Ford’s highly anticipated F-150 Lightning pickup is eligible for a financing deal. According to a newsletter sent to dealers, the all-electric pickup truck and the Ford Mustang Mach-E are offering an unusual financing program starting today. Our analysis reveals that there may be pros and cons with the first F-150 Lightning financing deal.
Starting May 6, Ford Credit is offering an “always-on rate” aimed at providing consumers with an upfront loan price. The captive lender says the program is designed “for a transparent and simple pricing experience.” What this really means is that dealers are prohibited from marking up prices for customers.
All versions of the Mustang Mach-E and F-150 Lightning now offer 4.9% APR for 72 months. The rate in question requires an upper level credit and applies to standard retail contracts and the Ford Option Plan. Rather than allowing its dealers to mark up the rate, the program pays dealers a fixed fee equal to 1% of the price of a vehicle.
While 4.9% APR for a 6-year loan isn’t bad in light of the Federal Reserve’s recent interest rate hike, it’s also not great. On a $45,000 truck, we estimate a 6-year loan at 4.9% would cost just over $7,000 in interest excluding taxes and fees. That said, 4.9% is the same rate you’ll find on the regular F-150.
Whether or not Ford’s first F-150 Lightning finance incentive is a good deal may depend on your situation. Alternatively, Ford offers a lease-like financing program called Ford Options involving balloon financing. Since Ford reserves a $7,500 tax credit on leases, this may present a better way to save.
Explore F-150 Lightning prices and offers