Ford offers zero percent financing for four-years. It didn’t take too long.
Although the new model won’t be available to dealers for a while, Ford already offers aggressive financing deals on its 2021 Bronco Sport. CarsDirect.com reported that potential owners of the Ford SUV can get 0% financing for up 48 months and financing terms up to 84 month from Ford Credit.
Longer loans have a very aggressive interest rate. There is a 1.9 percent APR on 60-month financing, and 2.9 percent APR for 72-month financing. The 84-month plan is the most expensive in terms of interest, at 5.9 percent. Motor1.com doesn’t have any financial advisors, but we would advise against a 7-year loan with this type of interest. This loan, which includes a 10% down payment, would be about $33,700 for a Bronco Sport stripped to its core, which theoretically is less than $29,000. For a loaded Bronco Sport, even with a 10% down payment, the loan would cost nearly $48,000.
The zero-percent interest on shorter loans is almost free money for those who are financially savvy and use their savings to invest in other areas. Ford Credit has not yet extended aggressive discounts for Bronco Sport lease agreements, which currently have a rate equivalent to 4.6 percent. This is expected to change by the time the 2021 Bronco Sport goes into production at the end of this year.
What’s the deal? What is the reason Ford is so aggressive in selling a vehicle that doesn’t take up any space on dealer lots? It could be because Ford’s financing arm is able to afford to lose some interest if they can ensure that every Bronco Sport driver sits in the showroom. It could also be a reflection of a larger marketing strategy to convert potential crossover buyers to the Bronco subbrand’s “Built Wild” ethos.
Loyalty such as that can pay off – Ford’s Bronco family could be a cash cow due to higher margins on its Bronco Sport than the mechanically identical (and less expensive) Escape crossover. The more costly Bronco two/four-door SUV with four doors should be more profitable due to its Ranger and F-150-intensive constructions and powertrain options.