Facing the ignominy of huge dealer inventory and falling behind Toyota for 2nd place in July sales, Ford has decided to let anybody with a pulse finance one of its cars. Well, you do have to have some credit, but Ford is lowering the bar in this new incentive drive to include buyers with sub-prime credit ratings. By allowing customers the option of 0% financing for up to 72 months on every Ford, Lincoln, and Mercury (except the Ford GT and certain F-Series pickups), Ford hopes to jump start a stagnant summer and reclaim 2nd place. Incentives have already started and will continue through Labor Day.[Source: Automotive News - sub required]
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Reader Comments (Page 1 of 2)
Brandon @ Aug 23rd 2006 2:32PM
This is not good, and shows that they did not learn the lesson of Mitsu. And I can say that as a person with crappy credit.
What sunk Mitsu in the US was moving inventory by giving long-term loans to a significant number of people with bad credit who then defaulted.
Not a good risk for FoMoCo and one that is going to hurt their financial arm.
Richard Warren @ Aug 23rd 2006 2:41PM
This is a good tool for attracting/getting 1st time buyers with no credit, who may very well be credit worthy
For those folks with credit problems, lets say a BK this can also be good depending on where they are as there is no more debt to be carried and want a new fresh start. Will it be abused? Yes, that's the risk you take but even if you end up with a 20% no pay or very poor pay overall you still make some money on the other 80% and move product.
Bill @ Aug 23rd 2006 2:42PM
Oh G*d,
#1 hits the nail on the head.
Bad, bad, bad idea. It also tarnishes the brand, and kills resale even further when you have a flood of cars on the used market in a couple years.
_O ^ O_ @ Aug 23rd 2006 2:51PM
It seems like its all about short term gains and fixes for Ford. This still doesnt address the issue of building cars (and now trucks) that people want to buy... except for the Mustang.
All World Automotive @ Aug 23rd 2006 2:52PM
At least the repo companys will be busy, so Ford stimulated one part of the economy
Don T. @ Aug 23rd 2006 2:56PM
Totally the wrong move. This will surely put Ford in the toilet. I can't believe they have resorted to this. They may never be able to recover from this stupid move. This is exactly what's wrong with....did you say zero percent for 72 months?? Gotta run, my Ford dealer closes at 5.
Neal M @ Aug 23rd 2006 3:01PM
I can see 0% for 36 or 48 or 60...but 72??? And for people with bad credit.
Raise your hand if you'd like to buy a $10,000 Ford Focus with crank windows and no air and drive it while paying the payments for the full six years...
People with bad credit are likely to be buying cheaper cars...and not trucks.
If only they could bring out TripTunes Advanced a little faster...I'd take 0% on a Fusion SEL I4 right now if it were here..
Karl @ Aug 23rd 2006 3:03PM
This is such a bad idea in so many ways.
The worst part about it? It REEKS of desperation.
If you want a new car and have crappy credit, you're better off getting a part time job for a year or two. Assuming that you fixed your credit issues, but they're still on your report.
And if you're desperate because whatever you're driving has more parts falling off it than a British roadster, you might want to take a look at http://articles.mechlogs.com/4/103
And http://articles.mechlogs.com/1/6/ for some advice.
Kevin @ Aug 23rd 2006 3:27PM
Easy people. So what, Ford is offering this until Labor Day weekend? That's what? 10 days from now? 10 days of 0% financing isn't going to ruin Ford.
alex @ Aug 23rd 2006 3:56PM
Ya man Ford is just give the lower income people a chance to get a nice vehicle and fix there credit. So shill it is just 10 days and not a long offer. What they are really doing is probably tryting to get rid of the 06 for the 07.
Tri-Bob @ Aug 23rd 2006 3:56PM
The other thing, you may have to pony up a large down payment. If you ever pay attention, lenders will give you a larger loan than you can afford, because they calculate their losses as well based on (1) initial money received, (2) number of payments they expect you to make before default (3) value of the property at default (say 12 months depreciation), (4) reacquisition costs and (5) resale costs. Those things combined, they can still make money off dead beats who pay several thousand (cash now), make a few payments, repo and resell. Plus, Ford gets to post higher sales figures next quarter, which raises stock value, I'd say this is a good thing for Ford.
oldsmoboi @ Aug 23rd 2006 3:58PM
it's a shame there still isn't a Ford/Lincoln/Mercury that I'd be interested in purchasing.....
ocnj179 @ Aug 23rd 2006 4:12PM
Feel the same way as you oldsmoboi. If only the euro Focus ST was in the lineup..
_O ^ O_ @ Aug 23rd 2006 4:14PM
@10
Ford calculates sales as soon as they leave the factory and get on dealers lots. So, their 'sales' numbers should be the same unless the dealer's are stupid enough to order more Fords then they can sell.
Ryan @ Aug 23rd 2006 4:18PM
"3. Oh G*d,
#1 hits the nail on the head.
Bad, bad, bad idea. It also tarnishes the brand, and kills resale even further when you have a flood of cars on the used market in a couple years.
Posted at 2:42PM on Aug 23rd 2006 by Bill 0 stars"
-***Edited for inappropriate language***
#1 did hit the nail on the head. Mitsubishi's cars did sell well, did you know the 3rd gen Eclipse was the best selling Eclipse of all time. (Even though the real Eclipse did not car for that car)
V-6's are worthless. Either a 4cyl or 8cyl. But V-6 engines are a worthless waste of crappy time.
Michael Karesh @ Aug 23rd 2006 4:32PM
I agree with those who think this will come back and bite Ford in a bad way.
My site can be used to compute savings from the low rate. Price the same car against itself, then on the results page specify 0% for one of them.
The savings can be large on a 72 month loan, especially for people without good credit.
http://www.truedelta.com/prices.php
Corey W. @ Aug 23rd 2006 5:13PM
I have excellent credit and the term 0% for 72 months sounds good to me. I wish I was like some of you who if told, "Hey if you stand up, I'll give you a butt load of money" but respond "no... that's ok, I'll stay seated, I have way more than enough money"
Gotta love that little green lizard!!
GOKARTN @ Aug 23rd 2006 5:17PM
Actually, Ford could be making a lot off this scheme. Man people with bad credit buy high end cars with big rebates to cover up the negative equity on the car they trade in. There are many folks who buy Expeditions and Lincolns who should be buying Escapes and Fusions because of that.
Doug @ Aug 23rd 2006 5:21PM
Guys, Ford is trying to sell their trucks to businesses. They make their profits on trucks. When reading headlines, look at the larger picture before jumping to conclusions.
Dodge Challenger @ Aug 23rd 2006 5:28PM
I cant find this special on Fords site anywhere. I see 0% for 36 months on some vehicles, but not 72 months. Nor can I find the "exclusion" list that says its only valid on "some F-Series" trucks.