Ford Pulls Back 0% APR Deals On Mustang, Ranger

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - June 3, 2020

Ford has quietly pulled-back 0% APR deals on the 2020 Mustang and Ranger. According to a bulletin sent yesterday to dealers, the brand has taken away 0% financing for 72 months and replaced it with a 60-month offer. As a result, shoppers will likely encounter higher payments ahead of the 4th of July holiday.

In the case of a $40,000 Mustang GT, a 5-year loan at 0% comes out to an estimated monthly payment of $667 before taxes & fees. Up until yesterday, the same car could be purchased at $556 based on a 6-year interest-free loan. That's a difference of $111, doing away with one of the best APR deals on a car.

Fortunately, no other 2020 Ford models appear to suffer from a similar change in June. You can still get 0% APR for 72 months on most vehicles like the redesigned Ford Explorer and popular F-150. However, those looking to buy the brand's iconic pony car ahead of Independence Day could be disappointed.

Sadly, the cost of a 72-month loan has gone up considerably. For example, Ford's 6-year rate on the Ranger is now 4.9% APR. With a $35,000 truck, this translates to almost $5,500 in interest that consumers didn't have to pay previously. Those comparing different loan options could encounter some bizarre scenarios.

For example, a 72-month loan at 4.9% comes out to $562/month. However, opting for the 60-month deal at 0% costs $583. Although that's $21 higher than the 72-month option, the total cost is $5,468 lower. As a result, some may find the shorter loan a much better way to save money in this scenario.

Taking things further, a 72-month loan on the Ranger could cost more than an F-150. For example, the above scenario involves a payment of $562 for a $35,000 vehicle. However, since the F-150 is eligible for 0% APR, you could potentially upgrade to a $40,500 truck and arrive at almost the same payment.

Ford isn't the only brand scaling-back offers. Yesterday, we learned that GM took away 0% APR for 84 months. Hyundai has followed suit and actually limited 0% APR to 48 months with a few exceptions. Clearly, the landscape seems to be shifting for buyers as the country continues to struggle with the effects of COVID-19.

Current offers end July 6. Stay tuned for CarsDirect's special 4th of July deal coverage later this month.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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