CARY, N.C. -

Automakers and their captive finance companies rolled out generous offers to keep new-vehicle deliveries going during the coronavirus pandemic; efforts such as 0% annual percentage rates for 84 months for well-qualified buyers.

Perhaps, not quite to that generous level, some captives and other finance companies launched efforts to help used-vehicle financing, too, especially for certified pre-owned models.

“During an economic slowdown, there is a natural shift towards used-vehicle demand. But savvy captive lenders (like Nissan and Acura) are sweetening the deal even further with deferred payments and CPO financing deals on par with new-vehicle offerings," said Eric Lyman, chief industry analyst at ALG and TrueCar.

“Emphasizing used-vehicle incentives now, early on in this downturn cycle, will pay dividends down the road,” Lyman continued in a message to Auto Remarketing. “This will build momentum for CPO sales, supporting faster turn rate of higher profit-per-unit used sales for dealers and reaching out to consumers who could establish longer-term relationships as loyal customers once economic conditions improve.

With perhaps Acura and Nissan taking the lead, here is a rundown of used-vehicle financing special programs shared so far with Cherokee Media Group:

Acura and Honda

Existing Acura and Honda Financial Services (AFS/HFS) account holders can secure payment extensions and deferrals of up to 60 days, as well as late fee waivers to those impacted by COVID-19

The captives also are rolling out certified pre-owned special APRs for the Acura TLX and RDX from April 1 to June 1 as well as the Honda Civic, Accord and CR-V from April 17 until June 1.

And for dealers, the automaker is also offered a 40% reduction in CPO fees through April 30.

Ally Financial

The company is offering 90 days of payment deferment for new customers who acquire a used vehicle. Ally is also offering free, 30-day lease extensions for customers whose leases are maturing in March and April. 

Hyundai

Hyundai will make up to six months of payments for vehicle owners who lose their jobs and have purchased or leased their vehicle between March 14 to April 30 through Hyundai Motor Finance.

Lexus and Toyota

Toyota Financial Services and Lexus Financial Services are offering 90-day payment deferrals to customers who purchase a certified pre-owned Toyota or Lexus vehicle.

Nissan

Nissan Motor Acceptance Corp. (NMAC) will offer 90-day deferred payments and terms up to 72 months for CPO customers.

Truist Financial

The merged commercial banks have multiple offerings for used-vehicle financing.

Its BB&T Dealer Financial Services and SunTrust Dealer Financial Services programs include delayed first payments of up to 90 days on used vehicles.

Furthermore, its SunTrust Dealer Financial Services as well as programs through the Truist Financial brand now include 84-month terms on used-vehicle financing for the 2018 to current model years. Both programs are subject to the published program guidelines and qualifications. 

While this list currently does not include all OEMs and finance companies, Edmunds executive director of insights Jessica Caldwell isn’t expecting a wide-ranging effort for used-vehicle financing like companies have pushed and promoted to get new metal going.

“Auto companies are up against so many other issues right now that it’s unlikely that they’re going to be focusing much on used vehicle financing,” Caldwell said in a message to Auto Remarketing.

Cox Automotive chief economist Jonathan Smoke is taking a cautious approach, too, when considering financing and retailing for both used and new vehicles in the near term.

“We could see a rebound in the second half of the year depending on what happens with the virus and the economic response,” Smoke said in a video posted on March 24.

“Given the negative trends we’ve seen in connection with the virus, we continue to see negative trends in terms of demand. The (Federal Reserve) is doing whatever it takes to keep the financial markets functioning to keep the economy from seeing even worse outcomes,” Smoke added.