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NEW FORD CREDIT PROGRAM MAY CONVERT CASH BUYERS TO LEASING

 NEW FORD CREDIT PROGRAM MAY CONVERT CASH BUYERS TO LEASING
 DEARBORN, Mich., May 26 /PRNewswire/ -- Careful consumers with an eye on the bottom line will be interested in Ford Motor Credit Company's new lower-cost, one payment leasing program, the Red Carpet Lease Advance Payment Program. It can help save customers money, allow them to invest money that would normally be locked into a cash purchase of a vehicle, and remove the inconvenience of making monthly payments.
 Ford Credit's new Advance Payment Program Option offers the following customer benefits:
 -- Lower initial cash outlay compared to a cash purchase. In a lease, customers pay only for the use of a vehicle, not the entire vehicle.
 -- Control. Customers retain more of their personal savings and investments when compared to a cash purchase.
 -- Savings. When compared to a traditional lease, the Advance Payment Program goes one step further -- when all the lease payments are made in advance, the amount paid is less than the total of monthly payments under a regular lease. This reflects some of the value of up- front payment.
 -- One-payment convenience. There are no monthly checks to write.
 -- Security. The future value of the vehicle is "guaranteed" because the lease-end value is established at lease inception. This gives customers three options to protect them at the end of the lease:
 1. Return the vehicle and begin the process again to lease a new vehicle.
 2. Exercise the purchase option to buy and keep the vehicle.
 3. Exercise the purchase option, arrange for the sale of the vehicle, and keep any profit.
 -- Flexibility. The Advance Payment Program includes a purchase option. Customers can opt to buy the vehicle at any time during the lease term.
 The program is expected to appeal to customers who have traditionally preferred to pay cash, but who also want to keep more of their personal investments.
 "This kind of lease offers good value," said Arthur M. Spinella, director of automotive research at CNW Marketing/Research in Bandon, Ore. "If you're going to pay cash for a car or truck -- a depreciating asset -- it makes more sense to minimize the cash 'tied up' in that vehicle and invest the rest.
 "Our research with cash buyers indicates that 80 percent would support this type of leasing if it were offered to them."
 The Advance Payment Program is available through participating Ford and Lincoln-Mercury dealers.
 -0- 5/26/92
 /CONTACT: Jessica Hatchigan of Ford Motor Credit Company, 313-594-2527/
 (F) CO: Ford Motor Company; Ford Motor Credit Company ST: Michigan IN: AUT SU:


JB-DC -- DE002 -- 3602 05/26/92 08:42 EDT
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Publication:PR Newswire
Date:May 26, 1992
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