"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
credit scores lower than 700, Ford Credit will maintain its’ consistent
Repeat – Ford Credit will not be tightening its financing standards. This
includes supporting both retail financing and leases of Ford products to
meet the needs of your customers.
3) Ford Credit is focused on driving your customers back to your dealership.
The Step ‘n Tier Up Program is driving customer loyalty by granting
eligible, approved returning Ford Credit customers the next better tier’s
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!
DSCT DAM – Texas and Oklahoma
Join the conversation
Latest Car ReviewsRead more
Latest Product ReviewsRead more
- Zerocred So many great drives:Dalton Hwy from Fairbanks to the Arctic Circle.Alaska Marine Highway from Bellingham WA to Skagway AK. it was a multi-day ferry ride so I didn’t actually drive it, but I did take my truck.Icefields Parkway from Jasper AB to Lake Louise AB, CA.I-70 and Hwy 50 from Denver to Sacramento.Hwy 395 on the east side of the Sierras.
- Aidian Holder I'm not interested in buying anything from a company that deliberately targets all their production in crappy union-busting states. Ford decided to build their EV manufaturing in Tennessee. The company built it there because of an anti-union legal environment. I won't buy another Ford because of that. I've owned four Fords to date -- three of them pickups. I'm shopping for a new one. It won't be a Ford Lightning. If you care about your fellow workers, you won't buy one either.
- Denis Jeep have other cars?!?
- Darren Mertz In 2000, after reading the glowing reviews from c/d in 1998, I decided that was the car for me (yep, it took me 2 years to make up my mind). I found a 1999 with 24k on the clock at a local Volvo dealership. I think the salesman was more impressed with it than I was. It was everything I had hoped for. Comfortable, stylish, roomy, refined, efficient, flexible, ... I can't think of more superlatives right now but there are likely more. I had that car until just last year at this time. A red light runner t-boned me and my partner who was in the passenger seat. The cops estimate the other driver hit us at about 50 mph - on a city street. My partner wasn't visibly injured (when the seat air bag went off it shoved him out of the way of the intruding car) but his hip was rather tweaked. My car, though, was gone. I cried like a baby when they towed it away. I ruminated for months trying to decide how to replace it. Luckily, we had my 1998 SAAB 9000 as a spare car to use. I decided early on that there would be no new car considered. I loathe touch screens. I'm also not a fan of climate control. Months went by. I decided to keep looking for another B5 Passat. As the author wrote, the B5.5 just looked 'over done'. October this past year I found my Cinderella slipper - an early 2001. Same silver color. Same black leather interior. Same 1.8T engine. Same 5 speed manual transmission. I was happier than a pig in sh!t. But a little sad also. I had replaced my baby. But life goes on. I drive it every day to work which takes me over some rather twisty freeway ramps. I love the light snarel as I charge up some steep hills on my way home. So, I'm a dyed-in-the-wool Passat guy.
- Paul Mezhir As awful as the styling was on these cars, they were beautifully assembled and extremely well finished for the day. The doors closed solidly, the ride was extremely quiet and the absence of squeaks and rattles was commendable. As for styling? Everything's beautiful in it's own way.....except for the VI coupe....it's proportions were just odd: the passenger compartment and wheelbase seemed to be way too short, especially compared to the VI sedan. Even the short-lived Town Coupe had much better proportions. None of the fox-body Lincolns could compare to the beautiful proportions of the Mark V.....it was the epitome of long, low, sleek and elegant. The proportions were just about perfect from every angle.
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.