Lose job? Ford, GM will make car payments

[sabra]

Source: Chicago Trib



DETROIT -- Ford Motor Co. and General Motors Corp. are offering payment protection plans to help reassure consumers who may be putting off buying a new car because of worries about losing their job.

The offers come as auto sales have been battered by the recession and tight credit, reaching their lowest levels in 27 years.

Ford said today it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs. The program runs until June 1.

Hours later, GM said it will make a similar offer. GM's new CEO, Fritz Henderson, said the company will make up to nine car payments of $500 each for customers who have lost their jobs through no fault of their own.

Customers must qualify for state unemployment to be eligible for the program. The program starts April 1 and runs until April 30.

Read more: http://www.chicagobreakingnews.com/2009/03/lose-job-ford-gm-will-make-car-payments.html

[Oregone]

1. insane

[fumsm]

2. How original

[ixion]

3. be sure and read the fine print

there's always a catch. always.

[KillCapitalism]

22. Yep.

I'm sure the catch would be that any payments you didn't make on your own would be added to the back end of your loan + interest of course.

[ixion]

23. exactly

[Telly Savalas]

34. Better than having the car repoed.

[SoCalDem]

29. They are just building in "insurance" into the cost of the car

Trust me..they are not being altruistic:)

[Tempest]

4. The Big Three are still playing catch-up

Another company (Japanese) already beat them to the punch on this.

[jpak]

6. I believe that was Korean car Co. Hyundai

n/t

[Tempest]

16. That's the one

I guess I should have looked it up.

Thanks for doing the heavy lifting. :D

[CoffeeCat]

5. but what if these automakers go bankrupt...

...which could likely happen?

If that happens, I bet you anything, that these automakers are relinquished from making those payments.

Let's entice people into buying new, expensive cars--knowing that we're hanging on by a thread and probably
ten seconds from bankruptcy.

Here's how the automaker board-room conversation probably went, "If we make enough money off of these consumers---great. If we don't, we
declare bankruptcy and we're off the hook. What about the consumers who lost their jobs and now have to return those cars...and
they don't get their payments made for them during the year---like we promised? Oh well."

:eyes:

[Deja Q]

17. Given they are close to bankruptcy, would you buy? Also, how much do the execs make?

I mean, it's THEIR decisions that deserve them their wages.

And if their wages are 400x (more like 600x?) their average worker pay, then the problem is NOT with the worker.

Hell, if anything negative about them, unions prevent people FROM showing interest or doing more than what their pigeon-holed position allows them TO do.

[EnviroBat]

7. So hyundai starts this "rescue" effort and now the big three are finally catching on.

How about "For the life of the loan". Usually people that buy cars are pretty stable in their jobs for the first year of ownership anyway. It's not like, "Gee, there are alot of people being laid off where I work, I think I'll rush out and buy a new car." Thing is, after that initial year of "coverage" your left with a car that has around 60% of the loan value. After a year, you're on your own...

[Romulox]

18. Read it again more carefully. You've misinterpreted the terms.

"After a year, you're on your own..."

No. The period of payment forgiveness is limited to a year. Not the period of coverage.

[EnviroBat]

24. Exactly. If you lose your job AFTER the 1 year term, you're screwed.

[Romulox]

31. Er, no. It doesn't say that at all. nt

[tammywammy]

32. No, that's not it

If you lose your job they'll make your payments for up to a year.

Hyundai, I believe, is if you lose your job within the first year of owning the car you can turn it in with no hit on your credit.

I think GM/Ford have a much better deal.

[tularetom]

8. What if you are a GM employee and lose your job because GM goes tits up?

:shrug:

[LuckyLib]

9. For over 25 years the Big 3 go their own way, while America buys elsewhere.

Folks flocked to cars that don't require maintenance and still get good mileage -- it's called "voting with your feet" (in this case, wallet). They missed the boat years ago. Then went gangbusters on those super-sized SUV's. No sympathy here. Automaker leaders refused to consider the big picture, and, as employees, autoworkers were caught in the middle.

Sorry. They just don't make good cars.

[blue_onyx]

25. "They just don't make good cars."

It's really getting annoying that clueless people keep repeating this BS. US automakers do make good vehicles.

"gangbusters on those super-sized SUV's"

All the foreign car companies sell SUVs too. But I guess it's ok when they do it.

[LuckyLib]

26. "US automakers do make good vehicles." That would explain, then, why they have been so

successful . . . :sarcasm:

[blue_onyx]

28. Yeah, I guess the 50% of auto consumers

who buy from US auto companies are just idiots who choose to buy bad cars. :sarcasm:

Crappy trade policies, legacy costs, the burden of providing health care, and the lack of credit due to the idiots on Wall Street are the biggest reasons for the US automakers current problems.

[tammywammy]

33. Yeah, because Honda and Toyota's sales haven't dropped either.

:sarcasm:

And they're both already backed by their government.

[FailureToCommunicate]

10. If Ford and GM could make Sherman tanks during WWII, let's have them make light

rail trains now. Workers get to keep jobs and the nation gets more public transportation. And the tax payers aren't on the hook for their screw ups.

[Endangered Specie]

12. Sherman tanks weren't that good.

[amandabeech]

11. Citigroup, Bank of America announce plans to pay your mortgage and business loan

for up to $700 and $1500 a month respectively, for a year if you lose your job.

Okay, everyone make make derisive comments about them. At least GM and Ford are trying to do the right thing.

The banksters are giving themselves larger salaries instead of bonuses with YOUR tax dollars and no gives a rat's ass, including our government.

No complaining about them here!

[phantom power]

13. Good luck with that. They can't even pay themselves.

[DS1]

14. "up to" $700 /mo and "up to" one year

I wonder what the numbers are for your typical schlep who just needs a newer car

[totodeinhere]

15. If you are afraid you might not be able to make the payments, don't buy a car. n/t

[harun]

27. They want to sell cars? Lower the price to what people can pay for and not have to loan for.

No payment problems then.

[Pavulon]

19. Hmm Corvette, hopefully porsche and BMW will do the same

that would be awesome.

[and-justice-for-all]

20. I bet it is just an interest payment...nt

[InkAddict]

21. Can we get the 0% APR deals?

Will Congress pass a tax incentive to buy too? What about less than grand credit scorers?

[Name removed]

30. Deleted message

Message removed by moderator. Click here to review the message board rules.