Ford, GM to cover car payments if buyer loses job

[GT500-07]

DETROIT (AP) -- Ford Motor Co. and General Motors Corp. are offering payment protection plans to help reassure consumers who may be putting off buying a new car because of worries about losing their job. The offers come as auto sales have been battered by the recession and tight credit, reaching their lowest levels in 27 years. Ford said Tuesday it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs. The program runs until June 1.

 

http://finance.yahoo.com/news/Ford-GM-to-c...f-14797168.html

[jdscooby]

So in GM's (Government Motors) case, it will be us the tax payers covering the payment.

[tglockner]

Quality, Credit and Payment Protection you

can count on – that’s the Ford Advantage.

The Ford Advantage Plan lets you buy or lease a high-quality new Ford, Lincoln or Mercury

vehicle with the unparalleled peace of mind of the Ford Payment Protection Program.

1Based on cumulative survey data of 2008 model year Ford and competitive owners at three months of service in three surveys conducted 9/07-5/08.

2Star ratings are part of the U.S. Department of Transportation’s Safercar.gov program (www.safercar.gov). 3EPA-estimated 23 city/34 hwy mpg/combined

27 mpg, Fusion S, I-4 automatic, Milan I-4 automatic with Rapid Spec 101A. Midsize class per R. L. Polk & Co. Non-hybrid. 4EPA-estimated 41 city/36 hwy

mpg. Actual mileage will vary. Midsize class per R. L. Polk & Co. 5Based on unadjusted city fuel economy from EPA (10/08) and VCA (5/08). EPA-estimated

34 city/31 hwy mpg, front-wheel drive. Actual mileage will vary. Excluding vehicles built for Mazda. 6Not all buyers will qualify for Ford Credit limited-term

fi nancing. Take new retail delivery from dealer stock by 6/1/09. Excludes 2010 model year Fusion Hybrid, Milan Hybrid and 08/09/10 model year Mustang

Shelby® GT-500™ and 08/09 Shelby® GT-500KR.™ Program subject to change; see dealer for full program details and qualifi cations.

The Ford Payment Protection Program is available on all Ford,

Lincoln and Mercury vehicles – excluding E/F-450 and higher.

New vehicles purchased from March 31, 2009, to June 1, 2009,

are eligible for the Ford Payment Protection Program.

ALL-NEW 2010 Ford Fusion Hybrid

2009 Mercury Mariner

2009 Ford Edge

Program subject to change. See dealer for full program details and qualifi cations.

What Benefi t does the

Ford Payment Protection

Program offer?

• It pays the monthly amount due on your new vehicle

purchase/lease up to a maximum monthly benefi t of

$700, for a maximum of 12 Benefi t payments

• Benefi t is paid directly to your fi nancing source

• No cost to you

• It is important for you to continue to make your

monthly fi nancing payments on your account

until you have received notifi cation that your

Benefi ts have been approved in order to

maintain your current account status

What do I need to do to qualify for

these BENEFITS?

• Purchase/lease an eligible new vehicle between

March 31, 2009 – June 1, 2009

• Finance your new purchase/lease (cash and equity

line vehicle purchases are not eligible; vehicle must

be titled in the name of an individual)

• Be the primary purchaser/lessee responsible

for the fi nancing of the vehicle

• Be Involuntarily Unemployed for at least

30 consecutive days

• Become Involuntarily Unemployed after the fi rst

30-day exclusionary period immediately

following the purchase/lease of your Ford vehicle,

and before January 1, 2010

• Not have received notifi cation of Involuntary

Unemployment prior to your enrollment in the

Ford Payment Protection Program (i.e., the

date you purchased/leased your vehicle)

• Have been working full-time for 90 consecutive

days, at least 30 hours per week, immediately

before becoming Involuntarily Unemployed. This

program does not cover part-time, seasonal,

self-employed or persons employed by a family

household member. However, if you subsequently

become a full-time employee and later become

Involuntarily Unemployed, you may qualify for

Benefi ts provided you meet the stated eligibility

requirements

• Complete a Benefi t Form and submit all required

documentation within 90 days of the day you

became Involuntarily Unemployed in order to be

eligible for Benefi ts

continued:

2009 Mercury Mariner

Q&A 1. Who is covered under The Ford Payment

Protection Program?

Only the primary purchaser/lessee responsible for the

outstanding fi nancing of the new Ford vehicle is covered

under The Ford Payment Protection Program and is eligible

for Benefi ts. Co-purchasers and co-lessees are not covered

under this program.

2. What are my Benefi ts?

The Ford Payment Protection Program will pay, on your behalf,

the monthly payment (purchase: principal + interest / lease:

lease fee + taxes) due on your vehicle fi nancing up to $700

per month for up to 12 months provided you are Involuntarily

Unemployed before January 1, 2010, remain Involuntarily

Unemployed, and continue to submit proof of unemployment

on a monthly basis.

3. When is enrollment effective?

Your enrollment in The Ford Payment Protection Program

becomes effective the day you purchase/lease your new

vehicle. Please note, however, that there is a 30-day

exclusionary period. You must become Involuntarily

Unemployed after this initial 30-day exclusionary period in

order to qualify for Benefi ts, and then you must be

unemployed for at least 30 consecutive days before you

can request your Benefi t.

For example:

• New vehicle purchased/leased on: March 31, 2009

• Program Enrollment Date effective on: March 31, 2009

• 30-Day Exclusionary Period for Eligibility ends: May 1, 2009

• Involuntary Unemployment event must occur between May

1, 2009, and before January 1, 2010

• Involuntary Unemployment occurs May 2, 2009

• 30-Day Unemployment Waiting Period ends: June 1, 2009

In this example, the fi rst day you are able to request a Benefi t,

provided you meet all other requirements, is June 1, 2009.

4. What type of Employment is covered?

To qualify for The Ford Payment Protection Program you must

have been working full-time for 90 consecutive days, at least

30 hours per week, before you became Involuntarily

Unemployed. This program does not cover part-time (less

than 30 hours per week), seasonal, self-employment or

persons employed by a family household member.

5. What does it mean to become Involuntarily

Unemployed?

Involuntary Unemployment means that you are terminated

by your employer prior to January 1, 2010, due to individual or

mass layoff, strike, labor dispute or lockout. It does not include

termination of employment due to: retirement, normal

seasonal unemployment, resignation, voluntary forfeiture of

salary, wages or employment income, scheduled termination

of an employment contract, disability (as a result of sickness,

illness, disease, accident, pregnancy, injury or other cause)

and willful or criminal misconduct or incarceration. Also,

excluded is Involuntary Unemployment which occurred, or

for which you received notice of, prior to your enrollment in

The Ford Payment Protection Program (i.e. the date you

purchased/leased your vehicle).

6. How do I request for my Benefi ts to be activated?

If you become Involuntarily Unemployed prior to January 1,

2010, and believe that you have met all of the necessary

qualifi cations, call 1-888-262-9809 to request a Benefi t Form.

You must complete a Benefi t Form and submit all required

documentation within 90 days of the day you became

Involuntarily Unemployed in order to be eligible for Benefi ts.

An associate will be available to assist you Monday through

Friday, between 8 a.m. and 8 p.m. EST and will provide you

with specifi c instructions.

7. What documentation do I need to provide in

order to receive Benefi ts?

Along with a completed and signed Benefi t Form, provided by

the customer service representative, you need to submit the

following:

• Proper proof of unemployment: A copy of your State

Determination Letter, Unemployment check stubs,

Unemployment debit card statement(s) or

Registration Card

• A copy of your fi nancing agreement with the

Vehicle Identifi cation Number (VIN)

• A copy of your most recent monthly fi nancing statement

or coupon book (or similar documentation that shows the

fi nance source information including account number,

payment amount and payment mailing address)

8. Once I submit all of the required documentation,

how long will it take before I know whether my

request for Benefi ts was approved?

Provided that all the documentation has been submitted, it

generally takes 7-10 business days from the date we receive

your documentation before an approval for Benefi ts will be

issued. You will be contacted if any additional information is

needed in order to determine whether you have met all

eligibility requirements.

9. How do I know if my request for Benefi ts has

been approved?

2009 Ford F-150

2009 Lincoln MKS

continued: Q&A

NEW 2010 Lincoln MKZ

When your Benefi ts have been approved, you will receive a

letter advising you of your Benefi t approval and the amount

paid to your fi nancing source. It is important for you to

continue to make the required payments on your account

until you have received notifi cation that your Benefi ts have

been approved in order to maintain your account current.

10. When do my Benefi ts begin?

Once your Benefi t is approved, payments are retroactive to

the day you became Involuntarily Unemployed (subject to

verifi cation). Benefi t payments will then continue on a monthly

basis, in 30-day increments, provided you continue to

submit the required documentation for each month you

remain Involuntarily Unemployed, up to the program

maximum of 12 months.

For example:

• You purchased/leased the vehicle on June 1, 2009

• Your 30-day exclusionary period for eligibility ends on

July 1, 2009

• You become Involuntarily Unemployed on August 1, 2009

• Your 30-day unemployment waiting period ends on

September 1, 2009

• You call to request a Benefi t Form on September 15, 2009

and submit the required documentation by September

30, 2009

In this scenario, a monthly benefi t payment(s), retroactive to

August 1, 2009 will be issued. Then, monthly Benefi ts will be

disbursed provided you continue to submit the required

documentation for each additional month you remain

Involuntarily Unemployed, up to the program maximum of 12

months. If you have questions on how your Benefi t payments

will be applied to your fi nancing account, please contact your

fi nance source directly.

11. Once my Benefi t is approved, will my Benefi t

be paid on the day that my monthly fi nancing

payment is due?

No. The Benefi t is paid once all required documentation has

been received and reviewed, and your Benefi t request

has been approved. Because of this process, the Benefi t

payment may or may not be issued on the precise day when

your monthly fi nancing payment is due. As such, it is important

that you continue to make your required monthly fi nancing

payments until your Benefi t has been approved.

12. What about fi nancing payment amounts that

are above the $700 maximum monthly Benefi t?

The Benefi t paid is the scheduled monthly purchase/lease

payment established with your fi nancing source when the

fi nance agreement was originated, up to a maximum $700

per month Benefi t. The purchaser/lessee is responsible for

monthly fi nancing payment amounts above the maximum

$700 per month Benefi t.

13. Will the Benefi ts cover any late fees I have

accrued because I was not able to pay my bill

on time?

No. The Benefi t only serves to cover your standard vehicle

payment obligation and not any additional fees associated

with your account.

14. How do I continue to receive my Benefi ts?

In order for your Benefi ts to remain active, you must submit

proof of continued Involuntary Unemployment (a copy of your

State Determination Letter, Unemployment check stubs,

Unemployment debit card statement(s) or Registration Card

on a monthly basis along with your continuing Benefi t Form.

15. If I get a job but fi nd myself Involuntarily

Unemployed again, can I request for my

Benefi ts to be activated again?

Yes. If you fi nd yourself in a situation where you are again

Involuntarily Unemployed in 2009, you are eligible to request

the remaining available Benefi ts provided that you:

• Have met the requirement to be a full-time employee for 90

consecutive days, at least 30 hours per week, immediately

before you became Involuntarily Unemployed again in 2009

• Have been unemployed for at least 30 consecutive days

• Have not reached the 12-month maximum Benefi t payout

• Meet all other eligibility requirements

16. If I run out of Benefi ts, can I reapply for Benefi ts?

No. Once 12 monthly Benefi t payments have been disbursed

no additional Benefi ts are available.

17. If I pay off my loan because I refi nanced my

vehicle before January 1, 2010, but become

Involuntarily Unemployed, am I still eligible to

receive Benefi ts?

Yes, you are still covered as long as you:

• Still have the vehicle originally purchased

• Are still the primary purchaser/lessee responsible

for the vehicle fi nancing

• Have a monthly vehicle payment due with a fi nancing

source for the vehicle originally purchased/leased

• Continue to meet all other eligibility requirements

18. If I sell my vehicle, is the new owner covered

under The Ford Payment Protection Program

as well?

No. The Benefi t only covers the original purchaser/lessee of

the vehicle. These Benefi ts are not transferable.

19. Am I paying for this program?

No. This program is offered to you as a valued customer, free

of charge and compliments of Ford Motor Company.

20. What do I have to do to be enrolled?

Nothing. You are automatically enrolled in The Ford Payment

Protection Program as of the effective date of your new vehicle

purchase/lease.

21. If I don’t use The Ford Payment Protection

Program, can I still get a credit for the unused

amount?

No. The purpose of The Ford Payment Protection Program is

to assist loyal Ford customers during a time of need. The

program has no credit or cash value to the customer outside

the Benefi ts Approval process.

22. Do I have to pay the Benefi t back?

No. These Benefi ts do not need to be repaid.

[ati]

So in GM's (Government Motors) case, it will be us the tax payers covering the payment.

 

Only In America

[ati]

DETROIT (AP) -- Ford Motor Co. and General Motors Corp. are offering payment protection plans to help reassure consumers who may be putting off buying a new car because of worries about losing their job. The offers come as auto sales have been battered by the recession and tight credit, reaching their lowest levels in 27 years. Ford said Tuesday it will cover payments of up to $700 each month for up to a year on any new Ford, Lincoln or Mercury vehicle if consumers lose their jobs. The program runs until June 1.

 

Good Job President Obama or should I say Mr. CEO at GM.

Why don't you just give the F##king cars away, That way you can eliminate the payment protection plan.

First your making mortgage payments and now car payments W.T.F.

Just raise the working mans taxes to cover this, We don't mind.

Where does this Knuckle Head get his ideas?

[kahmann]

This was Obama's idea?

 

Ken

[jdscooby]

Heard on a news porgram that they could just take all the bailout money for GM and distribute it among the employees to the tune of about 500,000 per employee. That takes care of the employees, then shut GM down. No more money lost. Lets the other automakers make money, potentially hire the workers from GM. Why not?

 

Government does not belong in private enterprise period.

 

Honest question. Are Obama supporters out there truely comfortable with the path we are going down?

[stump_breaker]

You guys are going to love this. On my lunch break I went to the local GM dealership to talk to a friend of mine.

 

Today the incentives at either $4000 off or 0% interest with a credit union discount of something like $250.

Tomorrow the incentives and prices are INCREASING by 5% since GM is cutting the truck production in 1/2. So for a $30k truck, add another $1500.

 

That puts them almost as expensive as a FORD truck!

[SexyStang]

I'm sorry but I so disagree with this plan.... I feel for the people that lost their jobs trust me I hear about it everyday at work.... but I personally work my @SS off and still can't afford to buy a NEW Car...... Will someone pay the rest of my car loan off?? Hello Mr. Obama I can't hear you????

 

 

 

[shel-b001]

I'm sorry but I so disagree with this plan.... I feel for the people that lost their jobs trust me I hear about it everyday at work.... but I personally work my @SS off and still can't afford to buy a NEW Car...... Will someone pay the rest of my car loan off?? Hello Mr. Obama I can't hear you????

 

 

 

I hear you not a fair system.

[Guest markham51]

Obviously very few of you understand anything about the economies of the car industry (or for any company with high fixed overheads for that matter) and you just love to just dismiss every idea that comes along "out of hand "so you can to slap each other on the back and sing your right wing platitudes.

 

Part of me wants to spend the next half hour explaining to you why this makes good business sense, but the other half says its going to be way over your head anyway! So, Ive said my peace and you can get back to what you do best....all together now....right wing media, government out of the markets, too much regulation, Obama is going to take our guns, too much taxes this and too much government that.

[ati]

Obviously very few of you understand anything about the economies of the car industry (or for any company with high fixed overheads for that matter) and you just love to just dismiss every idea that comes along "out of hand "so you can to slap each other on the back and sing your right wing platitudes.

 

Part of me wants to spend the next half hour explaining to you why this makes good business sense, but the other half says its going to be way over your head anyway! So, Ive said my peace and you can get back to what you do best....all together now....right wing media, government out of the markets, too much regulation, Obama is going to take our guns, too much taxes this and too much government that.

[jdscooby]

Obviously very few of you understand anything about the economies of the car industry (or for any company with high fixed overheads for that matter) and you just love to just dismiss every idea that comes along "out of hand "so you can to slap each other on the back and sing your right wing platitudes.

 

Part of me wants to spend the next half hour explaining to you why this makes good business sense, but the other half says its going to be way over your head anyway! So, Ive said my peace and you can get back to what you do best....all together now....right wing media, government out of the markets, too much regulation, Obama is going to take our guns, too much taxes this and too much government that.

So you are 100% comfortable with the path that the current administation is taking us down?

[Guest markham51]

Yes, under the circumstances I believe it makes good business sense and obviously Ford does too. They will try it out and see if it boosts sales. Nothing ventured, nothing gained when you are bleeding cash as fast as these guys are.

 

My next door neighbour is buying a new GM in the next two weeks. The deals are really good right now and his wife's Tahoe is getting long in the tooth. He plans to buy a fuel efficient crossover this time and has always been a loyal Gm customer even though he is not a "car guy." He knows the government is comitted at GM survival and he is not worried one bit about buying a GM right now.

[jdscooby]

Yes, under the circumstances I believe it makes good business sense and obviously Ford does too. They will try it out and see if it boosts sales. Nothing ventured, nothing gained when you are bleeding cash as fast as these guys are.

 

My next door neighbour is buying a new GM in the next two weeks. The deals are really good right now and his wife's Tahoe is getting long in the tooth. He plans to buy a fuel efficient crossover this time and has always been a loyal Gm customer even though he is not a "car guy." He knows the government is comitted at GM survival and he is not worried one bit about buying a GM right now.

I do not have a problem with Ford doing this program as they have not taken any bailout money. I do have a problem with GM doing as they have and will get more bailout money which makes the taxpayer responsible for taking over the payments if you lose your job.

[RUFDRAFT]

I predict a long life for this thread!

[DDT]

Obviously very few of you understand anything about the economies of the car industry (or for any company with high fixed overheads for that matter) and you just love to just dismiss every idea that comes along "out of hand "so you can to slap each other on the back and sing your right wing platitudes.

 

Part of me wants to spend the next half hour explaining to you why this makes good business sense, but the other half says its going to be way over your head anyway! So, Ive said my peace and you can get back to what you do best....all together now....right wing media, government out of the markets, too much regulation, Obama is going to take our guns, too much taxes this and too much government that.

 

 

 

So true....................

[jdscooby]

 

So true....................

So you are also 100% comfortable with the path the current administration is taking us down?

[DDT]

So you are also 100% comfortable with the path the current administration is taking us down?

 

Anyone says they are 100% comfortable with any administration would be a Lie..........

[jdscooby]

Anyone says they are 100% comfortable with any administration would be a Lie..........

Then lets try this. The tax payers should make car payments for people who buy a new car and then lose their job?

[DDT]

Then lets try this. The tax payers should make car payments for people who buy a new car and then lose their job?

 

Problem is the buyer of the cars is the "TAX PAYER" until they loose their job??????????

[jdscooby]

Problem is the buyer of the cars is the "TAX PAYER" until they loose their job??????????

So that is a yes then.

[DDT]

So that is a yes then.

 

Hey, It's your story man.......I mainly just ask questions???????????

[jdscooby]

Hey, It's your story man.......I mainly just ask questions???????????

 

Yeah, what was I thinking? Get an answer to a simple question. Your right, too much to ask.

[2010 Grabber Blue Shelby]

Wow, that's nuts. Isnt this how we got into this trouble to begin with...lending money to those who cant afford to repay it?

 

Back in early 2000's I lost my job due to the business moving overseas. I didn't ever want to be in this position again, so I decided to sell my new 2-year old 2800 sq foot house, bought a smaller fixer-upper that I just paid off last month, which enabled me to put my order in for a 2010 GT500. My house aint perfect, but its mine... Almost debt free in my young 40's. Yes I have car loans and if I can't pay them, Ill just sell the cars to payoff the loan. It's called responsibility and accountability.

 

By the way, two years ago I decided to get out of manufacturing because I saw too much work going to India and China, which is reason #2 why our economy is in the tank. If government wanted to really do something they could put big tarrifs on overseas products and services. I took my skills and transferred them over to something they cant ship overseas.

 

I did tank on my 401K. Didn't see that one coming.

[svttim]

I understand what they are trying to do. Everyone is afraid of loosing thier jobs ao they dont buy. If I wouldnt have lost mine already, I would be looking at a Shelby GT right now. So, yes, it works

[Guest markham51]

I understand what they are trying to do. Everyone is afraid of loosing thier jobs ao they dont buy. If I wouldnt have lost mine already, I would be looking at a Shelby GT right now. So, yes, it works

 

 

Bingo!

[ingram4868]

Will Ford cover my medical bills if I go insane trying to get the TSB performed before something fails leaving me stranded?

 

Who said that? What did you say? Get out of my head.

[2007GT]

Part of me wants to spend the next half hour explaining to you why this makes good business sense, but the other half says its going to be way over your head anyway!

 

I see that condescension is practiced in Canada as well as in the U.S. Boy, I sure hope I can be as smart as you someday.

[goumoun]

It takes some sacrifice to get out of the terrible situation the big 3 are in. Most of these people who are going to ask for a credit under these terms are going to see their personal situation screened more seriously than it was in past years I believe, so not that many of them will end up jobless for long time.

 

Today, sales is a matter of death or life, otherwise banckruptcy is around the corner. If this happens, expect that your next car may well be made in Asia, meaning also that there will be less tax payers in the US. Not so good.

 

Another thought: I see on TS many complaints on the new administration. This is not specific to US and I see it here also. Well let's not forget how lucky we all are to live in a democracy. Downside of that is that not all decision are in line with our way of thinking. Respect to democracy means acceptance of that, otherwise the road is wide open to the kind of regime that put in jail anyone thinking differently. Stop moaning and if it really matters to you, enroll in politics to make things change your way. Just my 2c.