The term Ford Finance Lease is one needs a slight amount of unpicking in order to clarify two or three main areas of both the credit and leasing implications that come together when someone leases a vehicle through Ford. Ford, in common with most other manufacturers have their own credit arm, known as Ford credit and this is often referred to as dealership finance, or dealership financing.
It simply means that Ford act as a credit broker essentially, in terms of arranging finance for potential customers in order for them to buy or lease a vehicle.
Ford credit will act in the same way as any other credit broker or agency, or any lending institution in that they will assess an individual’s capability to repay a loan based on their credit score and credit history. This is true whether the individual is buying a new or a used vehicle from Ford, or leasing one.It should also be realised that there is no place to benefit in terms of Ford credit making a loan available simply on the basis that someone is buying a vehicle through their dealership as well.
Ford Finance Lease
All Ford credit applications will be based on the same merit as they would be if they were being made to any normal financial lending institution.
Leasing a vehicle from Ford has a number of advantages, both for the customer and also for Ford itself. From the customer’s point of view, it allows them to essentially owning a new car or truck at a significantly reduced price than they would do if they bought it outright.
Of course they do not actually own it in terms of winning the title to it, that is retained by Ford, it should be thought of as essentially a long-term rental with certain terms and conditions. It does however give the customer a sense of ownership, and the look and feel of being in possession of a new car. Other advantages include a manufacturer’s warranty and hopefully reduced servicing and maintenance costs.
From Ford’s point of view, leasing a vehicle brings another customer into the system. Whilst they don’t make the same money as they would from the sale of the vehicle, did you make a significant amount from having a new customer and from revenue that flows from them. This revenue can include short-term and long-term servicing and masons costs, as well as hopefully developing a long-term relationship with the customer which can bring significant revenue.