How Auto Manufacturers are Adapting the Car Buying Process for Car Shoppers During Coronavirus

Jack R. Nerad | Apr 16, 2020

The coronavirus pandemic has not only turned each of our lives upside down, but it has also turned the global auto industry upside down. Factory closures have thrown thousands of people out of work while threatening the financial health of the world's carmakers. Lockdown and shelter-in-place regulations have made it much more difficult for auto dealers to operate the various phases of their businesses while preventing consumers from shopping for cars in the conventional way. But at the same time, the rapid response to the pandemic by many car manufacturers has created an unprecedented buying opportunity.

Auto Manufacturers Adapting the Car Buying Process During Coronavirus

Carmakers and dealers alike are going to unheard of lengths to support their current customers, incentivize potential customers to buy, and provide new ways for consumers to participate in the car-shopping and car-buying process. From online shopping tools to virtual reality test drives to service pickup and delivery to vehicle subscription services, the auto industry is responding to this unexpected challenge in a wide variety of innovative ways.

After nearly a month of self-quarantining, business interruptions, and literal fear in leaving home, it is difficult to remember how hale and hearty the auto industry was as it roared into 2020. In 2019 the U.S. auto business recorded its fifth consecutive year of 17-million-plus new-car sales, and though many, including us at J.D. Power, predicted that 2020 might not be quite as strong, our experts were looking for 16.9-million new-car sales this year before the coronavirus loomed over the horizon.

 
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The Shakespearean warning to Julius Caesar — "Beware the Ides of March" — came unnervingly true when American vehicle sales ran headlong into a stone wall in the middle of last month. Sales that were running ahead of expectations until that mid-March date suddenly fell to the ground as if they had been stabbed by daggers.

With typical American ingenuity, it didn't take the U.S. marketing teams of the manufacturers to leap into action to try to reverse or at least slow the trend. Ford, General Motors (GM), Fiat Chrysler Automobiles (FCA), Toyota, Honda, Nissan, and Hyundai are among the major car manufacturers who within days announced programs that include new-car purchase incentives, special leasing offers, new online retailing solutions, and financial assistance for current customers. In the following paragraphs you'll find the details on the auto industry's coronavirus response.

Acura - [Related: Acura Coronavirus Financial Relief and New Car Incentives]

Luxury brand Acura is working in lockstep with its higher-volume Honda brand sibling to offer a short list of incentives designed to get sales back on track despite consumers' difficulty in getting to Acura dealerships in some locales. Here are the details:

  • Deferred first payment for 90 days when financed through Acura Financial Services
  • "Loyalty cash" of $500 to current Acura owners and lessees who buy or lease a new Acura
  • Low-loan-rate financing for certified used TLX and RDX models until June 1, 2020

Alfa Romeo

Fiat-Chrysler's Alfa Romeo luxury brand has enlisted in FCA's "Drive Forward" initiative as its counter to the COVID-19 sales slump. Alfa Romeo offers 24-hour/day customer support, low-percentage-rate financing, and deferred payments on many 2019 and 2020 models. Alfa dealers are also offering online shopping and home delivery. Here are the details:

  • 0% financing for 84 months on some vehicles
  • Deferred payments for 90 days on many 2019 and 2020 models
  • Low monthly lease rates (e.g. as low as $299/month) on 2019 and 2020 vehicles
  • Alfa Romeo Online Retail Experience to facilitate hands-free vehicle purchase process
  • Home delivery of purchased and leased vehicles

Audi - [Related: Audi Coronavirus Financial Relief and New Car Incentives]

While Volkswagen, one of Audi's sister brands, is promoting its Community-Driven Promise that offers lengthy first-payment deferral and zero-percent financing for up to 72 months, Audi is taking a different course. Like many other luxury brands, it has not announced a national program. In its place, Audi is relying on its current national, regional and local offers and incentives. Here are details:

  • Audi owners are eligible for a $2,000 "loyalty" incentive on new 2019 model-year vehicles
  • Audi owners are eligible for a $1,000 "loyalty" incentive on 2020 model-year vehicles
  • Other incentive programs include corporate sales, military sales, a college graduate program, and a first-time buyer program. Each program includes special financing and lease offers to qualifying customers
  • Some Audi dealers are offering at-home "touch-less" delivery

BMW - [Related: BMW Coronavirus Financial Relief and New Car Incentives]

While the majority of non-luxury brands have announced special incentive offers in response to the coronavirus pandemic, luxury automakers are taking a more low-key approach. That certainly describes BMW's stance. At the same time, BMW is currently offering incentives to buy or lease. Here are the details:

  • Deferred monthly payments for 90 days on most new models through June 30, 2020
  • Deferred monthly payments for 90 days on certified pre-owned vehicles through June 30, 2020
  • Deferred payments do not include leases and are not available in every state
  • Lease incentives on a regional basis on most models

Buick - [Related: Buick Coronavirus Financial Relief and New Car Incentives]

Buick is joining with its General Motors sibling brands — Cadillac, Chevrolet and GMC — to offer long-term zero-percent new-car financing and very lengthy first payment deferral. It also offers online shopping and vehicle purchase at participating dealers. Here are the details:

  • 0% APR vehicle-loan financing for 84 months on most 2020 Buick SUV models
  • Deferred monthly payments for 120 days on most Buick models
  • GM First Responder Discount Program gives special lease and purchase discounts to firefighters, law enforcement officers, EMTs, paramedics, 911 dispatchers, and healthcare professionals
  • Online vehicle shopping, negotiation and purchase through Buick dealers participating in GM's “Shop. Click. Drive.” program.

Cadillac - [Related: Cadillac Coronavirus Financial Relief and New Car Incentives]

Cadillac is participating in the overarching General Motors coronavirus response that includes long-term zero-percent financing and first payment deferral. In addition, as GM's luxury brand, Cadillac is offering a few added upgrades of its own, centering around the shopping experience. Here are the details:

  • 0% APR vehicle-loan financing for 84 months on many models
  • Deferred monthly payments for 120 days on most models
  • GM First Responder Discount Program gives special lease and purchase discounts to firefighters, law enforcement officers, EMTs, paramedics, 911 dispatchers, and healthcare professionals
  • Cadillac Live, a personalized virtual online tour that matches customers with a Live ambassador who can answer questions
  • Online vehicle shopping, negotiation and purchase through Cadillac dealers participating in GM's “Shop. Click. Drive.” program.

Chevrolet - [Related: Chevrolet Coronavirus Financial Relief and New Car Incentives]

Like its sibling General Motors brands, Buick, Cadillac and GMC, Chevrolet is a prime participant in the automaker's deferred payment and low-cost loan offers. Under the umbrella "Chevy Cares," the brand is also offering special lease deals and the ability to shop and buy online. Here are the details:

  • 0% APR vehicle-loan financing for 84 months on many models
  • Deferred monthly payments for 120 days on most models
  • GM First Responder Discount Program gives special lease and purchase discounts to firefighters, law enforcement officers, EMTs, paramedics, 911 dispatchers, and healthcare professionals
  • Sign & Drive leasing with no first-month's payment, no "down" payment and no security deposit on many Chevy models including Trax, Equinox, and Silverado
  • Online vehicle shopping, negotiation and purchase through Chevrolet dealers participating in GM's “Shop. Click. Drive.” program.

Chrysler - [Related: Chrysler Coronavirus Financial Relief and New Car Incentives]

The Chrysler brand has assembled two strong campaigns to respond to the business slowdown caused by the coronavirus and the efforts to combat the virus's spread. First, Chrysler is participating in Fiat Chrysler Automobiles' "Drive Forward" initiatives that include special financing offers and deferred initial payments for new-car buyers, and it gives Chrysler customers a new way to buy a car. To support sales of the brand's dominant vehicle, the Chrysler Pacifica minivan, it has launched Pacifica Family pricing that features substantial discounts from the suggested list price, low-interest-rate financing, and deferred payments. Here are the details:

  • 0% financing for 84 months on some vehicles
  • 0% financing for 60 months on 2020 model-year Chrysler Pacificas
  • Deferred payments for 90 days on some 2019 and 2020 models
  • Chrysler Online Retail Experience allows customers to complete the vehicle purchase process online

Dodge - [Related: Dodge Coronavirus Financial Relief and New Car Incentives]

Dodge is running two major promotions simultaneously in an effort to kickstart sales negatively affected by COVID-19. First is the "Brotherhood of Muscle: Dodge Power Dollars" campaign centered on its 2020 Charger, Challenger and Durango models. It is also participating in FCA's "Drive Forward" program that includes special financing offers and deferred initial payments for new-car buyers. Perhaps the most exciting part of Dodge's effort is a new online buying experience that will enable Dodge customers to purchase or lease a vehicle without visiting a dealership. Here are the details:

  • 0% financing for 84 months on some vehicles
  • Deferred payments for 90 days on most 2019 and 2020 models
  • "Power Dollars" discounts from suggested list price on Charger, Challenger and Durango models
  • Dodge Online Retail Experience allows customers to complete the vehicle purchase process online

Fiat - [Related: Fiat Coronavirus Financial Relief and New Car Incentives]

Potential Fiat buyers will find FCA's "Drive Forward" initiative offers them around-the-clock customer support, low-percentage-rate financing for 84 months, and deferred payments for 90 days on some 2019 and 2020 models. Many Fiat dealers are also offering online shopping and home delivery to assure an experience that stays within the social distancing guidelines. Here are the details:

  • 0% financing for 84 months on some vehicles
  • Deferred payments for 90 days on many 2019 and 2020 models
  • Fiat Online Retail Experience allows customers to complete the vehicle purchase process online
  • "Driveway" home delivery of purchased and leased vehicles by Fiat dealers

Ford - [Related: Ford Coronavirus Financial Relief and New Car Incentives]

Ford has been one of the most aggressive global automakers in response to the coronavirus health crisis and the ensuing economic upheaval. With hundreds of millions of American workers idled by business and plant closures, Ford has created the "Built to Lend a Hand" program that offers customers six months of leeway before they have to make their initial payments. As a further incentive, many Ford dealers are now doing pickup of trade-ins and delivery of new vehicles with financial assistance from Ford Motor Company. Here are the details:

  • Three months of vehicle payments paid for by Ford on 2019 and 2020 vehicles except F-Series Super Duty
  • Deferred first payment for three months on 2019 and 2020 vehicles except F-Series Super Duty
  • Home delivery of purchased and leased vehicles by Ford dealers
  • Cars disinfected according to Centers for Disease Control-approved techniques

Genesis - [Related: Genesis Coronavirus Financial Relief and New Car Incentives]

Korean luxury brand Genesis is not following the lead of most of its luxury-brand competitors, choosing instead to create a special promotion in response to the coronavirus pandemic. As part of the ”Genesis Cares” program, Genesis is offering strong incentives and deferred payments, and if a new Genesis owner loses a job due to COVID-19, Genesis will make up to six months of payments. Here are the details:

  • 0% (APR) financing for 84 months and deferred payments for 120 days on the 2019 G70 sport sedan
  • Low-interest-rate financing on G80 and G90 sedans
  • Job-loss protection covering up to six months of payments if new owners lose a job due to the pandemic during calendar-year 2020

GMC

Along with its General Motors sibling brands Buick, Cadillac, and Chevrolet, GMC has joined the company's umbrella effort to respond to the COVID-19 crisis. The truck and SUV brand offers long-term zero-percent new-vehicle financing and a very lengthy first payment deferral. It also offers online shopping for a vehicle purchase at participating dealers. Here are the details:

  • 0% APR vehicle-loan financing for 84 months on many models
  • Deferred monthly payments for 120 days on most models
  • GM First Responder Discount Program gives special lease and purchase discounts to firefighters, law enforcement officers, EMTs, paramedics, 911 dispatchers, and healthcare professionals
  • Online vehicle shopping, negotiation, and purchase through GMC dealers participating in GM's “Shop. Click. Drive.” program.

Honda - [Related: Honda Coronavirus Financial Relief and New Car Incentives]

In response to the coronavirus pandemic, American Honda Motor Company has instituted additional incentives for new customers in the form of deferred initial payments and discounts. In addition, it has created a new ad and social media campaign, "The Power of Something Greater," that focuses on the strength of coming together as a community to help people get through challenging times and emerge even stronger. Here are the details:

  • Deferred first payment for 90 days when financing through Honda Financial Services
  • "Loyalty Cash" of $1,000 to buy or lease a new Honda
  • Low-APR financing rates on certified used Accord, Civic, and CR-V models purchased between April 17 and June 1, 2020

Hyundai - [Related: Hyundai Coronavirus Financial Relief and New Car Incentives]

To counter the effects of the COVID-19 epidemic Hyundai Motor America has reinstated a program it first offered during the Great Recession. Its Assurance Job Loss Protection program will make up to six months of payments for new Hyundai owners who lose their jobs due to COVID-19-related health issues this year. The brand is also offering no-interest financing and deferred payments on a variety of new Hyundai vehicles. Here are the details:

  • Six months of payments for those who lose their job for health reasons after purchasing or leasing a vehicle through Hyundai Capital between March 14 and April 30
  • 0% financing for up to 84 months on many 2020 models
  • Deferred payments for up to 120 days on selected vehicles purchased through April 30, 2020

Infiniti - [Related: Infiniti Coronavirus Financial Relief and New Car Incentives]

In reaction to the coronavirus situation, the Infiniti luxury brand has announced new initiatives to make purchasing a car through one of its dealers simpler, while also offering additional new-car purchase and lease incentives. Here are the details:

  • Deferred payments for 90 days on 60- and 72-month loans depending upon model
  • Low car loan interest rates depending upon the model
  • Pick-up and delivery program for new and used vehicle purchases, service appointments, and parts

Jaguar - [Related: Jaguar Coronavirus Financial Relief and New Car Incentives]

In an effort to maintain as much sales momentum as possible in the face of the COVID-19 crisis, Jaguar, along with sibling brand Land Rover, has announced new incentive offers that include loan-interest and payment deferral. Here are the details:

  • 0% financing for up to 72 months on all 2020 models and the 2021 F-Type
  • Deferred payments for 90 days on all 2020 models and the 2021 F-Type
  • Remote sales process to maintain social distancing
  • Home delivery of purchased and leased vehicles

Jeep - [Related: Jeep Coronavirus Financial Relief and New Car Incentives]

Jeep has launched several brand-new initiatives designed to rejuvenate its sales momentum. Its "Drive Forward" initiative that extends across other FCA brands includes special financing offers and deferred initial payments. The initiative also features an innovative online buying program that will enable Jeep customers to purchase or lease a vehicle without ever setting foot in a dealership. Here are the details:

  • 0% financing for 84 months on several models
  • Deferred payments for 90 days on many 2019 and 2020 models
  • Jeep Online Retail Experience allows customers to complete the vehicle purchase process at home

Kia - [Related: Kia Coronavirus Financial Relief and New Car Incentives]

With many American consumers fearing for the security of their current job Kia is offering both strong financial incentives and lengthy payment deferrals to those who purchase their vehicles soon. Kia's "Accelerate the Good" program includes low-interest loan rates, incentivized leases and customer loyalty programs representing some of the most comprehensive responses to the COVID-19 crisis in the industry. Here are the details:

  • 0% financing for up to 75 months on many models
  • Deferred payments for 120 days on many models
  • Online sales and leasing process at many affiliated dealers
  • Loaner cars, shuttle service, and home pick-up and delivery

Land Rover - [Related: Land Rover Coronavirus Financial Relief and New Car Incentives]

Hoping to maintain sales volume despite the sudden emergence of the COVID-19 pandemic, Land Rover has announced new incentive offers that essentially mirror those provided by sibling brand Jaguar. They include low-interest loans and payment deferral. Here are the details:

  • 0% financing for up to 72 months on all 2020 models
  • Deferred payments for 90 days on all 2020 models
  • Remote sales process to maintain social distancing
  • Home delivery of purchased and leased vehicles

Lexus - [Related: Lexus Coronavirus Financial Relief and New Car Incentives]

The Lexus luxury brand is taking an understated approach to its coronavirus response by focusing on customer service. Its key incentive is a deferred payment offer. Here are the details:

  • Deferred payments for 90 days on most 2020 models (45 days in Pennsylvania)
  • Deferred payments for 90 days on certified pre-owned vehicles (45 days in Pennsylvania)
  • Deferred payment offers are available through May 4, 2020

Lincoln - [Related: Lincoln Coronavirus Financial Relief and New Car Incentives]

Ford Motor Company's luxury brand, Lincoln, is offering a variety of responses to the COVID-19 epidemic. Included among its efforts are online shopping, concierge service and new-car incentives. Here are the details:

  • 0% financing on most 2020 models
  • Deferred payments for up to 120 days on most 2020 models
  • Online purchase experience with AUTOFI
  • Home delivery for sales in addition to valet service

Mazda - [Related: Mazda Coronavirus Financial Relief and New Car Incentives]

Mazda has some of the most attractive cars and crossovers in the industry, bridging the gap between popularly priced vehicles and the luxury segment. In response to the coronavirus threat Mazda is offering both low-interest-rate financing and deferred payments, and in the midst of the crisis it has launched a new financial arm, Mazda Financial Services. Here are the details:

  • Deferred payments for up to 90 days on new and certified used vehicles through April 30, 2020
  • 0.9% APR loan rates for 60 months on many Mazda models
  • $1,500 "loyalty reward" for existing Mazda customers on new 2018, 2019, or 2020 vehicles
  • Sales by appointment in many areas
  • Drop-off/pick-up services and free loaner vehicles for service customers at many dealers

Mercedes-Benz - [Related: Mercedes-Benz Coronavirus Financial Relief and New Car Incentives]

Mercedes-Benz has not announced an incentive program or specific incentives created in response to the coronavirus and the economic pressures that accompany the pandemic. At the same time, it is continuing its existing special offers in hopes that it might persuade some luxury customers that now is a good time to buy or lease. Here are the details:

  • 0% financing for up to 36 months on most 2020 models
  • Deferred payments of up to 90 days on all 2020 models
  • Online shopping and transactions at participating dealers
  • Home delivery and pickup for service customers

Mini - [Related: Mini Coronavirus Financial Relief and New Car Incentives]

Though Mini is not specifically tying its subsidized deferred payment program to the coronavirus pandemic, that offer is one of the keys to its COVID-19 response. It is also fielding low-interest-rate and special leasing offers. Here are the details:

  • "3 Payments On Us" program for nearly all models good for up to $330 per month for the first three months
  • 1.9% APR loan interest rate financing for 60 months for many models
  • Low-cost lease rates (e.g. $229/month) for many models

Mitsubishi - [Related: Mitsubishi Coronavirus Financial Relief and New Car Incentives]

Mitsubishi has put together a multi-faceted set of custom incentives in the face of COVID-19. It includes lengthy payment deferrals and low-interest loans. Here are the details:

  • Deferred payments up to 90 days with the purchase a new Mitsubishi
  • Deferred payments of up to 120 days on a new Mitsubishi for current Mitsubishi owners who financed through Ally
  • 0% financing for up to 60 months on all 2019 and 2020 cars and SUVs with $1,250 in "bonus cash"
  • $3,000 rebate on remaining 2019 Eclipse Cross, Outlander, and Outlander Sport SUV models
  • No-cost lease extension of 30 days for expiring leases

Nissan - [Related: Nissan Coronavirus Financial Relief and New Car Incentives]

Many consumers who would otherwise be in the market for a new vehicle have pushed the pause button on that effort fearing their job might be the next to go. Nissan is offering lengthy payment deferrals to those who purchase their vehicles soon to give prospective buyers peace of mind on that issue and is also offering special loan rates on some models. Here are the details:

  • Deferred payments for 90 days for vehicles purchased with a special loan rate
  • Special finance and lease rates on a regional basis on some 2019 and 2020 vehicles
  • Online booking of sales and service appointments

Porsche - [Related: Porsche Coronavirus Financial Relief and New Car Incentives]

Unlike many automakers, Porsche has not announced special new car incentives due to the COVID-19 pandemic. Instead, it is relying on national programs for sales and leasing that already exist on a variety of models. Here are the details:

  • Lease offers on most Porsche models, starting with $699/month on the 2020 Macan with $6,089 due at signing
  • Online retail program allowing customers to handle the entire transaction on the Internet
  • Home delivery of new and certified pre-owned vehicles

Ram Trucks - [Related: Ram Trucks Coronavirus Financial Relief and New Car Incentives]

Ram Trucks is participating in its parent company FCA's, "Drive Forward" campaign. The multi-faceted effort includes special financing offers and deferred initial payments for new-car buyers, plus a new online buying program that will enable Ram Trucks customers to purchase or lease a vehicle without visiting a dealership. Here are the details:

  • 0% financing for up to 84 months for several 2019 and 2020 models
  • Deferred payments for 90 days for several 2019 and 2020 models
  • Online Retail Experience allows Ram Truck customers to initiate purchase process on the Ram Truck national website and then complete the details on a local dealer website

Subaru - [Related: Subaru Coronavirus Financial Relief and New Car Incentives]

To aid those who are concerned about their income, Subaru has introduced the Subaru Payment Deferment Program. In addition, Subaru has also created a program featuring long-term zero-interest financing on some of its most popular models. Here are the details:

  • Deferred payments for up to 90 days on select vehicles
  • 0% financing for terms of up to 63 months on 2020 Ascent, Forester, Outback, Legacy, and Impreza models
  • Special financing rate is for vehicles purchased between now and April 30, 2020.
  • Special incentives and lease deals on a regional and local basis
  •  

Tesla - [Related: Tesla Coronavirus Financial Relief and New Car Incentives]

Tesla Motors' most prominent incentive is what it calls its Best Rate Guarantee for those customers who purchase using an auto loan. It is also using its extensive Web presence and the Tesla App to make purchasing, leasing and servicing its vehicles easier. Here are the details:

  • Tesla will match the loan rate offered by a third-party finance institution for customers who demonstrate valid approval for a lower rate than that offered by Tesla
  • 2.99% APR loan rates for up to 72 months for 2020 Model 3, Model S and Model X vehicles
  • Tesla "touchless deliveries" allow customers to take delivery of their vehicles while maintaining social-distancing

Toyota - [Related: Toyota Coronavirus Financial Relief and New Car Incentives]

Unlike many of its competitors Toyota has not announced any national low-interest financing, rebates, deferred payments, or any other incentives on its vehicles. Instead the Toyota brand is running a national ad campaign called "We're here for you" that emphasizes service. At the same time, Toyota has regional and local promotions whose terms vary by area. Here are the details:

  • Deferred payment for up to 90 days on vehicles that include Toyota Camry, Corolla, Corolla Hybrid, and Tacoma midsize pickup
  • Deferred payments for up to 90 days on certified pre-owned vehicles

Volkswagen - [Related: Volkswagen Coronavirus Financial Relief and New Car Incentives]

Volkswagen's Community-Driven Promise campaign offers robust incentives to new-car shoppers who are trying to decide if now is the time to buy a new Volkswagen. For those concerned about their employment in the short-term due to coronavirus-induced layoffs, Volkswagen is giving qualified new buyers the option of delaying their first payment for a lengthy period, and that offer can be combined with 0% APR financing. Here are the details:

  • Deferred payments for up to 180 days for most models
  • 0% financing for up to 72 months for most new vehicles, if purchased by April 30
  • For a majority of CPO vehicle purchases by June 30, 0% financing for up to 60 months is available
  • A waiver for up to 6 months is also available for buyers who lose their jobs due to COVID-19, and are using Volkswagen Credit
  • Carefree Maintenance program is new for 2020, and offers two years or 20,000 miles (whichever occurs first) of scheduled maintenance at no additional charge

Volvo - [Related: Volvo Coronavirus Financial Relief and New Car Incentives]

In response to the coronavirus crisis, Volvo Car has not announced an overarching sales promotion, but it is continuing to offer a variety of incentives on a regional basis. As was true before the pandemic, Volvo also offers vehicle "subscriptions" to several of its most popular models that include insurance, maintenance and some "wear-and-tear." Here are the details:

  • Low-interest financing on many vehicles for terms up to 60 months
  • Cash allowances (e.g. $3,500 on XC90) on many models
  • Special lease offers
  • Subscriptions to Volvo vehicles with no payment at signing or first-month subscription payment
  • Virtual product walk-arounds, augmented reality, and Google Lens outreach to potential customers who are sheltering at home
  • FaceTime for live walk-arounds
  • Volvo Valet for scheduling service pickup and delivery

The information contained in this article was accurate and valid as of April 16, 2020. As the COVID-19 pandemic continues, some programs may change. Always confirm specific plan and program details with the automaker or your dealership.

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