Please ensure Javascript is enabled for purposes of website accessibility

Ford Credit Offers to Help Buyers Affected by Coronavirus

By John Bromels - Mar 16, 2020 at 3:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The assistance will apply to existing and new Ford purchasers.

If you're a Ford (F 3.89%) owner who's concerned about making your car payments after a coronavirus-related financial setback, the company issued some good news for you on Monday...that is, if you got your auto loan through Ford Credit, the company's lending arm. 

In a press release, the company encouraged "customers in the U.S. impacted by COVID-19 to contact the company to discuss potential delay of payments to provide relief." In addition, Ford Credit rolled out a deferred payment program offering new vehicle purchasers the option to wait 90 days before making their first payment.

A man hands a woman a car key across a desk, on which sit a clipboard, a calculator, and a toy car.

Ford is hoping to encourage car sales by offering help to those affected by coronavirus. Image source: Getty Images.

Revisiting the past

Concerned about falling sales, Ford rolled out a similar program during the Great Recession to encourage sales. Dubbed the "Ford Advantage Plan," the 2009 version offered payment protection for up to a year in the event of a job loss. It's too early to tell whether job losses will become a major feature of the current coronavirus pandemic, but lost wages are a certainty as the illness spreads, forcing people into quarantine or into caring for a stricken family member. 

Even those who don't contract the virus may find themselves in financial straits as parents stay home with children whose school has been cancelled and bar and restaurant employees have their businesses shuttered by states trying to limit the spread of the virus.

Par for the course

Other automakers may follow Ford's lead.

Hyundai (HYMTF -0.07%) has already dusted off its own Great Recession-era program, known as "Hyundai Assurance." Ford's program seems to be more robust, however, as Hyundai Assurance is specifically for future purchasers "if they lose their job due to COVID-19 this year."

No word yet from General Motors on whether it plans to resurrect its "GM Total Confidence Program," a similar effort from 2009.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ford Motor Company Stock Quote
Ford Motor Company
F
$12.01 (3.89%) $0.45
Hyundai Motor Company Stock Quote
Hyundai Motor Company
HYMTF
$32.20 (-0.07%) $0.02
General Motors Company Stock Quote
General Motors Company
GM
$34.82 (5.55%) $1.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.