• Aug 23, 2006
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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  • 30 Comments
      • 8 Years Ago
      Times have changed. When i made some money in my business I tried to finance a 2001 lightning thru ford and was told my credit was too poor? FICO 700. It was such a good deal, i just purchased it cash.

      TIMES have changed. This is scary scary for the economy. These big corporations simply do not have the ability to turn off their entire infrastructure
      • 8 Years Ago
      @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.
      • 8 Years Ago
      "Please keep your comments relevant to this blog entry: inappropriate or purely promotional comments may be removed."

      Never says *will* be removed only *may* be removed. In this case the *may* was a *will*.

      Either way I think 0% and "domestic" go hand in hand. I think that people kind of expect 0% from the domestic makes. I think GM started this in the wake of 9/11 to kick start the car buying. My friends 2002 Monte Carlo was financed at 0% but only up to 36mo. Now four years later it is not only 0% but now on 72mo terms, kind of going in the wrong direction.

      -Could you just imagine if Honda offered a 0% 72mo option right now to compete with Ford? I know that would never happen, but talk about sudden death.
      • 8 Years Ago
      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.
      • 8 Years Ago
      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.
      • 8 Years Ago
      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
      • 8 Years Ago
      it's a shame there still isn't a Ford/Lincoln/Mercury that I'd be interested in purchasing.....
      • 8 Years Ago
      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.
      • 8 Years Ago
      I took advantage of the 0% financing. I believe it is for people with a credit rating above 620... which I'm high 6's low 7's (depending on which of the 3 credit unions you use). So it's not for bad bad people, but people like me that fell on hard times and back on their feet while getting a bruised rating.

      I am now driving a beautiful Fusion SEL V6 with many many gadgets and zero miles!
      • 8 Years Ago
      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..
      • 8 Years Ago
      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.
      • 8 Years Ago
      I can assure you ford is not getting high down payments if they want to move cars in sub-prime category. These are people who often pay say 22% interest to a rat (sub-prime) bank because there is no or little money down. The high interest is to cover the huge risks of giving out cars to these people. However, the rat bank only finances "junkers". It is assumed the car will have no future value and sometimes the dealer participates in recourse (making the bank whole if there is a repo). There is more likely just a termination of the debt. The cars can rarely be found. and they won't run if found.
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