GM offering 0% financing for 7 years, deferred payments amid coronavirus outbreak

• GM Financial is offering 0% financing for seven years – two years more than recent programs – and four months deferred payments for those with A+ credit.
• The new programs come as many expect the COVID-19 pandemic to significantly impact U.S. auto sales.
• Ford on Monday announced a program giving customers who buy new vehicles the option to delay their first payment for 90 days.

General Motors Co. Chevrolet pickup trucks sit on display for sale at a car dealership in Louisville, Kentucky, U.S., on Wednesday, Jan. 31, 2018. General Motors Co. is scheduled to release earnings figures on February 6.

Luke Sharrett| Bloomberg | Getty Images

General Motors and Ford Motor are offering new vehicle financing programs to spur sales amid the coronavirus outbreak, which is hurting consumer confidence and slowing dealer showroom traffic. 

GM, through its GM Financial arm, is offering 0% financing for seven years – two years more than recent programs – and four months deferred payments for those with A+ credit. People with a lower rating of A1 can qualify for the deferment, however not the 0% financing, the company confirmed Monday.

The new programs come as many expect the COVID-19 pandemic to significantly impact U.S. auto sales. RBC Capital said Monday that it expects U.S. auto sales to fall to 13.5 million vehicles, 20% below last year's sales, as a result of the coronavirus. 

GM started notifying dealers of its Buick, Cadillac, Chevrolet and GMC vehicles Monday afternoon of the new initiatives. The offers are valid through March 31, according to GM spokesman Jim Cain. 

"We wanted to reassure customers that we're here for them and our dealers are here for them," he said Monday. "We've never done this combination before."

Ford Motor, through its financing arm, Monday announced a program giving customers who buy new vehicles the option to delay their first payment for 90 days. It's also encouraging "customers in the U.S. impacted by COVID-19 to contact the company to discuss potential delay of payments to provide relief."