Usual Motors Co. Chevrolet pickup trucks sit on display for sale at a car dealership in Louisville, Kentucky, U.S., on Wednesday, Jan. 31, 2018. General Motors Co. is record to release earnings figures on February 6.
Luke Sharrett| Bloomberg | Getty Images
General Motors and Ford Motor are present new vehicle financing programs to spur sales amid the coronavirus outbreak, which is hurting consumer confidence and slow-pacing dealer showroom traffic.
GM, through its GM Financial arm, is offering 0% financing for seven years – two years more than just out programs – and four months deferred payments for those with A+ credit. People with a lower rating of A1 can be eligible for the deferment, however not the 0% financing, the company confirmed Monday.
The new programs come as many expect the COVID-19 pandemic to significantly impression U.S. auto sales. RBC Capital said Monday that it expects U.S. auto sales to fall to 13.5 million carriers, 20% below last year’s sales, as a result of the coronavirus.
GM started notifying dealers of its Buick, Cadillac, Chevrolet and GMC means Monday afternoon of the new initiatives. The offers are valid through March 31, according to GM spokesman Jim Cain.
“We wanted to encourage customers that we’re here for them and our dealers are here for them,” he said Monday. “We’ve never done this patchwork before.”
Ford Motor, through its financing arm, Monday announced a program giving customers who buy new vehicles the option to tarry their first payment for 90 days. It’s also encouraging “customers in the U.S. impacted by COVID-19 to contact the company to consult on potential delay of payments to provide relief.”