I’ve wanted to write about this new incentive when first announced a few weeks back, but been too busy so here it is. Ford and GM want to cover monthly payments for customers who bought new cars in the month of April and May 2009 and lost their jobs within the programs’ duration of coverage.

Ford’s program will take over customers’ monthly payments (up to $700 per month) for one year if a new Ford, Lincoln or Mercury vehicle is bought by the end of May. Ford’s program ends on June 1st. Likewise, GM will cover new car purchases for up to nine months of $500 per month, and GM’s program ends on April 30.

Both Ford and GM are trailing Hyundai in offering deals tied to a customer’s job loss. Earlier this year Hyundai launched a program that allows a customer to return a newly bought vehicle within a year if they lose their job. The company later added a 3-month free payment deal if the buyer loses his/her job. See my post on “Buy a Truck and Get a Car for a Buck.”

It’s clear that this is an attempt by car manufacturers to get some traffic into their showrooms, but with jobless rates still at record highs and the economy having no sign of recovery, the incentives may not mean much to anyone. I’m sure there will be folks who can afford it and will take a great deal any day. But for those who may be at risk of losing their job, buying a new car is probably not their top priority right now, incentives or not.

Here’s a video on the Ford and GM incentives, courtesy CNN, March 31, 2009.

New Ford and GM Incentives Pay For New Cars If Owners Lose Jobs is a post from: CleanCarTalk