Ford 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.
Updated August 9, 2011 and originally published August 24, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.