"Ford Will Not Be Tightening Financing Standards"
We’ve just received a copy an email sent by Ford’s Todd Lamb to dealers in his sales district. The missive from The Blue Oval Boy to FoMoCo’s Texas and Oklahoma dealers contains good news for beleaguered stores in the Lone Star and Sooner states. The automaker is reducing its wholesale floorplan rates by .5%. The move is in stark contrast to GMAC’s moves back in August, when the lender raised floorplan rates for GM stores by the same amount. At the same time, Ford’s decided NOT to raise their lending standards. “Unlike GMAC which announced that it will no longer finance customers with credit scores lower than 700, Ford Credit will maintain its’ [sic] consistent financing standards.” Will this offer Ford a competitive advantage? Probably not. But Lamb is nothing if not an optimist: “There’s plenty of reasons to be positive!” If you’ve got a second, we’d love a list, Todd. Full email after the jump.
Subject: Lower Floorplan Rates and No Change in Financing Standards
Good News for Ford and Lincoln Mercury Dealers!
1) Wholesale flooring rates will decrease .50% effective October 14.
2) Unlike GMAC which announced that it will no longer finance customers with
Repeat – Ford Credit will not be tightening its financing standards. This
3) Ford Credit is focused on driving your customers back to your dealership.
Let’s take advantage of these selling and financing tools today!
There’s plenty of reasons to be positive!
Share the good news with your customers!
Todd Lamb
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Hopefully for Ford's sake, this works better than Mitsubishi's disasterous problems with low-rent finance deals (for low-rent sheeple). You know, the customer base that GM has been "servicing" (for lack of a better word) and which they now cannot wrangle into 6 year loans with upside down trades.
I don't know what GMACs previous standards were like, but Ford Motor Credit seems to be fairly smart in how it lends money. A lot of Ford/Lincoln/Mercury customers are return buyers, and if their previous Ford loans were paid on time, they are almost always bought again, regardless of any other current credit issues. On the same level, someone who defaulted with Ford Credit in the past has a very difficult time getting another loan, even if their overall beacon score is high. We have also been seeing Ford Credit asking for more stipulations lately (i.e. proof of residency, proof of income, etc) which is fair, as those customers who can come up with it are getting bought, but those deadbeats who were trying to pull one over and who would have skipped on the loans are getting rejected. Ford isn't moving to a 'finance anyone with a pulse' system, they are simply doing what they have always done to earn customers and money, and doing a little bit more due diligence.