Ford Revives Subprime Financing for F-150 as Truck Sales Show Mixed Results

Ford Motor Company is reintroducing subprime financing options for its flagship F-150 pickup, targeting buyers with credit scores below 620. The MOVE comes as F-150 sales exhibit volatility—rising 12.7% year-over-year in September 2024 but declining 3.4% month-over-month. With base prices starting at $39,000 and premium models exceeding $100,000, the initiative appears designed to clear inventory ahead of the new model year.

Investors reacted coolly, sending Ford shares marginally lower in Wednesday trading. The company defended the strategy, stating it only extends credit to borrowers deemed capable of repayment. Promotional financing for subprime buyers isn’t unprecedented in the auto industry, often deployed to address oversupply. Ford’s decision underscores broader pressures in the truck market, where soaring prices collide with fluctuating demand.