As featured in The Wall Street Journal, Money Magazine, and more!

Ford Needs Gimmicks to Sell Their Cars

by Flexo on August 24, 2006

in Uncategorized

Ford CarFord is now offering 0% financing to those with bad credit. In the past 0% has only been available to applicants with great credit histories, but between today and September 5, Ford wants to get more people inside the dealership doors.

Due to low demand for their vehicles, the company has yet another gimmick to increase sales. The company seems to be ignoring the big question, the 2000 pound gorilla in the room: Why doesn’t the manufacturer just make cars that enough people want to drive and buy? If Ford starts making great cars, and convinces the country to get over the stigma and realize that the cars are great, they won’t have to resort to gimmicks to sell their product.

The gimmick itself is not a good idea from a business standpoint. They’re entrusting customers with bad credit to live up to agreements normally only entrusted to customers with stellar credit. Many people wind up with bad credit reports through no fault of their own, but most lenders agree that the lower the credit score, the greater the risk of default. I’d like to see those with bad credit being helped, but this is a risky move.

VN:F [1.7.5_995]
Rating: 0.0/5 (0 votes cast)


About the Author

Flexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter.

If you enjoyed this article, get the free RSS feed or get daily emails.

Join the free Consumerism Commentary newsletter. Enter your email address here to receive weekly emails with behind-the-scenes information, exclusive giveaways, and money tips.



Related Entries on Consumerism Commentary

{ 3 comments… read them below or add one }

1 jim August 24, 2006 at 10:10 am

They need to put gimmicks in while they’re design teams try to figure out how to create a car people will buy. The lead time for a design to be built is something ridiculous so until then these are just stopgap measures.

UN:F [1.7.5_995]
Rating: 0.0/5 (0 votes cast)

Reply to this comment

2 Flexo August 24, 2006 at 10:28 am

Ford has been outclassed by other auto makers — at least in their car line-up — for two decades (in my opinion). The lead time required, at least after a design is agreed upon, shouldn’t be more than 5 years.

UA:F [1.7.5_995]
Rating: 0.0/5 (0 votes cast)

Reply to this comment

3 Michael August 24, 2006 at 2:51 pm

The missteps by the used-to-be Big Boys (F and GM) just keep on coming. It’s unbelievable.

Good thing my dealership is co-branded with Nissan.

UN:F [1.7.5_995]
Rating: 0.0/5 (0 votes cast)

Reply to this comment

Leave a Comment

Note: By submitting your comment you are agreeing to these terms and conditions. If you attempt to post spam, including promotional linking to a company website, your comment will be deleted.

Previous post: Links for Wednesday, August 23

Next post: Here is the Winner of The Big Money by Fred Kobrick