Free Car Payment Insurance: What's The Catch?
Published on Tuesday, 15 May 2012 23:08 Written by Reyna Gobel
When you're unsure about buying a new car because the job market looks shaky and your current job doesn't feel stable, is there any reason why you should take the new-car-payment plunge? One reason might be car payment protection plans that are offered for free by car makers such as GM (NYSE:GM), Hyundai (OTC:HYMLF) and Ford (NYSE:F).
How Does It Work?
When you lose your job in a way in which you would qualify for your state's unemployment compensation program, your payments will be made for you up to a set amount and for a set number of months. However, if your pay is reduced and you can't afford the payment anymore, you're out of luck with this program.
Just like a warranty, the payment protection has to occur within a specified time period. For instance, the dealership may make these payments for six months or more if you lose your job within one or two years. The exact terms vary widely and you will want a copy of the terms in writing before you purchase your new vehicle.
When Is It Available?
The dates of these payment plans vary, but the protection plans gained popularity in spring 2009. However, since it is an incentive to buy a car, it could disappear and reappear at any time. Thus, you should always ask car dealers if this feature is currently being offered.
How Much Does It Cost?
It's a free incentive in addition to rebates and other incentives. You will not have to pay more for your car to get this service.
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