Coronavirus

Ford, Goldman Let Customers Skip March Loans, Credit Payments

Some Automakers, Goldman Sachs Let Customers Skip March Loans, Credit Payments

Goldman Sachs has announced that customers of Marcus, its online bank, as well as Apple Card customers can have an additional month to make payments due to the coronavirus outbreak and the potential disruption to income, according to Reuters.

The late payments will not accrue a penalty fine or be charged interest, the financial institution said. Marcus customers who defer will have their loan terms extended one month, and Apple Card customers who can’t pay on March 31 can sign up for an assistance program to skip the payment.

Citigroup initiated a similar response last week and began offering hardship assistance to customers.

Automakers have also been reacting to the crisis, and many said that customers who buy new vehicles will be able to defer payments, and existing loan customers can ask to reschedule payments, according to the New York Post.

The move is meant to help sell vehicles as millions across the country decide to stay home and try to stem the outbreak’s growth. About 4,100 people in the country have been infected as of Monday (March 16).

Ford said its credit unit is going to allow for up to 90 days for deferments on new vehicle payments. Nissan said it would offer a similar deal.

Hyundai said payments on select new vehicles could be deferred for 90 days, and it would give six months of payment relief to customers who lost a job. General Motors (GM) and Toyota also offered help.

“We are working with customers on a case-by-case basis regarding payment deferrals and waiving late fees,” a GM spokesman said.

Many analysts have reduced sales forecasts this year for automobiles.

Adam Jonas, a Morgan Stanley analyst, said he is anticipating a “demand shock” that will see sales drop 9 percent this year. Before the outbreak, he predicted a drop of 1 percent to 2 percent.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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