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How to finance a Ford

Compare different Ford financing options and find the best fit for you.

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Some of Canada’s best-selling vehicles are made by Ford, one of the largest car manufacturers in the world. Ford makes everything from classic pickups to energy-efficient electric vehicles, and, if you’re thinking about buying one, compare your financing options to get the best deal.

How to finance a Ford

If you want to get a Ford, you can buy the vehicle (own it) or lease the vehicle (rent it for a period of time). You can finance a new or used Ford through the manufacturer or a third-party lender such as a bank, credit union or online lender. Getting financing through the manufacturer is usually the fastest and easiest way, but you may qualify for better rates through an outside lender if you put in the time to compare options. Below is a breakdown of each type of financing.

Bank car loan

Banks are a good option for Ford financing if you have a strong credit score.

  • Competitive rates. As major financial institutions, banks can offer low interest rates.
  • Fixed or variable rate. You may get a choice between a fixed or variable rate. A fixed rate means your interest rate (and therefore your loan repayments) will stay consistent throughout, while a variable rate means your interest rate will shift with the markets, which can increase or decrease your repayments.
  • Unsecured or secured. A bank car loan may come as unsecured or secured. If it is secured, your Ford will act as collateral. If it is unsecured, then the loan has no collateral. Before accepting the offer, make sure to confirm whether the car loan is secured or unsecured.
  • Loan terms. Loan terms are usually up to 6 or 7 years, but try to make your loan term as short as possible so you pay less interest overall.

Credit union car loan

Just like banks, credit unions are a solid option for Ford financing if you have good to excellent credit.

  • Competitive rates. Credit unions can also offer some of the lowest rates.
  • Fixed or variable interest rate. Just like banks, you may be given a choice between a fixed rate or variable rate.
  • Unsecured or secured. The car loan may come as secured (your Ford as collateral) or unsecured (no collateral). Be sure to confirm with the lender.
  • Loan terms. Loan terms for credit union car loans are typically up to 7 years.
  • Membership may or may not be required. Credit unions sometimes require a membership to access their products, but not always.

Get a quote from a credit union

Coast Capital does not require a membership in order to get their car loan.

Name Product Min. Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
Coast Capital Car Loan
$10,000
Varies
18-84 months
650
Able to service debt payment of $300/month
Finance or lease both new and used vehicles with competitive rates and flexible terms from one of Canada's largest credit unions. No credit union membership required for this product.
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Online car loan

Online car loans are available to borrowers with good or bad credit. They are a solid option for Ford financing if you want to compare rates and terms from multiple lenders. Online car loans are usually secured with fixed interest rates. They have more flexible eligibility criteria than bank or credit union car loans, and they also have faster processing times. Interest rates will depend on your personal circumstances. If you have strong finances, your rate will fall on the lower end.

Compare car loans to finance a Ford

Name Product Min. Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
CarsFast Car Loans
$500
4.90% to 29.90%
12-96 months
300
Min. income of $1,800 /month, 3+ months employed
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Loans Canada Car Loans
$500
0% to 29.99%
3-96 months
300
Min. income of $1,800 /month, 3+ months employed
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
Car Loans Canada
$7,500
3.99% to 29.95%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
Coast Capital Car Loan
$10,000
Varies
18-84 months
650
Able to service debt payment of $300/month
Finance or lease both new and used vehicles with competitive rates and flexible terms from one of Canada's largest credit unions. No credit union membership required for this product.
Canadian Auto News
$7,500
3.99% to 29.95%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Answer a few simple questions to get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
LoanConnect Car Loans
$500
9.90% to 46.96%
3-120 months
550
No min. income requirement
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Canada Auto Finance
$500
4.90%-29.95%
3-96 months
300
Min. income of $1,500 /month, 3+ months employed
Canada Auto Finance is a broker that connects borrowers with partnered local lenders. Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.
Carloans411 Car Loans
$500
1.90% to 19.99%
Up to 72 months
300
Min. income of $1,600 /month, 3+ months employed
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.
Fairstone Secured Personal Loan
$5,000
19.99% to 23.99%
36-120 months
560
Established credit history and own your home
Fairstone offers secured personal loans up to $50,000.
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Personal loan

A personal loan can be secured or unsecured loan. A secured personal loan involves putting up collateral such as your house or investments, while an unsecured personal loan involves no collateral. Unsecured tends to have higher interest rates since the lender is taking on more risk without the collateral.

You can take out a personal loan through banks, credit unions or online lenders. Just like with car loans, online lenders of personal loans are more likely to approve borrowers with bad credit. Learn more about secured personal loans or unsecured personal loans.

Finance through Ford

If speed is important to you, then financing through Ford is the fastest way, but your loan may cost more overall. If you finance (i.e. buy the car), you can customize your vehicle and avoid extra charges for wear and tear or going over your mileage limit. Payments go towards equity ownership in your vehicle, and once the balance is fully paid, you own the vehicle free and clear.

Ford has a Standard Purchase financing option: Pay equal monthly payments over 12 to 84 months. Buy a new, used or certified pre-owned Ford vehicle with no kilometre limitations. For example, you can finance the 2020 EcoSport S with 3.99% APR for 84 months based on $0 down payment (subject to credit approval).*

*As of June 2021.

Lease through Ford

If you want to upgrade to a new car every few years, leasing might be a better choice. You will be subject to charges if you go over yearly mileage limits (which range from 16,000-25,000 km) or put too much wear and tear on your car, but you won’t have to worry about the full maintenance and upkeep of your vehicle. Plus, you’ll have the option to buy your vehicle after the lease is up, buy or lease a different one, or walk away altogether. And, if you have the insurance required by the lease agreement, you also get free Guaranteed Auto Protection (GAP), so you won’t have to pay any outstanding balance left on your vehicle if it’s stolen or totaled.

Deals vary by location and may require you to meet certain qualifications.

As with all loans, the rates and terms you qualify for will vary based on your credit history and financial situation.

Requirements to finance or lease a Ford

In order to qualify for financing, you must at least:

  • Be the age of majority in the province/territory in which you’re applying.
  • Have a high enough income to afford repayments.
  • Not have any current delinquent accounts, repossessions, foreclosures or bankruptcies.

These are minimum requirements only. Other factors such as your credit score will also be considered.

Can I get 0% financing on a Ford?

Zero-interest financing is not available through banks, credit unions or online lenders since they have nothing to gain by offering it, but it is sometimes available through dealerships. At least with a dealership, you are moving their inventory. There are key points to consider about 0% financing:

  • 0% interest may only be offered for part of the loan term.
  • 0% interest is only available to certain models.
  • To be approved, you’ll need spectacular credit (above 700).
  • Negotiating the car price will be difficult, so you may end up paying more.
  • The loan structure will likely be set in stone.

Before signing the dotted line for 0% car financing, be sure to compare offers from other lenders so you can be confident you’ve found the right deal.

Representative example: Leon buys a Ford

Leon, a resident of Ontario, runs a successful cleaning business known for using plant-based, non-toxic cleaners. He wants to buy a car to travel between job sites and is hoping to find an affordable model that will make less of an environmental impact than a traditional vehicle.

After doing some research, Leon decides to buy a Ford Fusion Hybrid SE priced at $33,000.00. He places a 20% deposit of $6,600.00 and heads to his local bank to get an auto loan to cover the rest. Because of his strong credit, Leon is approved for a loan to cover the outstanding amount plus 13% HST ($26,400.00 + $4,290.00). He also pays approximately $180.00 to register his vehicle with the provincial government – this includes the cost of license plates, a sticker and a vehicle permit.

Cost of new vehicle$33,000.00
Loan typeAuto loan (term loan)
Loan amount$30,690.00
Interest rate (APR)5.50%
Loan term7 years
Additional fees4.00% origination fee ($1,227.60)
Payment amount $441.02 monthly or $203.34 biweekly
Total loan cost$37,045.68 with monthly payments or $37,007.88 with biweekly payments

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

Does Ford offer special discounts or programs?

Ford makes it easy for people with little of no credit history to own a vehicle through its programs for First-Time Buyers, Graduates and Newcomers. Plus, if you fit into one of these categories, some dealerships may offer you a discount of around $500 on a new car.

If you’re a graduate, you need to be over 18 years old, employed (or soon-to-be employed) and must show proof that:

  • You have graduated, or will graduate within 4 months, from a Canadian accredited University undergraduate degree program, from a 2-year college program, from a 3-year CEGEP D.E.C. program in Quebec, or from a recognized military or police academy.
  • You are a full-time post-graduate student who has graduated from a Canadian accredited university with a Masters, Doctorate or PhD program within the last 24 months.
  • You are a full-time student who will graduate from a Canadian accredited University with a Masters, Doctorate or PhD program within the next 24 months.

Newcomers will need to show proof that they are:

  • A landed immigrant with a Permanent Resident Card IMM5688 or IMM5292;
  • A foreign worker with a Work Permit IMM1102 or IMM1442 ; or
  • An international student with a Study permit IMM1208 or IMM1442.

Some dealerships also offer discounts for active, retired and veteran members of the Canadian military, plus their spouses. Exact offerings vary between dealerships, so check with your local dealer to find out what you may qualify for.

How much are Ford cars?

The price of your Ford will vary based on where you live, your negotiation skills, condition of the car and any add-ons you choose. Below is a price snapshot based on the Ford Canada website.

ModelPriceBodyCondition
2021 Ecosport$25,399 starting MRSPSUV crossoverNew
2021 Escape$27,799 starting MRSPSUVNew
2020 Fusion$25,485 starting MRSPSedanNew
2021 Mustang$31,895 starting MRSPSports carNew
2020 Fusion Hybrid$28,375 starting MRSPSedanNew
2018 Ford Escape$22,588SUVCertified pre-owned
2017 Ford Escape$16,995SUVCertified pre-owned

Does a new Ford come with a warranty?

Yes. The standard Ford New Vehicle Limited Warranty covers all models except the F-650/750 models, which will each have a slightly different warranty. According to Ford’s 2021 Warranty Guide, the New Vehicle Limited Warranty includes coverage for:

  • Basic. 3 years or 60,000 km — whichever comes first
  • Corrosion (perforation only). 5 years, unlimited distance
  • Powertrain (includes the engine, transmission and front/rear/all/4-wheel drive). 5 years or 100,000 km — whichever comes first
  • Diesel engine. 5 years or 160,000 km — whichever comes first
  • Safety restrain system. 5 years or 100,000 km — whichever comes first
  • Aluminum body panel corrosion coverage. 5 years, unlimited km
  • Emissions.
    • Defect/performance. The earlier of 24 months or 40,000 km for light duty
    • Defect/performance. The earlier of 5 years or 80,000 km for heavy duty
    • Certain emission parts. The earlier of 8 years or 130,000 km for light duty
  • Hybrid/electric unique components. 8 years or 160,000 km — whichever comes first
  • Diesel engine unique powertrain coverage. 5 years or 160,000 km — whichever comes first

      Compare car loans

      Bottom line

      Manufacturer financing is one of the fastest ways to drive off in a new Ford — but it’s not always the most affordable. Instead, you may want to compare car loans from different banks, credit unions and online lenders before heading to the dealership to make sure you’re getting the best deal.

      Frequently asked questions

      Image source: Ford’s Official Page (www.ford.ca)

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