CAR companies are taking the unprecedented step of giving free redundancy protection in a bid to attract buyers who are fearful of losing their jobs. Even those who currently have jobs are said to be delaying buying major commodities in case they lose their livelihoods and are forced into debt. This is believed to be the main reason for yet another month of disappointing car sales as potential buyers are fearful of taking the plunge. Now car companies are taking the unique step of enticing potential purchasers with the promise of payment protection. Renault, Volvo and Honda are the first to offer free payment protection insurance, which Volvo also extends to sickness and accident cover. Volvo UK managing director Peter Rask, says: ``One of the biggest barriers to a customer buying a new car in the economic downturn is the fear of redundancy "We appreciate that this is a difficult time for many people up and down the country. ``We also believe that there are many customers who still want to buy a car safe in the knowledge that should the worst happen and they are made redundant they can still keep their car." The Volvo offer is open to anyone buying a new C30, S40 or V50 on finance. Renault has taken the scheme a stage further by combining payment protection with free finance and no-deposit deals following a 50 per cent sales slump last month, which is twice that of Volvo. The payment protection applies to a range of cars and vans, with models such as the Clio three-door Dynamique also attracting free finance and no deposit with payments of £313 over 30 months. Renault managing director Roland Bouchara, says: 'Buying a new car is a sizeable financial commitment and at a time when there may be uncertainty we feel it is essential to encourage confidence.' Other Renaults to be offered with free finance and no deposit include the Grand Modus, Megane Hatch and the Scenic. To help reverse Honda's 40 per sales drop last month the company is including its Civic and CR-V models in the payment protection plan whilst slashing prices by up to £3,100. The payment protection means that the company will cover the monthly car repayments for up to a year, which kicks in after the first three months of redundancy. There are also free finance deals and low-rate PCPs plus reductions of £1,520 in the case of the Civic 1.8 SE, £2,295 off the Civic 2.2-litre diesel and £3,100 off the cost of the Civic Type R GT, which now costs £200 a month on free finance. Honda head of marketing Tom Gardner, says: ``We know that people still want to buy new cars but everyone is a bit nervous at the moment. Our package of cost savings, financial offers and the security of payment protection is one of the strongest we have ever offered.' | 
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