Hyundai started it all. The Hyundai Assurance was the genesis (no pun intended) of the ‘payment protection plans.’ Now Ford has one called Advantage Plan and GM named theirs Total Confidence.
The TV ads seem so sympathetic towards the consumers and are well produced. They all look genuine, but they don’t tell you what the really important details are.
So which one is the best? Not withstanding the vehicles, of course, we will detail out the three plans, and we think you should be able to figure out which one is the best for you.
Hyundai – Assurance
-Hyundai will give you $500/month for 6 months
- Must have made at least 2 payments and is current on payments
- Can be financed with any bank or financial institutions
- 12 month coverage
- Anyone is eligible including the self-employed (only if bankruptcy was filed)
- Covers up to $7,500 negative equity
Ford – Advantage Plan
- Must be combined with Ford Motor Credit’s 0% financing program
- Ford Motor Company pays Ford Motor Credit directly up to $700 per month for up to 12 months
- Must be a full-time paid employee on the job for more than 90 days; part-time or self-employed not eligible
GM – Total Confidence
- GM pays the bank or financial institution up to $500 per month for up to 9 months
- Leases are covered for the payment protection but not the vehicle value protection
- Must be a full-time paid employee on the job for more than 12 consecutive weeks prior and 90 days after purchase; part-time or self-employed not eligible
- Vehicle Value Protection covers only if you trade it in for another GM vehicle and they will cover up to $5,000 negative equity if traded-in to a GM dealer, or $2,500 for private party sale
- Will not cover all the negative equity if you have financed more than 110% of the MSRP
A few things to note. Hyundai’s plan seem to have the least amount of restrictions. If you have lost your job, you sell the car back to Hyundai and walk away. Then, Hyundai will cover up to $7,500 of negative equity. You pay the rest if the negative equity is more than $7,500. Also, if you are self-employed, obviously the best bet is Hyundai.
Ford’s plan has a big catch. You must be able to qualify for and take advantage of their 0% financing program. If you don’t qualify and decide to use another bank, credit union, or home equity loan, then tough luck for you. Furthermore, let’s say that you cannot find a job for more than 12 months, you’re stuck with the car and the payments.
Lastly, GM’s plan has the most particulars and the least coverage. After 9 months, you might be stuck with the car and the coverage… that’s if you have met all their guidelines.
-KF
