Ford Motor Co. and Ford Motor Credit Co. brought back 0% finance offers this month and dropped the “Friends & Neighbors” discount program in response to dealer feedback, customer demand, and competitive pressure, said Mark LaNeve, Ford vice president of U.S. marketing, sales, and service.
“The availability of low-interest financing is just a major component of the way customers are shopping now, and it’s been a major component of our play,” LaNeve said in a conference call last week.
Ford previously offered 0% deals in August and part of September. “In December, we’re better off having that [0%] as a major part of our incentive mix, which we didn’t have in November,” he said. “It’s not a lot more complicated than that, really.”
The “Friends & Neighbors” program, which offered a discount off suggested retail, was supposed to run through December, but LaNeve said Ford concluded customers are more motivated by 0% offers, especially for small cars and small sport-utilities.
LaNeve said the level of incentives doesn’t change much from the old program to the new one. “Low-interest finance by your captive — in our case Ford Credit is a great partner — is an important component, so we want to make sure that’s included in the very critical month of December.”
