[phillyc]

Originally Posted by Polyal

Until all the new models come online I agree, Ford need to aggressively have a temporary finance deal like toyota...but just on local cars.

Here is the link to my post in another thread.

http://www.fordforums.com.au/showthr...18#post3607818

I just did a bit of a spreadsheet.

But assuming a 7.9% finance cost to Ford. Not sure if that would be realistic or whatever. But Ford does access to internal line of credit to Ford (was discussed that much had been repaid in 2009 FY).

2nd assumption is a 3.9% finance deal. The difference is an ongoing funding of 4% by FoA. If the terms were set as zero money down, full payment (no balloon) commercial hire purchase agreement over a 4 year period the figures look very good.

Essentially, the principal owing is reduced by 2.1% every month for 48mths. The cost to Ford drops from 0.33% the first month to 0.007% in the last month. The net cost to Ford is 8.17% of the principal. On a $36,990 XR6 the cost to Ford would be $3020. IMO Keeping them on the grass will cost 15%.

Cheap finance is much better than slashing prices and destroying resale. A cheap price builds an expectation that another bargain will come along but the cheap finance will be long remembered and appreciated. The person will be most likely in a position to repeat in 4 years time if they wish.

You only have to look at the seemingly successful Toyota Yaris and Corolla cheap finance was. They had it on targeted / specific trim levels and body styles. Most likely, the ones which hadn't been selling. Corolla had huge sales in Dec/Jan when the promo was on.

Ford should, if they can, do this cheap finance. Advert: "Falcon, it's not just the award winning better car, it's the smarter choice with 3.9% finance."