Ford Extends $5-A-Day Lease Program

Tuesday 1:53 pm ET By , Of DOW JONES NEWSWIRES

DETROIT April 29, 2003; Sharon Silke Carty writing for Dow Jones reports that Ford Motor Co. is extending its $5-a-day lease on Mustangs and Rangers until June 16, the company's 100th anniversary.

In announcing the extension of the incentive program, Ford said it has seen " tremendous customer response" to the promotion, which began April 2 and was scheduled to end May 5. The day before Ford announced the program, dealers in the U.S. sold 93 Mustangs nationwide. Mustang sales averaged 465 a day through April 25, the company said.

Sales of the Ranger pickup truck have averaged 508 a day. Ford will announce April sales data on May 1.

"As with all incentives, anything that's a new twist on giving away money tends to have a good shelf life," said Art Spinella, president of CNW Marketing Research. "Expanding it makes perfectly good sense."

The auto industry makes higher margins on sales of certified used cars and trucks, and its most reliable source of those vehicles comes from consumers turning in their off-lease cars. But with the aggressive incentive programs that have been in place since the Sept. 11 terrorist attacks, which have lured consumers to buy cars and trucks with offers of $3,000 cash back or zero-percent financing, leasing has been on the decline as more and more consumers purchase their cars.

"They need this to feed the certified use market," Spinella said. "It's very profitable for them."

Under the lease program, customers can lease a Ford Mustang V-6 Coupe of Ranger Edge 4x2 pickup for $5 a day with a 10% down payment. Mustang V-6 convertibles, GT coupes and other Ranger models are also available "for slightly higher amounts," the company said.

"We've tapped an incredible reserve of goodwill for Ford and a deep well of Mustang and Ranger excitement," said Steve Lyons, president of the Ford division, in a press release issued Tuesday.

Customers who want to buy the car or truck rather than lease can get $3,000 cash back or zero percent financing for 60 months on the Ranger or 36 months on the Mustang. This option expires, along with incentives on other Fords, May 5.

Joe Orlando, sales manager at Fullerton Ford in Somerville, N.J., said the $5- a-day promotion has helped generate a lot of interest in Ford, especially among younger people.

"That's where it really becomes important," he said. "They're making Ford affordable for the younger buyers."