Ford will also offer new sales incentives.

The move by the No. 2 auto maker follows Thursday’s announcement by Chrysler offering loans at interest rates as low as 3.9% for short-term loans on its compact K-cars and trucks. Under Ford’s program, which began Friday and lasts until Jan. 4, buyers can get 3.9% loans for 24 months, 5.9% loans for 36 months, 7.9% on 48-month loans and 9.9% on 60-month loans, or they can opt for a cash rebate of $300 on 1986 and 1987 Ford Escort and Mercury Lynx models.