Numerous auto manufacturers are making stronger attempts to encourage consumer spending by launching customer protection plans to lift the ailing auto industry. After Edmunds.com reported in February 2009 that there was a 38.9% decrease in sales from February 2008, its no surprise that manufacturers are working harder to lure in customers.
Will the Auto Makers' Plans Work?
A number of companies are willing to try their luck as they battle what seems to be an everlasting recession, along with customers seemingly relentless determination to save rather than invest in new vehicles.
Here are some companies launching new plans this year:
Hyundai's Protection Plan
In January 2009, Hyundai launched its Hyundai Assurance plan, which offers consumers buying or leasing new vehicles the ability to return them without penalty if they lose their income within the first year of purchase.
Ford's Protection Plan
In March 2009, Ford announced that it was launching a plan that would cover payments on any new Ford, Mercury, or Lincoln for up to 12 months if customers lose their income. Also, it would offer 0% financing on predetermined vehicle models through Ford Motor Credit.
GM's Protection Plan
Also in March 2009, General Motors announced the launch of its new GM Total Confidence vehicle value protection plan, which includes making up to nine $500 per month payments during the first 24 months of ownership if buyers lose their income as well as substantial cash-back incentives on trade-ins if buyers purchase 2008s or newer.
Since the plans are just getting started, its hard to say just yet whether they will successfully encourage consumers to purchase new vehicles. Despite manufacturer incentives and plans, the overall economy is continuing to weigh the sector down. Growing unemployment numbers and a falling housing market are the main reasons people aren't taking on new auto loans. So what do you think? Can plans like these lure you out of savings and onto a new car lot?
