If you’re interested in leasing or are currently leasing a Ford EV, you may not be able to buy it out. When some owners’ leases end, they get the option to buy the vehicle for the remaining price. However, Ford may soon eliminate that option for its electric vehicles. Why would Ford want to stop customers from buying its EVs?
Ford informed dealers leasees can’t buy their Ford EV
According to KBB, Ford sent a letter to dealers informing them of the new rules. The publication says it reached out to Ford to confirm the authenticity of the letter, which CarsDirect first leaked. Moreover, it wouldn’t be surprising, as other automakers have recently done something similar. Ford’s letter to dealers says leases in 37 states will include a clause preventing leasees from buying their cars at the end of the term. Additionally, all other states will see the same change starting before the fourth quarter of 2022.
Why won’t Ford let you buy your EV lease?
In short, they don’t want to lose money on the sale. Currently, prices for every car are being determined based on demand. Almost every car in the market is overpriced because of supply chain issues and the global chip shortage. As a result of these problems, automakers can’t produce enough products to sell to their customers.
Unfortunately, the automaker tends to set the price for a leased vehicle at the time of the lease. Furthermore, when a customer’s lease for a popular EV ends, the price will be lower than the amount Ford is selling the car for. For that reason, many people were buying out their lease because it was cheaper than a new model in the inflated market. However, that won’t happen anymore, as Ford EV leasees will be unable to buy out their lease.
Additionally, dealerships everywhere are struggling to fill their inventory. Finding cars to sell has been difficult for a few years, whether it’s new or used. Ford is using this same rule as a way to supply inventory to its dealers. With a steady supply of used EVs coming off lease, the dealers can purchase and sell them as used car inventory.
Ford isn’t the first automaker to do this
It might sound like Ford is worrying more about money than its customers. However, it isn’t the first (and won’t be the last) automaker to make these changes. Last year, Honda restricted leasees’ ability to sell to anyone but a Honda dealership. Additionally, General Motors considered doing the same thing, while Nissan had to stop its dealerships from trying to upsell leased prices.
If you’re nearing the end of a lease term, be sure to check the contract for the buyout price. If your dealer still allows buyouts, it could be an excellent way to save money. However, like the Nissan dealers mentioned above, some may try to get more money than you agreed upon. Take a careful look at the lease contract, find the buyout price, and ensure that’s all you pay.
You can’t buy out your Ford EV lease
In conclusion, customers who leased a Ford EV can no longer buy it out. Thanks to the unpredictable market, Ford needs inventory and the ability to set its own prices. Unfortunately, Ford isn’t the only automaker doing this, and we’re sure more will follow. Although Ford claims its reasoning has to do with delivering carbon neutrality by 2050, the market and money are undoubtedly underlying factors.