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Article: Ford Credit's goal: turn risky buyers into loyal customers. (Ford Motor Credit Co.)
- Article from:
- Automotive News
- Article date:
- February 5, 1996
- Author:
CopyrightCOPYRIGHT 1996 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Ford Motor Credit Co.'s bid for a piece of the $100 billion subprime automotive financing market is built on two 1990s trends: demand for used and off-lease vehicles, and personal economic instability.
Last week, Ford Credit said a new subsidiary would begin operating in the second half of 1996, offering retail vehicle financing to riskier credit customers - especially those hit by corporate layoffs and downsizing who formerly had good credit.
Ford Credit now buys A/B/C/D standard grades of paper although the company no longer uses those designations to rate customers.
An A-grade customer would be rated as almost certain to repay a loan, while each ...