Ford’s recent decision is especially significant as the average new auto loan rate has now reached an all-time high of around 9%. As a point of reference, most subprime consumers have a FICO score under 620. For them, rates can jump to as high as 18% – 20%. Ford Credit, the company’s financial arm, just dropped a bombshell! Instead, they will begin providing interest rates that used to be provided only to consumers with top-tier credit scores.
The MSRP for the new 2025 models start at approximately $39,000 and go up over $100,000. At the same time, the average vehicle purchase price has skyrocketed to nearly $50,000. This dramatic increase in expense creates very real affordability issues for millions of would-be homeowners.
Ford’s already dead set on increasing F-150 truck sales through the roof. These sales are an important metric for a growing demand for skilled labor and small businesses. The F-150 remains one of the most popular vehicles in the United States and serves as a vital product for Ford’s overall business strategy.
Ford is providing special vehicle financing offers. This important initiative provides common sense protections to Americans with credit blemishes who are just trying to get the vehicles they need to succeed. We do not offer financing to every customer, only those we deem to be creditworthy and have the financial ability to repay. As Ford Credit explained, “We’ve executed other large national programs in the past. We would provide a promotional rate to customers who are credit-qualified.
The special financing offer comes amid increasing competition in the pickup truck market, where manufacturers are vying for consumer attention. Ford F-150 trucks are the most visible vehicles on lots at dealerships around the country. They appeal to a wider pool of buyers, especially small business owners who rely on their daily drivers for work – often pickup truck owners.
Ford’s program is intended to stimulate sales. It’s committed to creating long-term relationships with customers who have been denied opportunities in the past. Ford hopes to improve affordability by making lower interest rates available. This strategy helps tip more buyers into choosing an F-150 over a competitor’s vehicle.
With the third quarter fast-approaching Ford is clearly scrambling to get a foothold in the subprime market. This calculated strategy might transform its sales numbers and increase daily drivers’ call for one of its most legendary models. This strategy will only be a success if it increases sales. It has to do a better job of meeting the expansive needs for consumers across the whole credit spectrum.