Ford-150 pickup trucks are displayed for sale at a dealership on March 24, 2025 in Austin, Texas.
Brandon Bell | Getty Images
DETROIT — Ford Motor is trying to boost sales of its crucial F-150 pickup truck before the end of the third quarter by offering special financing to consumers with less-than-perfect credit ratings.
The move includes offering consumers with subprime credit — those with a FICO score below 620 — lower interest rates that are typically offered to those with quality scores, the automaker’s Ford Credit financial arm confirmed Wednesday.
Such promotions aren’t unprecedented and are an effort to make vehicles more affordable for more buyers and decrease inventory levels. But borrowers with lower credit scores are considered more likely to default or miss payments, especially during an economic downturn.
In addition to pickup trucks being crucial vehicles for the balance sheets of Detroit automakers such as Ford, their sales are closely watched as a sign of demand for skilled labor and small businesses.
A Ford Credit spokeswoman said the promotional rates do not factor into the organization’s actual “credit decisions” for consumers. She added that the specific rate will vary based on the terms of the agreement.
The Wall Street Journal, which first reported the program, said Ford uses a proprietary scoring model to assess a borrower’s creditworthiness that goes beyond a FICO credit score.
“We only finance customers we believe are creditworthy and have the capacity to pay. We have done these types of national programs in the past, extending a promotional rate to customers who meet our credit criteria,” Ford Credit said in an emailed statement to CNBC.
The average new auto loan rate was about 9% as of the most recent data from July, according to Cox Automotive’s Dealertrack. That included rates of around 18% to 20% for subprime or “deep-subprime” consumers.
Automakers such as Ford have historically attempted to limit financing to subprime buyers through their own financial lending arms, which have significantly increased in importance in recent years.
Ford Credit reports only 3% to 4% of its credit arm’s financing since 2024 have been to “higher risk” consumers. The average FICO score for Ford Credit’s customers was 748 through the first half of the year, down from 757, according to a recent public filing.
Sales of Ford F-Series trucks, which include the F-150, were up 12.7% for the year entering September, however, were down 3.4% for the month in August, compared with a year earlier. Pricing for the 2025 F-150 ranges from around $39,000 to more than $100,000 depending on the model and options.
Affordability in the automotive industry has been a concern for many years, as interest rates have remained high and the average vehicle purchase price has increased to around $50,000, according to Cox.
Ford’s promotion comes as the Federal Reserve approved a quarter-point rate cut last week, with the central bank signaling the possibility for two more interest rate reductions in 2025.
Ford isn’t the only automaker offering deals on its pickup trucks. Stellantis‘ Ram Trucks brand is currently offering 0% financing for “well-qualified buyers” on select vehicles in its lineup, according to its website.
General Motors’ Chevrolet and GMC brands also are offering low-interest rate financing, as little as 0%, for well-qualified buyers through the end of this month when financed with its financial arm, according to their sites.
