The Ford-150 pickup truck is available for sale at dealers on March 24, 2025 in Austin, Texas.
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Detroit – Ford Motor It is trying to promote sales of its important F-150 pickup trucks by the end of the three quarters.
The move includes offering consumers who offer Subprime credits (people with a FICO score below 620) with a lower interest rate that is normally offered to people with a quality score.
Such promotions are not unprecedented, they are efforts to make the vehicle more affordable for more buyers and lower stock levels. However, borrowers with low credit scores are more likely to default or miss payments, especially during recessions.
In addition to being a critical vehicle for the balance sheets of Detroit automakers such as Ford, sales are closely monitored as a sign of demand for skilled workers and small businesses.
A credit spokeswoman for Ford said the promotion rate does not represent a factor in the organization’s actual “credit decisions” towards consumers. She added that certain rates differ based on terms of the contract.
The Wall Street Journal, which first reported the program, said Ford will use its own scoring model to assess the creditworthiness of borrowers above the FICO credit score.
“We only provide funding to customers who believe they are trustworthy and have the ability to pay. We have performed these types of national programs in the past to expand our promotional rates to customers who meet our credit standards,” Ford Credit said in an emailed statement to CNBC.
According to Cox Automotive’s DealerTrack, as of the latest data starting in July, the average new car loan rate was around 9%. This included rates of approximately 18% to 20% for subprime or “deep” consumers.
Automakers such as Ford have historically tried to limit funding to subprime buyers through their own financial lending arms, which have grown significantly in recent years.
Ford’s credit report shows that only 3% to 4% of credit arm funds since 2024 are “high-risk” consumers. Ford Credit customers’ average FICO scores fell from 757 to 748, according to recent public submissions.
Sales of Ford F-Series trucks, including the F-150, increased 12.7% in the year that began September, but fell 3.4% in August compared to the previous year. Prices for the 2025 F-150 range from around $39,000 to over $100,000, depending on the model and option.
Cox says the affordability of the automotive industry has been a concern for many years as interest rates remain high and the average vehicle purchase price has risen to around $50,000.
Ford’s promotion comes as the Federal Reserve approved a quarter-point interest rate cut last week, indicating the possibility of two more interest rate cuts in 2025.
Ford is not the only automaker offering deals in pickup trucks. Stellantis“Ram Trucks Brand currently offers 0% funding to “qualified buyers” on some of the vehicles in its lineup, according to its website.
General Motors Chevrolet and GMC brands are offering just 0% qualified funding to qualified buyers by the end of this month, according to their site.
