Ford offers flexible financing options to its customers as a leading car brand. You can buy or lease a Ford vehicle with competitive interest rates and flexible loan terms.
Ford does not offer prequalification. Hence, you’ll know the exact credit score requirements when you apply online.
Let us discuss what financing options Ford offers and what are the qualification requirements.
Does Ford Offer 0% Financing?
Yes, Ford does offer 0% financing on its selective car models. It’s possible to find a 0% APR deal with Ford.
Ford usually offers competitive interest rates on its financing offers to start as low as 0.9%. However, it also offers 0% financing as a special offer on selective vehicles.
Although 0% financing is not available all the time, you can get it from Ford when it offers it as a special deal. You’ll need an excellent credit score to qualify for a 0% APR deal though.
If your credit history and credit scores are excellent, you may qualify for a lower APR loan at Ford anyway. The exact interest rate for your financing plan will be revealed in your contract terms.
Alternatively, you can find 0% financing from a third-party lender and get approved. Ford will accept your financing plan and you can buy a vehicle at 0% financing without ever applying with Ford directly.
What Financing Does Ford Offer?
Like other leading auto brands, Ford offers a few leasing and buying plans to its customers. Each plan comes with certain features and benefits for its customers.
This is your regular loan offer from Ford to buy a vehicle on fixed terms. This program is valid to purchase new, old, and certified pre-owned vehicles.
One of the benefits of choosing a standard purchase program is that you build equity with every payment you make towards the loan.
Here are a few key features of the standard purchase program from Ford:
- It comes with a loan term of 12- to 84 months which is a fairly extended loan term as compared to other brands.
- It offers competitive interest rates starting from 0.9%.
- As with any other loan program, there are no mileage limits for the borrowers.
- It comes with a fixed loan term, fixed interest rate, and hence fixed monthly installments for consistency.
- Borrowers have the choice of vehicle customization with this plan.
- You can build and reuse the vehicle equity as you want.
The borrower owns the vehicle at the end of the standard purchase program.
The flex buy program offers greater flexibility of lower monthly installments to borrowers. If you want to keep the monthly installments lower, this financing option from Ford is for you.
The flex buy program offers lower monthly installments for the first 36 months. Then, you can pay larger monthly installments for the rest of the loan term up to 75 months.
Here are a few key features of the Flex Buy Program:
- It comes with a loan term of 66 or 75 months.
- This program offers a special discount of 15% or 18% on monthly installments for the first 36 months.
- Borrowers can customize the vehicle.
- Borrowers can build equity with each payment as a standard loan feature.
- There are no mileage limits on this program too.
The Ford Options program is a balloon loan. It allows you to buy a vehicle from Ford at competitive interest rates and keep the monthly installments lower until you make one large payment at the end of the loan term.
The Ford Options program is only available for its electric vehicle models like Mustang Mach-E or F-150 currently. So, if you are looking to buy an EV from Ford, this program is a well-suited loan offer for you.
Here are some other key features of the Ford Options program:
- It comes with a loan term of 36- or 48 months with lower monthly installments and a large balloon payment at the end.
- Borrowers can build equity with each payment.
- Borrowers may qualify for tax credits for investing in an EV.
- You can negotiate mileage limit terms.
- At the end of the loan term, you can:
- Return the vehicle, renew the lease, or buy it by settling the final payment.
Red Carpet Lease
The red-carpet lease is a lease program by Ford for customers looking for car rentals only. If you are looking for limited access to a Ford car, the red-carpet lease program is more beneficial to you.
You can purchase the vehicle at the end of the lease term too. Your lease payments made during this period will be adjusted as the disposition fee. It means those payments will count towards the vehicle price if you choose to buy it by the end of the lease term.
Here are a few key features of this lease program:
- It comes with a mileage limit range of 7,500- 19,500 miles.
- It offers multiple terms and mileage limit options.
- You can renew the lease, return it, or purchase the vehicle at the end of the lease term.
Ford Car Financing Vs Leasing – Which One is Better?
If you want to drive a new Ford vehicle of your choice but also want to keep monthly installments lower, you should opt for the leasing program.
On the other hand, if you want to own a vehicle and build equity, Ford financing for the purchase option is the right fit for you.
The qualification process for both options is similar but the loan program will usually require a higher credit score as compared to the lease option.
The lease v buy option largely depends on your financial goals with driving a Ford vehicle. The lease option is usually cheaper but comes with limitations on the mileage and lease terms.
Similarly, if you want a specific vehicle like a Mustang Mach-E (electric vehicle), Ford offers a specific loan program. It will give you a better financing deal than a lease option.
How to Qualify for Ford Financing?
The exact credit score and other qualification requirements are not disclosed by Ford. You can expect credit approval with a credit score of 740 and above though.
A higher credit score may also help you get a better APR deal from Ford. Unfortunately, Ford does not offer prequalification for its customers either.
You can compare different deals and offers from Ford before applying. You have the choice of bringing a third-party lender as well.
The application process at Ford financing is fully online. Once approved, you can get the vehicle delivered to the nearest Ford dealer location.
You’ll need the following documents to apply for a Ford financing application:
- Personal information including name, DOB, contact number, social security number, or ITIN.
- Financial details including gross annual income, employer name, employer contact, etc.
- Residence details including address, rental or ownership proof, and the duration of the residence.
- You can check the status of your application online too by logging in to your Ford online portal.
Ford Financing Deals and Rebates
Ford offers several types of financing deals and rebates for its customers. These offers may include 0% financing deals as well.
Here are a few rebates and financing deals from Ford:
- Ford offers retail incentives as a lump sum discount on selective vehicles.
- You can get bonus cash or bonus credit point deal from Ford as well.
- Ford offers 0% financing deals on selective models occasionally too.
- It offers special discounts for military and first responders ($500) and students ($750).
- If you earn $2,000 per month and don’t have a car history, you can get a better financing deal from Ford even if you don’t have an excellent credit score.
Pros and Cons of Ford Financing
Ford financing and leasing options come with some pros and cons.
- Ford comes with several financing deals and rebate offers.
- It offers competitive interest rates including 0% APR deals.
- It offers extended loan terms of up to 84 months.
- Borrowers may qualify for a tax credit when buying an EV through its financing.
- Ford enjoys positive customer ratings overall.
- Ford does not offer prequalification and does not disclose the exact credit score requirements either.
- The financing deals are available only at Ford dealerships.
- You may get a higher APR with an average or poor credit score.
- 0% financing is not available permanently and comes with limited vehicle options.