DETROIT–Ford Motor Credit has introduced a new lending option in response to the coronavirus and the fear many potential buyers have over potentially losing their jobs.
The company is allowing customers who buy new or used cars through Ford Credit to return that vehicle within a year if payments can't be made because of job loss. The special "Ford Promise" program runs through Sept. 30, according to the company. It applies specifically to 2019, 2020 and 2021 purchased or leased new, used and certified pre-owned vehicles. Commercial use contracts do not qualify.
"I definitely know there are customers who are uncertain about making a large financial decision at this time," Brian Godfrey, president of Pat Milliken Ford in Redford, Mich., told USA Today. "We've seen customers who have put off a purchase or a decision on renewing their lease because of the uncertainty."
The report noted consumer data collected by Ford documents the concern.
Can’t Pull the Trigger
"We've been doing a lot of different research since the pandemic started," Matt Atkenson, U.S. retail communications manager at Ford, told USA Today. "We've found in the data that there's a growing population of customers saying, with everything going on, they're just not comfortable pulling the trigger. Not just automotive, but major purchases."
Ford pointed to Cox Automotive data that an estimated 32% of potential customers are delaying auto purchases, citing market uncertainty and fear of unemployment, the report added.
How Deal Works
"To qualify for this debt waiver," Atkenson explained to the publication, "you have to have involuntary job loss. If someone is eligible for state unemployment, that will qualify them to receive this. It begins 30 days after a vehicle purchase."
According to the auto manufacturer, Ford Credit will buy back the vehicle at its average trade-in value. If the difference between the vehicle value and the amount owed is greater than $15,000, the program limit, then the customer is responsible for that difference, Ford said. The customer would also be responsible for any late or deferred payments and vehicle damage.