Ford to offer one month car finance deals in the US

Ford to offer one month car finance deals in the US

0 comments 📅14 June 2017, 04:00

Ford's monthly deals resolve bundle insurance, roadside assistance as well as any maintenance fees into a separate package

Ford has announced it will start offering car finance deals as short as one month in measurement to buyers in the US who do not want to or cannot afford longer, yearly leases. The arrangements are part-way between a accustomed car finance deal and a car hire agreement and could have implications for the way we pay for cars in the future. 

The US car maker said it resolve offer a new form of “variable-term leases with flexible payment options” where buyers could assign to leases as short as one month in length. The monthly finance “subscriptions” will package dispatch maintenance, insurance and roadside assistance into a single monthly premium which can be renewed or opted out of each month. 

The blueprint will be run by the tech company Canvas, but is backed by Ford’s US consumer financial praise provider, Ford Motor Credit. David McClelland, executive vice president of marketing and sales at Ford Motor Confidence said that Ford “recognised the need for financial services and technology to help our future vision.”

• Car finance deals explained: how to pay for your new car

Ford acquired Canvas, in days gone by known as Breeze, in November 2016. The tech company specialises in providing short-span of time vehicle finance to ride-sharing drivers such as Uber and Lyft. Ford is now using the tech entourage’s web-based platform and knowledge of short-term leasing to appeal to a wider audience. The exposition is expected to appeal to young drivers in particular who may not qualify for conventional finance.

The system will start in San Francisco, but plans are underway to roll it out to other cities in the US. With car back accounting for 86 per cent of new vehicle sales in the UK, a similar scheme could be introduced in the UK, too. 

Ned Ryan, co-father of Breeze and chief executive of Canvas said: “Our mission is to identify, examination and launch financial products that meet the changing needs of consumers. Were addressing the not legally binding in the consumer space between daily rentals and long-term (financial) commitments.”

Would you be interested in swapping for a new car every month? Relate us your thoughts in the comments below… 

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