VW Is Offering Free Job Loss Protection For New Car Buyers Amid COVID-19

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - April 15, 2020

VW is now offering built-in job loss protection with every new vehicle it sells amid the coronavirus pandemic. According to a bulletin sent to dealers today, those financing through VW Credit will be able to have their car payments waived for up to 6 months in the event of involuntary employment as a result of COVID-19.

The incentive, dubbed the "Volkswagen Pledge", is available today through April 30 along with the brand's other offers. However, it's important to note that the offer is only available when buying but not when leasing. The deal is worth up to a maximum of $750/month and no more than $4,500 over a 6-month period.

The automaker's definition of "involuntary employment" is complex but essentially defined as "COVID-19 economic conditions, lockouts, individual and mass layoffs, or loss of employment due to business failure or bankruptcy." Unlike most competitors, it's important to note that this is a waiver rather than a deferral.

So is this really all that significant?

Automakers don't normally build-in a provision at no extra cost offering to waive payments in case you lose your job. In contrast, payment deferrals generally come with the caveat that interest continues to accrue. Here, VW is offering to have new customers' backs amid the uncertainty surrounding COVID-19.

That said, there's a significant amount of fine print according to the offer's terms & conditions.

For example, VW says the offer is available nationally except in New York due to state regulatory restrictions. The offer also says your unemployment date must be more than 90 days after the date you entered into the finance contract. In addition, you must be involuntarily employed for more than 30 consecutive days. Another important detail is that the benefit will be available for up to 12 months after purchase.

VW's offers of assistance are quickly piling up, rivaling comprehensive offers we've seen from Hyundai. In addition to helping communities deliver essential supplies, the brand is also helping produce personal protective equipment (PPE). Our recent analysis has also found some stellar deals on new & used cars.

Nearly every new VW now features 0% APR for 72 months plus a 6-month payment deferral. In a significant development, the automaker is even offering interest-free financing on most certified preowned vehicles. That's unusual because used car rates are typically higher compared to new cars & trucks.

Explore All Coronavirus Deals & Assistance Offers »

, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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