Widespread unemployment is causing havoc in the auto lending industry.
And manufacturers are investigating ways to help customers but is it enough?
That's the topic of this week's episode of AutoComplete where I 'll be speaking to Road Shows, Andrew Crock.
As of last week, the US saw 6.6 million people file unemployment claims.
People are losing their jobs due to quarantine mandates.
And as a result, they're gonna have trouble paying their bills.
Some automakers are starting to offer relief programs kind of like they did during the 2008, 2009 financial crisis to help defer car payments.
Is this enough or do you think this should be going further?
Well, I mean, frankly, the situation is messed up for everyone.
It doesn't matter if you're a person a business anywhere in between on the legal spectrum.
It's things are weird right now and I think everyone is trying to do what they have in there.
In their toolkit to help out.
Which is nice.
They're certainly under no obligations to do so.
They're a business of course.
There are underlying motives to try and get customers back in their doors once everything gets back to normal but for the most part, I think the other makers are doing a pretty good job as is.
Sure, I mean, yeah, there's the idealist in me who's like yeah, maybe they could be doing more but I mean, where does the slippery slope end there?
Should they just be giving out free cars?
Should they be doing complete deferments, I mean, most of the time your car notes through the bank, so there's kind of a middleman situation there.
I don't really know but for what they're doing and for the fact that they kinda wanna keep the lights on once everything goes back to normal.
Cuz a car's no good to you if the auto maker doesn't exist.
I think they're doing a great thing right here.
The OEM's are riding the line perfectly fine, I think most people recognize that.
And I think what they're doing I would say at the minimum is adequate.
And currently, we're showing that there are I mean as of recording, there are seven major manufacturers with relief plans in place.
I mean, notably, Hyundai and of course its sister companies Kia and Genesis.
And then you know, Nissan Ford, General Motors etc, etc.
Do you think that you know these kinds of plans are going to benefit the companies if.
Slash when the economy recovers, is it gonna be a case of like, Hey, I remember that company did a good thing for me while I was down on my luck, like, I'll buy another Genesis or whatever.
Is that something that that you anticipate, more companies sort of getting in on while the getting's good?
Figured really speaking.
I mean, it's good PR plain and simple, right?
The big boys have a little guy for a few months and then exchange there may be more likely to be the top of that person shopping list when it comes time to actually get outside and go to the dealership again, whether it's in a matter of months or years or whenever that person needs a new car.
I mean, the average age of a car on the road these days is 11 years but for those of us who have new cars, mine is Just a couple of months out of warranty.
I really think that a little help goes a long way and considering how this is such a major event that people will undoubtedly be talking about for years to come.
I think having an automaker connection to that word they kind of helped you out in a time of need will definitely go a long way.
It's pretty obvious that they're just
Fostering goodwill in addition to trying to keep their customers from going completely bankrupt in the middle of this crisis.
So, of course, you'll get more than a few cynics out there who won't really think or care about that kind of stuff.
But for the most part, I'm thinking the average consumer will pretty much follow the you scratch my back and I'll scratch yours mentality here.
That's it for this episode of autocomplete.
As always, I've been Kyle Hyatt.
You've been great.
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Until next time, stay home.
Stay safe and be excellent to one another