Ford Extends Zero-Percent Financing Through Sept. 30

DETROIT -- Jocelyn Parker writing for Dow Jones reported that the Ford Motor Co. on Friday said it will continue its zero-percent financing program through Sept. 30. It also boosted its "customer cash" rebate and special financing for some models.

Spokeswoman Susan Krusel said financing rates for the Ford Mustang, four-door Explorer and the two-door Explorer Sport are 0% for contracts up to 60 months. Additionally, the "customer cash" rebate has been increased by $500 for the Ford Mustang, Windstar, Explorer Sport and Explorer SportTrac, Ms. Krusel said.

The program also added "customer cash" of $500 to $1,000 or financing rates of 3.9% to 5.9% for most 2003 models. The 2003 Thunderbird, Escape and Expedition are excluded, she said.

Ford's interest-free financing program was originally set to expire Sept. 3. All programs are effective Friday, Ms. Krusel said.

As part of Ford's program, "customer cash" rebates of up to $3,500 or 0% financing are available on most 2002 Ford brand models, Ms. Krusel said.

Despite analysts' concerns that 0% financing may begin to lose effectiveness in luring consumers, Ms. Krusel said Ford is continuing the program because the incentives have promoted higher sales.

"They (the incentives) are working and they are the right thing to do right how," Ms. Krusel said.

Burnham Securities analyst David Healy said Ford is likely extending the program to clear out its 2002 models. General Motors Corp.is likely seeing a better cleanout of its 2002 vehicles, but it will probably continue some form of 0% financing to remain competitive, he said.

More than a month ago, the auto makers launched interest-free financing programs as a way to spur vehicle demand after tepid May and June results.

July was Ford's best month this year as a result of rebates and 0% financing, with sales up 1.5%.

GM spokesman Jeff Roegner said the auto maker is still evaluating whether or not it will extend its 0% financing program beyond Sept. 3. GM probably won't make a decision until that time, he said.