Tech & Biz

GM, Ford to Cover Car Payments if You Lose Your Job

by Jordan Yerman | March 31, 2009 at 09:51 am

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Ford and GM are offering what sounds like a sweet deal for those on the fence about buying a new car: they'll cover your car payments (up to $700) for up to a year if you lose your job after buying that new car.

(I saw an advert last night about this, but thought it was local-dealer-specific)

Of course, enough Americans have already lost their jobs to diminish the pool of potential new-car buyers, so we'll see what effect this has upon actual sales.

Both Detroit giants are in a full-court press to get profitable.

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

Ford said Tuesday 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.

(I'm affiliated with neither company, for those of you just tuning in- it's an interesting strategy, though: bank on demand rising, thereby boosting not just auto production, but also ancillary businesses, thus preventing layoffs, thus preventing GM and Ford from having to pay out on too many of these deals)