Ford Financing: What To Know Before You Buy
Ford — they’re as American as apple pie. It’s no wonder you’re thinking about joining the ranks of proud Ford owners. For many, the first step is getting a car loan. Well, that’s after picking out your favorite model.
If you aren’t sure where to find the best Ford Credit financing, you’re in the right place. And if you have visited a dealership but aren’t sure if your current loan offer is competitive, we can help with that, too.
How do your Ford payments compare to the average?
Getting a loan offer is just part of the equation. You also need to make sure that the offer you accept is competitive. To help, we conducted a study using data from Experian, Kelley Blue Book (KBB) and other sources. With our research, we estimated average monthly payments for borrowers and compiled them by credit band.
First, get your free credit score. Then, find the credit band and model that most closely aligns with your situation. There, you can compare your quoted monthly payment to borrowers with a similar credit score.
Generally, the lower your credit score, the higher your monthly payment. But if that’s the case, why do some of our hypothetical high-credit borrowers pay more per month than low-credit borrowers?
Experian data shows that borrowers with the highest credit typically choose shorter loan terms. While a shorter loan term can help you save on overall interest, it can also result in a higher monthly payment. That’s because you have fewer months to spread your loan balance across.
Learn more about how we calculated average monthly Ford payments.
Estimated average monthly payments for new Fords
| Model | Starting MSRP | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2024 Ford F-150 | $36,570 | $567.04 | $556.52 | $515.66 | $552.23 |
| 2024 Ford Escape | $28,000 | $403.21 | $375.51 | $366.68 | $395.68 |
| 2024 Ford Ranger | $32,565 | $490.48 | $456.78 | $446.04 | $477.67 |
| 2024 Ford Mustang | $30,920 | $459.03 | $427.50 | $417.44 | $447.04 |
| 2024 Ford Explorer | $36,760 | $570.67 | $531.47 | $518.96 | $555.76 |
Estimated average monthly payments for used Fords
| Model | Fair purchase price | Monthly payment (501-600 credit score) | Monthly payment (601-660 credit score) | Monthly payment (661-780 credit score) | Monthly payment (781-850 credit score) |
|---|---|---|---|---|---|
| 2018 Ford F-150 | $16,097 | $289.95 | $250.89 | $225.11 | $224.55 |
| 2018 Ford Escape | $9,804 | $137.72 | $119.16 | $106.92 | $106.66 |
| 2018 Ford Focus | $7,565 | $83.55 | $72.30 | $64.87 | $64.71 |
| 2018 Ford Mustang | $17,929 | $334.27 | $289.23 | $259.52 | $258.87 |
| 2018 Ford Explorer | $15,967 | $286.80 | $248.16 | $222.67 | $222.12 |
Ford finance options
If you aren’t happy with your current auto loan offer compared to our hypothetical borrowers, you may have other options. Everyone has a personalized credit profile, so there’s no one type of financing that’s best for all. With a little research, you could find the loan with the lowest rates.
Ford Motor Credit
Best if...
You’re buying a Ford that’s currently on promotion or looking to purchase a certified pre-owned vehicle.
Most major car manufacturers offer their own car loans through certified dealers. This is called captive, or manufacturer, financing. Ford’s financing arm is Ford Motor Credit.
Captive financing typically comes with unique perks not found with other lenders, namely special offers and promotional sales events. Throughout the year, manufacturers run these to make room for new stock. Ford’s special offers could be anything from a discounted annual percentage rate (APR), rebate or reduced monthly lease payment.
Special offers and Ford financing deals are specific to ZIP code, dealer, model and model year.
Outside of special offers, you could take advantage of Ford’s:
Certified pre-owned vehicles
Ford’s certified pre-owned vehicles (called Blue Advantage) undergo an extensive inspection. Once certified, these vehicles come with a limited warranty, money-back guarantee, 24/7 roadside assistance and more.
Recognition programs
Military personnel, first responders, new and upcoming college grads and Farm Bureau members can get cash rewards. Unlike some manufacturers, trade school graduates are also eligible. Rewards apply to qualifying Ford purchases and leases and in some instances, Lincolns.
Flex Buy program
Ford Motor Credit’s Standard financing program comes with 12– to 84-month terms. Its Flex Buy program, on the other hand, has two term options: 66 or 75 months.
With Flex Buy, Ford will discount your monthly payments by 15% or 18% for the first 36 months. Your payments thereafter will be higher to ensure you pay your loan off on time. This payment structure is only offered by Ford Motor Credit and may be a good choice if you anticipate a future income bump.
Flex Buy is not available in Maine, Michigan, New Hampshire, North Carolina, Ohio, Pennsylvania, Virginia or Washington, D.C.
Ford Accessibility Program
This program helps people with disabilities regain their independence behind the wheel. It staffs driver assessment centers with professionals that can help determine what vehicle modifications will be most helpful for you.
You can also get up to $1,000 reimbursed for medically necessary modifications and adaptive equipment. Further, Ford offers extended loan terms to help drivers better afford their monthly payments after vehicle modification.
Complimentary new car limited warranties
New Fords have a three-year, 36,000-mile limited warranty. They also come with a five-year, 60,000-mile powertrain warranty. Corrosion may be covered for up to five years. Seatbelts and airbags get a six-year, 60,000-mile warranty.
Even if you have fair credit, Ford financing may be possible. It might approve you with a score as low as 620 to 650, albeit at a higher interest rate.
You can prequalify with Ford Motor Credit online. Although prequalification doesn’t guarantee approval, it will let you know where you stand. Additionally, it has no impact on your credit. Once prequalified, you can formally apply online or at a certified Ford dealership.
Bank and credit union auto loans
Best if...
Your bank offers an APR discount or if you’re a member of a credit union that offers a car-buying service.
Your current financial institution could be an excellent place to get an auto loan. If you have rocky credit, it may still approve you if you’ve had no bounced payments and a long, positive history. However, few banks and credit unions disclose their minimum credit score requirements.
Some banks also offer discounts for both banking and borrowing. For instance, you could get a 0.25% APR discount for setting up automatic payments through your PNC checking account for your PNC Bank auto loan.
Better yet, credit union auto loans tend to carry lower APRs than banks and usually have buyer benefits, too. Many credit unions — including Alliant Credit Union, Navy Federal Credit Union and PenFed — also have car-buying services. Not only could you secure a lower manufacturer’s suggested retail price (MSRP) by using the car-buying service, but you might also get an APR discount.
Online auto loans
Best if...
You’re comparing multiple offers, regardless of your credit score.
How can you know you’re getting the lowest APR if you accept the first loan that lands in your lap? Spoiler alert: you can’t. That’s why it’s so important to prequalify for a handful of loan offers and compare. Sticking to online loans makes this easier since you can apply without leaving your house, anytime of the day or night.
Online auto lenders also cater to all sorts of borrowers. Capital One, for instance, can provide loans to borrowers across the credit spectrum. Some even specialize in bad credit (such as DriveTime).
You don’t have to be tech-savvy to get an auto loan online, especially if you use LendingTree’s marketplace. With just a few clicks, compare offers from up to five lenders with no negative impact to your credit. See what you could be eligible for today.
In-house financing
Best if...
You don’t qualify for other types of financing and don’t have time to save up or improve your credit.
If you go the in-house financing route, your dealer will provide your car loan rather than a lender or financial institution. Also called “buy here, pay here,” in-house financing can be convenient, but at a high cost.
The biggest draw to in-house financing is its loose borrower requirements. Many buy here, pay here lots will lend to you even if you have bad or no credit. However, these loans typically carry exorbitant APRs — sometimes as high as 300%.
Further, many dealers that offer in-house financing sell older vehicles. An older model coupled with unfavorable loan terms is an easy way to find yourself with an upside-down car loan.
In-house financing can be helpful if you’re out of options. Still, if you can, wait to buy your Ford until you’ve improved your credit score or have saved up enough to pay for it in cash.
How we calculated average monthly Ford payments
To calculate average monthly Ford payments, we found estimated starting MSRPs and fair purchase prices for some of Ford’s most popular models.
Then, we subtracted an average down payment from each. According to Edmunds, the average down payment on a new vehicle was $6,907 in Q3 2023. For used vehicles, it was $4,111. The resulting figure represents the total amount our hypothetical borrowers financed.
From there, we used our auto loan calculator to figure out average monthly Ford payments, using average APRs and loan terms as reported by Experian’s State of the Automotive Finance Market Q3 2023. You’ll find this data in the tables below. Please note that loan terms were rounded to the nearest whole number during our calculations.
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 12.28% | 9.60% | 7.01% | 5.64% |
| Average loan term | 73.54 months | 74.00 months | 69.94 months | 61.90 months |
| Subprime (501-600) | Near prime (601-660) | Prime (661-780) | Superprime (781-850) | |
|---|---|---|---|---|
| Average APR | 18.89% | 14.12% | 9.73% | 7.66% |
| Average loan term | 66.25 months | 68.43 months | 68.40 months | 64.77 months |
Frequently asked questions
Sometimes, but it depends on Ford’s current special offers, where you live and what dealership you visit. If you’re in the market for a truck, look for Ford financing deals during Ford Truck Month (February through March). Many manufacturers (Ford included) also run end-of-year sales events to make room for new inventory.
Generally, you’ll need at least fair credit to get financed through Ford. If you have bad credit, consider adding a cosigner to your auto loan or putting down a large down payment.
That depends. Ford financing deals can be hard to pass up, especially if you’re eyeing a model that’s on promotion.
However, some people prefer to keep as much business as they can under one roof. For these borrowers, a bank loan may be better. Credit unions can also offer competitive APRs, even more so than some banks.