Many car retailers, including Ford's network of authorized dealers and the used car retailer CarMax, offer vehicle financing that allows customers to pay for their cars on a month-by-month basis. Ford loans money to customers through its financing arm, Ford Credit. Customers must apply for credit from Ford Credit, which takes into account credit history, income and several other factors when deciding whether to approve the loan.
Alternatively, customers desiring to pay for a new Fiesta in monthly installments can lease the car from Ford Credit. With a lease, a customer makes monthly payments for a set period of time on a set percentage of a car's value. At the end of the lease--generally one, two or three years--the customer can either buy the car outright or return it to the company.
Ford Credit only extends loans to customers purchasing new or certified pre-owned cars from Ford dealers. For customers purchasing a used Fiesta from a non-Ford dealership, many used car dealerships also offer financing. The nationwide used car retailer CarMax, for example, provides car loans with monthly payment plans to its customers. Alternatively, customers can get auto loans with monthly repayment plans from many banks and credit unions, independently of auto retailers. These lenders take into account the same factors as auto retailers during the application process.