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, it’s 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, it’s 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?
Too little, too late. If these auto manufacturers really cared about customers, they would have worked on providing faultless repair services and actually honoring warranties at their dealerships. Instead, they tried to rip you off for every part you needed and claimed that every problem with the car was your fault.
Thanks for the link at the end! I’m looking to purchase a new car soon and cannot wait! The buying process has been nothing short of beautiful. Dealerships are VERY motivated to move cars now.
Good to know these deals are out there hopefully it will encourage more buying. Does anyone know if any of the Japanese car companies will start offering similar protection plans? I’d hate to lose my job after buying a new car.
Daisy, if you’re referring to Honda or Toyota I haven’t heard anything yet.