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 4/8/2020. Continue to check back for the most up to date information.
In a swift response to the economic uncertainty fueled by the coronavirus pandemic and widespread COVID-19 illness, 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 Automobiles (FCA), Ford Motor Company, General Motors, American Honda, Hyundai Motor America, Kia Motors America, Nissan North America, Toyota Motor Sales U.S.A, and Volkswagen of America are among the major car manufacturers that have announced coronavirus car payment plans and programs. Most other carmakers have followed 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.
"These types of programs have been tools OEM's have used many times over in economic downturns and for inventory control," said James Houston, J.D. Power Managing Director, Consumer Lending and Automotive Finance. "History shows us that automotive sales recover over time, and there will be less need to rely on these types of programs."
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, Toyota Financial Services, and Volkswagen Credit 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.