Ford offers zero percent on four-year loans. That didn’t take long.
Even though it’s a brand-new model that won’t hit dealers for another few months, Ford is already offering aggressive financing deals on the 2021 Bronco Sport. As reported by CarsDirect.com, prospective owners of the little Ford SUV can take advantage of 0 percent financing for up to 48 months, as well as financing terms of up to 84 months from Ford Credit.
The interest rate on longer loans is pretty aggressive as well, with a 1.9-percent APR on 60-month financing and 2.9-percent APR for 72 months. Predictably, the 84-month plan demands the most in interest: 5.9 percent. There aren’t any professional financial advisors at Motor1.com, but we’d advise against a seven-year loan with that sort of interest – including a 10-percent down payment, that loan would cost about $33,700 for a stripped Bronco Sport that theoretically costs less than $29,000. The story's worse for a loaded version; even with a 10-percent down payment, the total loan cost would be nearly $48,000.
However, the zero-percent interest offered on those shorter loans is basically free money, particularly for financially savvy folks who use the savings to invest in other areas. As of yet, Ford Credit hasn’t extended aggressive discounts to Bronco Sport lease deals, which currently feature a rate equivalent of 4.6 percent. We expect that to change before the 2021 Bronco Sport goes on sale by the end of the year.
So what gives? Why is Ford being so aggressive with a vehicle that isn’t even taking up space on dealer lots yet? Part of it could be that the company’s financing arm can afford to lose a little interest if it means ensuring there’s a butt in every Bronco Sport driver seat as soon as it hits the showroom floor. It could also reflect a wider marketing strategy that converts would-be crossover shoppers to the Bronco sub-brand’s “Built Wild” ethos.
Gallery: 2021 Ford Bronco Sport
Loyalty like that could pay off – the Bronco family should be a cash cow for Ford, thanks to higher margins on the Bronco Sport relative to the mechanically similar (and cheaper) Escape crossover. And the more expensive Bronco two-/four-door SUV should be even more profitable thanks to its Ranger- and F-150–intensive construction and powertrain offerings.