Ford has rolled out a whopping 7-year loan option for the new 2021 Bronco Sport. Even though the brand only started taking reservations on Monday,
According to a dealer incentive bulletin, Bronco Sports offer 84-month financing at 5.9% APR through Ford Credit. That's the exact same rate you'll find on other Fords like the Edge and F-150. Given that the Bronco Sport starts at $28,155, the offer in question would translate to a monthly payment of just $410/month.
But is that really a good deal? Although the payment may sound attractive, the example would involve over $6,200 in interest and actually cost $34,436. As we reported yesterday, Bronco Sports are already eligible for 0% APR for 48 months. That said, the shorter loan would cause the payment to skyrocket to $587.
On the surface, paying $177 less (per month!) with the 7-year option could seem like an attractive proposition. However, the relatively high rate makes this an expensive loan. For comparison, a 6-year option available at 3.9% would cost $3,468 in interest, while a 5-year offer at 1.9% brings that down to $1,381.
Ford is already offering 0% APR on the Bronco Sport less than a day after its official reveal. According to dealer incentive bulletins, the rugged-looking
To start, all 2021 Bronco Sports offer 0% APR for 48 months through Ford Credit. Alternatively, 60-month and 72-month options are available at 1.9% and 3.9%, respectively. Initial offers for leasing aren't nearly as good with a rate equivalent to 4.6% APR and no sign of any rebates to help drive down the price.
The new Bronco Sport will start at $28,155 with destination, over $7,800 less than a 2020 Jeep Wrangler Unlimited ($36,040 with automatic transmission). Interestingly, that's also less expensive than the 2-door Bronco ($29,995) which isn't due to arrive until 2021 and isn't eligible for the same incentives.
So is the Bronco Sport a good deal? For reference, the latest version of the Wrangler is roughly 2 years old and features 0% APR for 36 months. Although we've seen Wrangler rebates and Employee Pricing promos come and go, early offers on the Bronco Sport appear to be considerably more aggressive at this early stage.
In terms of MSRP, the Bronco Sport severely undercuts the Wrangler Unlimited. However, real-world discounts could make the Wrangler a compelling value. For reference, the last redesign of the Wrangler was followed by an oversupply in most parts of the country that resulted in dealer discounts worth as much as $9,000.