More car manufacturers are coming out with schemes to offer peace of mind to potential purchasers worried about losing their jobs in the recession.
Honda (UK) is offering free payment protection against redundancy on all promoted Civics and CR-Vs purchased on Honda finance from April 1.
Honda will cover the monthly car repayments for up to a year, safeguarding customers should they be made redundant for more than three months.
The Japanese brand’s spring promotions also include 0% APR hire purchase or low deposit, low monthly payment PCPs at 4.9% APR.
Tom Gardner, head of marketing at Honda (UK), said: “We know that people still want to buy new cars.
“But everyone’s a bit nervous at the moment about making such a significant purchase. Our package of cost savings, financial offers and the security of payment protection is one of the strongest we’ve ever offered and should help our customers feel more confident about buying a Honda.”
Renault will offer free payment protection insurance in April fro customers buying new cars and vans.
The insurance will cover customer’s payments for the first 12 months of their Renault Finance agreement should they be unable to work through accident, sickness or redundancy.
It is included in Renault finance hire purchase agreements on new cars and vans ordered during April, including 0% and Renault Selections scheme.
Renault managing director Roland Bouchara said the move was “essential to encourage confidence” in uncertain times.
Volvo is offering payment protection insurance on new C30, S40 and V50 models in April, May and June.
Offered on purchases through Volvo Car Finance with its 5.9% APR programme, it provides life, accident and sickness cover.
The carmaker said it believed free insurance protection will be the answer to those people needing a new car but who have been put off making a major purchase because they are anxious about their job stability.
Peter Rask, managing director for Volvo Car UK, said: “We believe that there are many customers who still want to buy a car safe in the knowledge that should the worst happen and they are made redundant, they can still keep their car and continue to transport their family safely.
He added: “The new free-of-charge PPI delivers the ultimate peace-of-mind to prospective Volvo buyers.”