Ford Wants More Buyers to Take 84-Month Loans
» Posted November 24, 2021 Resources | Share This Post
Shrinking supply has made it tough (and more expensive) for car shoppers to get their hands on new and used vehicles. At the same time, Ford Motor Co. is looking to make it easier for buyers to get certain types of loans.
The automaker recently ditched credit score requirements for seven-year loans, Jalopnik reports. The allure of money without a credit check could draw buyers into signing up for loans that they are simply not able to repay.
“In removing the minimum score requirement, Ford has opened the floodgates for more buyers to be put in precarious financial situations,” Jalopnik’s Lawrence Hodge writes. “Americans’ debt situations are already out of control, and this isn’t helping.”
Ford spokeswoman Margaret Mellott told Cars Direct that FICO scores are just one way of vetting car buyers for loans.
"Our proprietary scoring models do an excellent job of assessing the probability that an applicant will be able to pay, Mellott told Cars Direct. “FICO is one input. Eliminating the separate FICO requirement opens the prospect of financing to more customers who would qualify for 84-month financing within our models regardless of their FICO score."
While longer-term loans like the 84-month deal that Ford is offering allow borrowers to repay the loan at lower monthly rates, they also often come with interest rates that make the total cost of a vehicle significantly more than its sticker price.
Defective Car? Here is What You Need to Know
Meanwhile, Ford continues to struggle to ensure that the cars it puts on the road are actually safe to drive.
The company announced over the summer that it was recalling some 775,000 sport utility vehicles over a steering problem that Ford said could cause drivers to lose control of their cars and increase crashes. Federal investigators are also looking into whether the company improperly delayed a 2020 recall of some 620,000 vehicles with faulty rearview cameras.
Fortunately, Ford and other car owners in California do not have to wait for a recall to get their vehicles fixed.
The California lemon law requires car manufacturers to perform a wide range of repairs on vehicles while they are under warranty. It also forces carmakers to buy back or replace vehicles that the companies are unwilling or unable to properly fix.
How a California Lemon Law Attorney Can Help
If you have been stuck with a detective or malfunctioning vehicle, a California lemon law attorney at Bickel Sannipoli APC can help you take action to make the manufacturer accountable.
Our lawyers assist clients across the state in defective vehicle cases. We are tireless advocates who have dedicated our careers to ensuring that car manufacturers are held responsible when they do not live up to their responsibilities.
Our offices are conveniently located in Los Angeles, San Diego and San Francisco. Call us at (888) 800-1983 or contact us online to speak with a California lemon law attorney today.