Ford Motor is offering special financing on its F-150 pickup trucks for consumers with subprime credit scores below 620 to boost sales before the end of the third quarter. The move aims to make vehicles more affordable and decrease inventory levels. Automakers closely watch pickup truck sales as a sign of demand for skilled labor and small businesses. Ford uses a proprietary scoring model to assess creditworthiness beyond FICO scores for borrowers. The average new auto loan rate was around 9%, with rates up to 18% to 20% for subprime consumers. Ford Credit reported that only 3% to 4% of its financing since 2024 has been to “higher risk” consumers. Sales of Ford F-Series trucks, including the F-150, were up 12.7% for the year but down 3.4% in August. Pricing for the 2025 F-150 ranges from $39,000 to over $100,000 depending on options. Affordability remains a concern as interest rates remain high and vehicle purchase prices increase. Ford’s promotion coincides with a quarter-point rate cut approved by the Federal Reserve, signaling the possibility of two more rate reductions this year. Other automakers like Stellantis and General Motors are also offering deals on their pickup truck brands.

Read more at CNBC: Ford offers special financing to F-150 buyers with lower credit scores