.

General Motors became the second domestic brand to offer its own plan, called the GM Total Confidence Plan. And while GM’s plan only covers monthly payments for 9 months and a maximum of $500 per month instead of the 12 months and $700 offered by Ford in the event of a job loss, the GM plan goes a step further in other areas.

In addition to covering 9 months of payments, the plan also includes what the company calls “Vehicle Value Protection.” Under this plan, if a customer trades in their current vehicle that’s purchased under the plan and, within six years, finances a new GM vehicle, General Motors will provide negative equity assistance if the outstanding principal loan balance is more than NADA Clean Retail Value.

As originally outlined, the GM plan was set to expire on April 30th. On May 1st, however, GM announced that the plan was being extended through June 1st, although Saab, Cadillac and Hummer vehicles, along with medium duty trucks, would be excluded from the extension.

Hyundai Assurance

Unlike Ford or GM, you still have some time, although not that much, to take advantage of Hyundai’s Assurance plan. A call to the administrator confirmed that Hyundai will be terminating their program on June 30th, so you have just over a month remaining to take advantage of their plan.

The Bottom Line

If you are currently in the market for a Ford, Lincoln, Mercury of one of the select GM vehicles covered under these programs, you only have a few more days to take advantage of these additional programs. With vehicle sales leveling off, there is a very good chance that these two programs will not be renewed.

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