Posted on 10/15/2021 10:46:01 AM PDT by RomanSoldier19
Ex-President Bill Clinton recovering in hospital from infection FDA advisers endorse Moderna booster shot: Three takeaways
For most of us, buying a car involves getting a loan, whether from a bank, a credit union or an auto manufacturer's captive finance company. Whether or not we're approved for that loan is determined by our credit score -- except, in one case. According to a report published by CarsDirect on Friday, Ford has removed the minimum credit score requirement for its 84-month car loans .
This can be considered problematic for a few reasons. Typically, a minimum FICO score is taken as an indicator, along with other factors like debt-to-income ratio (more on this later), to determine a buyer's ability to repay the loan. Removing that score makes it easier to buy a new car, but it also has the potential to let people get themselves into loans with higher interest rates, which ties that customer to a lengthy repayment plan for an asset that's very likely to depreciate faster than they're paying it down.
(Excerpt) Read more at msn.com ...
They ought to call them MORTGAGES...........................
Go Ford!
Prolly be seeing a lot a repossessions on the horizon but sales are down so time to open the flood gates.
lol 84 months at 5.9%? Might as well call ‘em credit cards!
Is Ford arranging the call between BJ AND PLUGS?
First question: do they have cars to sell? Chips for those cars?
Second question: Does Ford remember how “Mel Farr, Super Star” handled this situation with low-credit-rating buyers?
His dealership installed devices on the ignition that would disable starting up the car if payments weren’t made.
Simple, ingenious, and more than fair. It gave those with poor credit a chance to have a car to get to work - all they had to do was keep their job so they could make car payments.
The sucker with bad credit who bought the new vehicle will continue to have bad credit.
Note to self, buy a 2 year old used car when the defaults flood the market with cars.
A 7 year car loan?! We’re going to be seeing a lot more upscale trucks zippin around with low scale drivers.
Yeah, well, didn't they do this already to MORTGAGES in 2008? How'd that turn out?
Gotta put them vehicles somewhere.
Thanks, I stick with my 3-year lease. I leased my first car in September 2019, having turned in my 2005 Nissan Altima. I’ve always owned Nissans, so I leased a Nissan Sentra to stay within the payment range I wanted. With 12,000 a year mileage, maintenance plan, and ding coverage, my payment is $314 a month. After two years, the odometer just turned 10,000. I will definitely be leasing a new car from them next September.
Next one get a 7500 mi year lease for cheaper payt. you’re just making the dealer money by not using your miles.
Can’t sell what you don’t have on the lot
For a car with a 5 year life expectancy
What could go wrong?
So Ford is banking on the microchip supply chain being clogged up for most of the next seven years? The only way this makes sense is if the repossessed car is similar or greater in value to the amount owed.
I can see this racket from a mile away.
But this has been going on for a long time. It is amazing. People who can't afford a loaf of bread are able to get their hands on really nice cars. And hang on to them. It has amazed me for years. SMH
“For a car with a 5 year life expectancy”
Drove my 2000 Mustang for eight hard years. Still running fine when I sold it.
Drove my 2008 Mustang for eight years. Still running like new in 2016.
It’s hard to imagine that ‘journalists’ could get things wrong, but this is wrong. I have managed a new car dealership since 1991 and currently run a Ford store. The minimum score has been lowered, has maximum amt to finance as related to cost and has to be a tier 0-2 out of 5 tiers.
It’s not even close to being eliminated. In reality, it will take about a 660-680 score with some minimal inequity to get an approval.
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