In recent years – with the prices of used and new vehicles rising dramatically – Ford has focused on expanding its financing and leasing options for consumers, which has had a big impact on its business in a number of ways. That includes launching a special site specifically to explain EV tax credits, along with giving customers affected by natural disasters and financial problems more flexible options, which has helped Ford Credit rank near and at the top of J.D. Power’s U.S. Dealer Financing Satisfaction Study over the past couple of years. Now, another Ford financing option is winning over dealers and customers, too.
According to Automotive News, the Ford Flex Buy option – which gives customers who take advantage of the ability to make lower monthly payments in the first three years of a five- or six-year loan – has reached record highs in terms of usage as of late. Flex Buy actually debuted back in 2002, but has steadily grown in popularity as of late amid soaring prices and high interest rates, which have teamed up to negatively impact vehicle affordability in a big way. The program offers customers longer term loans with the same interest rate, but also, the ability to pay smaller amounts up front in exchange for larger payments on the back end.
Ford won’t reveal just how many customers are using the Flex Buy option these days, but Miguel Brookes, U.S. vice president for marketing and brand at Ford Credit, noted that the program hit a new record in 2023, and added that it continues to grow in terms of popularity as it’s now available in 44 U.S. states. “Affordability has become of primary interest to our customers,” he said. A Ford Credit spokesperson added that through this month, the automaker has already surpassed its mark in 2023, too, increasing by 25 percent over the first three quarters of the year.
In addition to being popular with consumers, Ford dealers are also seeing major benefits from the Flex Buy program, too. “One of the main reasons we started using it was obviously for the affordability play,” said John Hennessey, owner of Hennessey’s River View Ford in Illinois, noting that 70 percent of his customers take advantage of Flex Buy. “The program was so well accepted and it made so much sense that it became part of our everyday routine.”
Comments
Of course Ford would love pulling the wool over people’s eyes.
Lower payments up front gets people to sign for a vehicle they really can’t afford. You are perpetually upside down on the loan for the whole first half of the loan , up until their standard warranty expires in 36 months, then you have to pay more per month for a vehicle that’s out of warranty and you can’t afford to sell.
These predatory pricing practices are downright evil.
Wow……….and a sucker is born. So much for ever paying a vehicle off or even not being upside down in a vehicle.