With auto sales plummeting, incentives are the necessary tool to drive consumers into showrooms. However, even the most attractive incentives are not enough to excite all consumers, many of which are concerned not only about the economy, but are specifically concerned about job loss. It is this specific concern that is being addressed by a new string of incentives, intended to quell consumer fears while helping to move inventory.
Hyundai recently introduced the Hyundai Assurance Program. This unique incentive program enables consumers to buy or lease a new Hyundai and return the vehicle without penalty should they be affected by a job loss or situations that make them unable to continue payments. At Chicago Hyundai, the simple incentive has successfully fueled confidence among buyers who continue to be worried about the economy.
Similarly protecting car buyers that lose their job is a new program from Ford. As an extension of their existing “Drive One” campaign, Ford will make up to 12 monthly payments of $700 or less for new car buyers that lose their jobs and cannot afford to continue the payments. San Diego Ford dealers say this new program will begin on Tuesday and is scheduled to run until June 1st.
This new incentive program applies only to new Ford, Lincoln, or Mercury vehicles, but excludes Ford’s other brand, Volvo. Currently the automaker is attempting to find a buyer for the Swedish subsidiary.
But Ford and Hyundai will not be alone in this new consumer-friendly incentive craze. General Motors will also be announcing a similar deal. The “GM Total Confidence” program will include nine monthly payments of up to $500 for buyers who find themselves without a job within the first two years of owning their vehicle. The added catch according to Louisville Chevrolet is that GM will only extend these payments to those customers that are eligible for state unemployment benefits. The incentive applies to all GM vehicles aside from Saab – another Swedish subsidiary that is pending sale.
Other incentives have been abundant. These have included cash back, low APRs, or even zero percent financing which have helped continue momentum among Detroit Chevrolet dealers. But with incentives rampant and consumer confidence dwindling, few have had an effect on new car sales. However, the Hyundai Assurance Program is going strong, helping Hyundai gain momentum and market share in this volatile auto market. As a result, GM and Ford have both noticed. (more…)
