As it shifts toward more of a build-to-order model, Ford has been scaling back incentives and will soon offer fewer configurations on dealer lots. That means finding deals on new vehicles (as well as finding new vehicles, period) is proving more difficult than ever before. Now, according to a dealer bulletin seen by Cars Direct, a 2022 Ford F-150 custom order financing deal is being scaled back to boot, diminishing the benefit of ordering a new pickup versus buying one off the lot.
The special 2022 Ford F-150 financing deal previously offered a 0 percent interest rate for qualified customers custom ordering a new pickup for 60 months, or 1.9 percent financing on 72-month loans – both of which served as alternatives to a $1,000 retail order bonus. Now, starting with factory orders placed in February, those rates have increased to 1.9 percent for 60-month loans and 3.9 percent for 72 months, while 0 percent financing is only available for 36-month terms.
Those interest rate hikes have a pretty big impact on the cost of a loan, essentially representing a $2,500 increase in the price of a $50,000 pickup over five years or $3,200 for the six-year loan. According to the bulletin, these rates will remain in effect through April 4th, 2022, though 2021 F-150 models left on dealer lots do qualify for a 0 percent APR over 60 months.
With the Federal Reserve set to hike interest rates in the coming months and the semiconductor chip shortage likely to rage on for at least several more months or even years, finding a deal on a new vehicle won’t get any easier moving forward, at least for the foreseeable future. Regardless, Ford says that its current strategy will serve its business well, speeding up inventory turns, reducing old inventory, lowering floorplan expenses for dealers, improving profitability, making forecasting a bit more predictable, and making it easier to manage inventory.