Cincinnati, OH – April 22, 2009. LeaseCompare.com, a leader in online direct-to-consumer auto leasing and financing, today announced a program to help protect consumers with car payments who lose their jobs.
LeaseCompare.com’s Guaranteed Payment Program is the first of its kind that covers any new or used vehicle model, from any dealer or private party. Customers are automatically enrolled in the program at no additional cost when they finance, lease or refinance a vehicle through LeaseCompare.com.
The program pays a customer’s monthly car payment up to $600 per month for 12 months of coverage. Payments are made directly to the lien holder.
“Consumers who are unsure about their current employment situation are hesitant about buying a new or used car,“ says Tarry Shebesta, President of LeaseCompare.com. “Our Guaranteed Payment Program gives them peace of mind knowing they’ll still have their vehicle should they lose their income.”
“Programs like these can help spark auto sales and the economy by giving consumers confidence in buying a new or used car,” Shebesta added. “For many, owning a reliable vehicle is critical to earning a living at all.”
Details of the Lease Compare.com Guaranteed Payment Program:
Have peace of mind knowing you’ll still have your vehicle should you lose your income.
The program pays the monthly payment up to $600 per month for 12 months. Payments are made directly to the finance source.
The Involuntary Unemployment coverage has been provided in conjunction with the finance or lease of your vehicle by LeaseCompare.com for the protection of your loan or lease should you become involuntary unemployed. The job loss protection may provide for payments to the Lender toward the loan obligation for a maximum monthly benefit of $600 per month for up to 12 months in the event of Involuntary Unemployment.
Eligibility resulting from a borrower’s involuntary unemployment may qualify for amounts equal to the number of days of qualified unemployment. A ninety (90) day Vesting Period applies from the loan closing date in which no benefits are paid for an unemployment occurrence during this period. A thirty (30) day waiting period from the date of Involuntary Unemployment applies before any payments will be made. Borrowers of covered loans have no third party beneficiary rights, individually or jointly, under the terms and conditions of the Dealer or Lender Policy. The Purchaser of the Vehicle/Borrower has paid no consideration with regard to this coverage. The Purchaser of the Vehicle/Borrower may be requested to cooperate to provide certain information necessary to determine the payment eligibility.
In order for payment benefits to be paid, the Borrower of the Covered Loan:
* Must have been continuously employed for wages or salary for twelve (12) consecutive weeks prior to the date of unemployment on a full time basis (minimum 30 hours per week)
* Must not have knowledge of any impending Involuntary Unemployment as of the Effective Date.
* Must not be self employed, work for a family member or own greater than ten percent (10%) interest in their Employer’s business, be an independent contractor, or active military.
* Must be of legal age.
* Must file for and be eligible to receive State unemployment benefits.
* Must provide four (4) weekly copies of Unemployment Benefits payments. Failure to provide this information on a consistent monthly basis may reduce or void eligibility for future payments.
This program does NOT cover loss of employment due to: (1) Voluntary resignation; (2) Insubordination, performance-based separation, willful misconduct, a transgression of some established and definite rule, a forbidden act, where such transgression is willful, improper or wrongful behavior, which behavior is not mere negligence nor carelessness; (3) Normal seasonal
My Take: In terms of duration and coverage amount, this program tops GM’s and Hyundai’s, but not Ford’s. If you plan to lease a GM, it may be better off going with LeaseCompare for those two reasons alone. What’s even better is that they probably offer leases than GMAC (since GMAC isn’t providing a lot of lease support these days). Of course, you can also use them for any manufacturer that is currently not offering good lease support and doesn’t have a payment protection plan.