Many people opt to lease their car instead of buy it because of some of the conveniences that can come with this option.
And a new program from Ford could be taking this a step further with its car share program. Ford Credit Link, which is running its pilot program in Austin, Texas, makes it possible for a group of three to six people to share a lease and a car.
“People are already sharing books, homes and a number of things in between,” Margaret Mellott, a spokesperson for Ford Credit said in an email. “This Ford Credit experiment in Austin is asking if the trend toward sharing might apply to sharing the lease of a vehicle by a group of people who may not need a full vehicle lease to meet their mobility needs but who might like to have convenient access to a vehicle when they need or would like to use one.”
The lease is for 24-months, Mellott said.
To take part, “each person in the group must qualify for credit under our consistent credit criteria, and each person is liable for the full amount of the contract,” Mellott said.
The program uses an app that pairs with a vehicle plug-in device the dealership installs in the car. This makes it possible for users to monitor the car, reserve drive time and make car payments.
Even though this program was announced earlier this year, no one has currently signed up to take part. Mellott says their site is seeing a lot of traffic, but claims the lack of participation is because “people seem to be doing their homework as they consider how this might fit their lifestyles.”
Securing an Auto Loan
Doing your homework on a large investment, like an auto loan, is always a good idea. If you’re in the market for a new car, part of your research ahead of time should include checking your credit scores. Doing so will give you an idea of what terms and conditions you may qualify for when taking out a loan. You can do this by viewing two of your credit scores for free, updated every 14 days, on Credit.com.
If your scores aren’t where you’d like them to be, you can work to improve them. You can get your free annual credit report at AnnualCreditReport.com and review the reports for any errors you may need to dispute. You can also take steps like paying down any credit card debt you may have and avoiding new credit inquiries while you work on rebuilding your credit.
[Offer: Denied from a loan? It may be because of a low credit score due to errors on your report. Lexington Law can help you navigate the credit repair process so you can get back on track. Learn more about them here or call them at (844) 346-3296 for a free consultation.]
More on Auto Loans:
- Are There Car Loans for People With Bad Credit?
- What to Do If You Can’t Make Your Car Payments
- Top 5 Worst Car Buying Mistakes
Image: Courtney Keating