By David Thomas on March 31, 2009
Earlier this morning Ford announced its new assurance program covering up to 12 months of payments if a new-car buyer loses his source of income. Minutes ago, GM announced a similar plan. It covers up to nine months of payments of $500 a month, and it will cover any negative equity in your vehicle if you trade it in on a new GM. The program starts Wednesday and runs through April 30.
What does that last part mean? As far as we can decipher from GM’s brief press release, if you buy a new GM car today and after 24 months of ownership you trade it in for a new GM car, GM will pay the difference if you owe more than the car is worth. There is no mention of a cap on this amount, and we will update this post as soon as we learn of one.
This equity protection requires any owner to have paid off half of the term no matter the length. So if you have a six-year deal you must pay through 36 months before trading the new car in to qualify.
GM is launching a website for the program at gmconfidence.com, but the site is not yet live.
Managing Editor David Thomas has a thing for wagons and owns a 2010 Subaru Outback and a 2005 Volkswagen Passat wagon. Email David