Ford has recently announced that they will now allow buyers without credit score to obtain auto credit. Apparently there is even a special discount on new cars for people with low credit score. Why do they do this? They seem to be taking on a lot of risk but I don't understand what they seek to gain.
Traditionally buyers with bad credit are not offered loans, or offered high interest loans to compensate for defaults. However, very low or zero APR has been common for auto loans in the US lately, so it seems unlikely that defaults could be covered by the interest.
Indeed it is true that there is a small number of score-less applicants who are not likely to default in spite of lack of credit history, but there are also many people without a score or with a very low score, who are in fact poor borrowers and are less likely to make payments on time. Why then did Ford (and the auto industry in general) suddenly decide to court such buyers? If more sales are desired, surely the same can be accomplished with simply lowering prices?