Automakers Create Coronavirus Car Payment Plans & Programs in Bid to Boost Flagging Sales
This story was originally released on 3/16/2020, with the latest update coming on 3/31/2020. Continue to check back for the most up to date information.
In a swift response to the economic uncertainty fueled by the coronavirus pandemic, automakers are scrambling to offer car payment programs to help those whose paychecks are threatened by the outbreak. Many carmakers are also creating special coronavirus car deals to persuade consumers that now is a good time to buy a vehicle.
Fiat-Chrysler, Ford, General Motors, Honda, Hyundai, Nissan, and Toyota are among the major car manufacturers who have announced coronavirus car payment plans and programs. Other carmakers may follow suit as the auto industry strives to stave off the double-whammy of plunging new-vehicle sales and rampant car loan defaults and repossessions.
While the automakers’ COVID-19 programs of incentives and sales support have been instituted quickly, they are not unprecedented.
"OEM’s and their captive finance partners have a number of tools to support consumers during times of uncertainty, both those looking to purchase a new vehicle as well as those looking to continue maintain their existing vehicle" said James Houston, J.D. Power Managing Director, Consumer Lending and Automotive Finance.
But in times of economic uncertainty, auto manufacturers can't wait for the tide to turn. Ford Credit, GM Financial, Honda Financial Services, Hyundai Capital, Nissan Motor Acceptance Corporation, and Toyota Financial Services are among the major finance arms offering delayed payment options to customers in the U.S. impacted by COVID-19. Fiat-Chrysler primarily relies on Chrysler Capital and Ally Financial to provide funding for leases and new-car purchases, and both are offering a variety of payment relief options.