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Car companies provide payment relief for US customers amid coronavirus outbreak

Several carmakers in the United States are allowing new car buyers to delay or reschedule their car finance payments amid closures and financial uncertainty caused by the coronavirus (COVID-19) outbreak.


In an effort to maintain new car sales during a time of financial uncertainty, manufacturers like Ford, Hyundai, General Motors, Toyota and Nissan are offering their US customers alternate options if they can't continue to make payments.

According to The New York Post, Ford announced this week that its credit unit would allow customers to delay their first payment for 90 days.

 

Drive

Ford Australia told Drive its partner 'myFord Finance' was also "proactively reaching out to retail customers about ways they can support them".

"We’re also working closely with our dealer partners through this challenging time,” a Ford spokesperson said.

Last week, Hyundai in the US said it was reviving its Hyundai Assurance Job Loss Protection Program to give owners "peace of mind in uncertain times," deferring payments on select new cars by 90 days and providing up to six months of payment relief for customers disadvantaged by job losses.

A representative for Hyundai Australia said there were no plans at this stage to implement a similar program locally.

Nissan told the NY Post it was planning to launch a similar payment relief program in the US, while Toyota US and General Motors will also provide alternative options to customers affected by the virus, including payment extensions and deferrals.

As for Australia, a Toyota spokesperson told Drive: "Toyota Finance Australia cares about the safety and well-being of its customers. We are continuing to monitor the situation closely and stand ready to help affected customers."

Drive approached Nissan Australia for comment as to whether they would be implementing payment relief options locally and is awaiting an official response.

A June 2019 report from Moody's financial services found auto loan delinquency rates in Australia were on the rise and were predicted to continue rising.

In 2018, a finder.com.au analysis of Australian Bureau of Statistics data found one in five cars in Australia were purchased using a loan.

New payment deferral measures in the US come as GM, Ford and Fiat Chrysler face pressure from workers' unions to shut their American factories in order to contain the virus, which at this stage has infected close to 6000 people across the country.

This week, the Volkswagen Group acknowledged that 2020 could bring substantial financial challenges, after announcing that the company saw an increase in operating profit for 2019.

"The corona pandemic presents us with unknown operational and financial challenges," Dr Herbert Diess, Chairman of the Board of Management of Volkswagen Aktiengesellschaft, said.

"At the same time, there are concerns about sustained economic impacts. We will succeed in overcoming the corona crisis by pooling our strengths and with close cooperation and high morale in our Group."

Susannah Guthrie

Susannah Guthrie has been a journalist for over a decade, covering everything from world news to fashion, entertainment, health and now cars. Having previously worked across titles like The New Daily, Elle, Harper's Bazaar, People Magazine and Cosmopolitan, Susannah now relishes testing family cars with the help of her husband and two-year-old son.

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