Friday, May 22, 2009

Latest Trend: Automakers Make Car Payments for the Employed

Hyundai was the first automaker to offer a credit protection (job loss protection) program for consumers, with its Hyundai Assurance Program earlier this year. Ford and GM followed Hyundai's lead, offering buyer protection programs, too. Unlike Hyundai and Ford, GM enhanced its program, providing trade-in protection once you make 50 percent of your car payments. Not to be outdone by GM, Hyundai has upped the ante again.

This time Hyundai will make your payments for six months on select new vehicles and you don't have to be unemployed to take advantage of the offer. While this seems like a savvy marketing program, the Korean automaker is only taking the rebate, which would be typically applied to the deal at the time of purchase to reduce the cost of the vehicle, and dividing it into six monthly payments. BMW Financial Services has also been in the game of making payments, too. On select Bimmers the automaker has agreed to make the first two car payments up to $750 a month, totaling $1,500. If this was an American made vehicle, it would be known as a rebate.

Furthermore, Chrysler is back in the finance game, according to Automotive News. After suspending cut-rate financing deals, when the company entered bankruptcy, they'll now resume offering 0 percent financing for up to 72 months on select vehicles.

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