Not to be outdone by Hyundai, if you buy a Ford and lose your job, the car-maker announced they’ll make your payments for up to a year, up to $700 per month. President Mark Fields released a video about the “Ford Advantage Plan” on YouTube. Take a shot every time he says “confidence.” GM is supposed to announce their own version this morning, says Kicking Tires. UPDATE: And here it is.
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That’s actually a frigin sweet deal. Though I’m sure the fine print is nauseating at best.
I am curious what the fine print will say. I have a feeling the restrictions will make it almost impossible for anyone to make a claim on this deal.
“Not to be outdone by Hyndai [sic], if you buy a Ford and lose your job, the car-maker announced they’ll make your payments for up to a year, up to $700.”
They’re kidding, right? That’s not a year’s worth of car payments– that’s *two month’s* worth of car payments.
Unless Ford is going to start selling the Tata Nano, their new confidence-inspiring program is not very confidence-inspiring.
@Daveinva: Okay, did I misread that before or did you just change the print? I could have sworn I saw “$700 a *year*”
Oh well, never mind– $700 a month *is* a sweet deal. Hell, it’s almost enough for me to lose my job on purpose.
@Daveinva: Up to $700 a month – $8400 a year
That is how I read it.
@coan_net: Yeah, Ben just corrected the posting.
@Daveinva: Where? I’m not seeing that.
@pecan 3.14159265: “they’ll make your payments for up to a year, up to $700 per month. “
@Daveinva: My question is, HOW THE HELL can you manage to get a car that COSTS $700 A MONTH?
@Oranges w/ Cheese:
Any car over $42,000 will guarantee over $700 payments, even at 0% interest over 5 years.
If you go for a 3 year loan at a conservative 3.9% interest rate, that drops to $23,745.30.
It doesn’t take much to find a car over $24k, even if it is a Ford. Especially if you deck it out.
@Oranges w/ Cheese: A new Expedition or Super Duty?
Do the math: a $45,000 rig over 72 months at 4% interest is $704.03/mo.
A King Ranch F-350 or a Navigator is close to $60,000. $60,000 over 72 months at 0% is $833.33/mo.
A new SUV or truck can be very expensive.
@Oranges w/ Cheese: Yeah, I was just thinking, for $8400 Ford can just BUY me a new (used) car, and a nicer one than I drive now! (Kelly thinks my car is worth $3500. I think Kelly is optimistic.)
Up to $700? Okay, that’s two months. On average, maybe 3?
@adamczar: RTFA, It’s up to $700/mo payments. Not up to $700 period. If your payment is $700 or less, Ford will take over them for up to one year if you lose your job.
@adamczar: “Not to be outdone by Hyndai, if you buy a Ford and lose your job, the car-maker announced they’ll make your payments for up to a year, up to $700 per month.
I assume there was an edit, because you’re not the only one who was confused.
@nakedscience: Yes, it’s been corrected. Originally it said “per year.” Makes more sense now.
Just for clarification, Ford will pay up to 12 months at a maximum of $700 per month. When I saw your summary, the “up to $700″ made it look like they’d actually only cover two months for most Americans who have an average payment of $300 a month for a car.
@beyondthetech: Corrected as I was typing my message! Good catch, guys!
With whose money will they pay the $700 a month?
@Gtmac…and sometimes y: …Theirs?
@Gtmac…and sometimes y: This question might be better asked when a company that has taken bailout funds announces their plan, presumably later this morning according to the article.
@Gtmac…and sometimes y: If it works anything like many banks’ “Skip a Payment” plans they simply extend your loan. So if you let them pay 3 months it extends your loan by 3 months (I’m assuming). However I’ve seen one bank that let you skip a payment but they kept your loan end date the same. Therefore when you got to that last month you had to pay the balance (normal payment + however many months you skipped).
Ours, presumably.
@adamczar: Likely, not.
@adamczar: Ford didn’t take any of our money. GM and Chrysler took a lot, Toyota tood some of the Japanese peoples’ money.
Ford, $0 so far. They saw it coming and leveraged everyhting with giant bank loans.
@jaydez, nakedscience: I stand corrected.
I think I’ll pass on GM’s version of this arrangement. They should be using our tax dollars to learn how to read and write instead. According to the GM TV commercial I saw last night during “Heroes”, “America derseves some credit!” (Yeah, I have a screen shot of that on my blog…)
@Merujo: Do email me a link – aaron8301 at google mail.
@Don’t take anything aaron8301 says seriously: Or I could just look at your profile and find the link, as I just did…
Where’s my damn coffee…
@Merujo: UPDATE: the Director of Social Media for GM has just left a mea culpa comment on my blog! Holy buckets – the power of the Internet, eh?
It’s a nice gesture… but still not good enough to get around having to own a Ford to get it.
@Radi0logy: And I’m sure there will be numerous loopholes for them to weasel their way out of paying.
@pecan 3.14159265: What, you don’t trust American car makers??
@Radi0logy: apparently I missed out on the memo that Ford vehicles are crap. I purchased a brand new Ford Escape the week before they announced this offer and here I am about a month later and the car is already in the shop because of a defective central computer. They claim they can’t get the part for another month so I am SOL for the next month. WTF, thanks for the POS FORD!
I was looking at a Hyundai Tucson. Didn’t like it. HELLO FORD EDGE!
@BuddyGuyMontag:
Personally, I’m waiting for the Hyundai Albuquerque
Lose Your Job? *TAXPAYERS* Makes Your Payments For A Year
-Fixed that for ya
@snowmoon: You might want to brush up on your facts.
@Yossarian: If you don’t believe that taxpayers will be on the hook either directly or indirectly I have a bridge to sell you.
@Yossarian: Correct. Ford never took any bailout money.
@dragonfire81: Ford was not forecasted to make it past April 2009 without intervention(s) on the part of the Bush and Obama administrations.
Between below market lines of credit ( yet to be used, but being requested ), fed buying of short term debt ( CPFF ), and bailing out the shared suppliers Ford has benefited from direct and indirect stimulus.
@Yossarian: Since when have commenters ever let facts get in the way of weak snark?
@snowmoon:
Bottom line is that Ford has not taken any bailout money and doesn’t expect to soon, regardless of when you “think” they’ll need to take money. Please get your facts straight before disseminating your filth.
@Kevin Weber: CPFF and indirect stimulus are the only reason Ford is not bankrupt as of next month.
They are still in negotiations for between 9 and 20 billion dollars of funding from the taxpayer.
I wish this worked retroactively to affect the kind of car I could afford. Hey Ford, I lost my job, will you make the payments on my 1994 Escort?
1) Spouse works part time
2) You need a new car anyways
3) Profit!
This would have been a great idea if Ford was sitting high on tax dollars right now.
@Gokuhouse: was = wasn’t
@Gokuhouse: Ford hasn’t taken bailout money.
@BuddyGuyMontag: They don’t read any other comments before they comment I guess.
Maybe Ben can put it in TFA, not that they read that either.
I work freelance and “lose my job” every couple of months. Wonder how this would work for people in my situation?
If you need a new automobile and think there is even a %10 chance that you will lose your job, is buying a brand new car the wisest decision? I know people need transportation for getting to work but if you foresee yourself in a tight spot then maybe getting something used is your best option. Get the smallest payment possible on a beater and ride out this storm.
Are the payments that Ford is making for you considered taxable income?
How would this work with the unemployment I’m guessing you’d be getting at the same time? Would this be considered ‘income’ of some sort that might screw you?
Here’s a correct us of “living under a bridge” Are you guys living under a bridge? Ford hasn’t taken any government money!
I wonder what happens if a Ford employee loses his job… will the 12 months of payments be deducted from his severance?
GM’s deal only lasts until April 30th, better buy quick!
At least Ford hasn’t taken any taxpayer funded welfare. GM and Chrysler are offering the same sort of deal, which is basically paid for by taxpayer funded welfare. So, we, the taxpayers, will get to cover the unemployment coverage for those 2 companies. This is a sick situation.
There are quite a few industries that extend credit that could benefit from including some sort of clause that lets you delay payments for a period of time in the case of a work loss. It would solve a big percentage of the defaults.
If you can’t buy it and pay cash for it then why do you need it.
Ok, that is a bit harsh. But it also reality. Overbuying and excess risk (on many levels) is the cause of our current economic problems.
@Corporate-Shill: I hope you don’t think less of me because I didn’t have enough cash to buy my house.
wow thats pretty funny where the american auto makers and getting their ideas from hyundai…
I used to hate ford, but this whole economy thing has garnered new respect from me, for them. They are the only one that actually seems to be restructuring their business in a meaningful way, and have new cars coming out that are well designed, tested, and will probably have a lot of good demand (Fiesta, Fusion Hybrid, etc). They are also refusing government assistance. I might be buying a car this year or the next, and Ford will definately be on my list, unlike GM/Chrysler.
It’s great that they’re offering this, but if I remember a past article here, no one took Hyundai up on the offer to return their car after losing their job. So the cynic in me sees Ford and GM thinking that they won’t really have to worry about many, if any, people taking them up on their offer.
@undefined: @Eyebrows McGee (on Twitter: LPetelle): When I was selling a car a few years ago, the consensus of those I asked said KBB was usually high and Edmunds was usually more correct.
Easy one. “Another Headache Plan from Ford.”
They’ll ask you to prove it while they process your request ignoring you while collecting payments.
After you prove it, they’ll say you quit.
Even after that! They’ll charge you for damages and details to the vehicle.
No matter what…..There is no good deal here.
If you buy a Ford and lose your job, the car-maker announced they’ll make your payments for up to a year, up to $700 per month. I am curious what the fine print will say. I have a feeling the restrictions will make it almost impossible for anyone to make a claim on this deal. That’s not a year’s worth of car payments– that’s two month’s worth of car payments.
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