Ford Credit boosts loans
Although still on the mend from the 2008 credit crisis, Ford Motor Credit Co. is making more loans to customers and dealers.
Ford Credit financed 32 percent of Ford, Lincoln and Mercury U.S. retail sales in the first half, up from 29 percent a year ago. But the captive was still down from the third quarter of 2008, when its share of Ford, Lincoln and Mercury retail was 46 percent.
Besides the effect on consumer demand, the credit crisis froze the market for asset-backed securities. That temporarily closed one of the main ways captive finance companies raise money to make new loans.
Ford Credit has been much more consistent in financing dealer inventory. The lender financed 81 percent of Ford, Lincoln and Mercury wholesale volume to dealers in the first half, up from 78 percent a year ago.
Ford Credit’s net income increased about 35 percent in the second quarter, to $556 million.
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