Want to Lease a Ford EV? Keep In Mind You Can No Longer Buy It Out
Ford has followed Tesla’s lead in no longer offering the option to buy out a leased EV. What is the reasoning behind the change?
Changes continue to abound in the ever-evolving electric vehicle (EV) landscape.
Ford
recently followed Tesla’s lead in no longer giving its leaseholders the option of buying their leased EV at the end of the term. Up until now, the norm was that customers leasing had the option to buy their vehicle at a pre-negotiated price at the end of the term. This would give the customer a degree of certainty as to what was down the line. But, like so many chain reactions from Covid, auto industry trends have shifted dramatically, and
Ford
seems to be one of its leaders. Why is Ford changing its leasing policy?
Starting during the first Covid shutdown and continuing today, the price of used cars has skyrocketed. This was a result of higher demand (people weren’t flying so 2020 was the year of the road trip) on top of decreased supply (factories were shut down due to outbreaks). So, if you were to sell your used car, you stood to make top dollar.
The supply chain is slowly catching up but, thanks to expensive gas, this trend is continuing with EVs. The short of it is that the deprecation of used EVs is far less than it used to be. According to
Clean Technica
there have been reports of nearly new EVs going more on the auction block than they did on the new car lot. The thought of you leasing and then potentially turning around and selling the car for more than the pre-negotiated rate has sent the carmakers into a tizzy.
So like an over-disciplinary parent, Ford has said “no more!” and has ended the buy-out option for its F-150 Lightning,
Mustang Mach-E
, and E-Transit Van—all 100% EVs. Ford’s justification is a little fishy
Of course, like any good PR spin, Ford has made it sound like it’s not simply about the money. In a letter sent to their dealerships, they explained how it was better to keep the batteries within the Ford network because of their capability to recycle 95% of the used batteries to create new ones.
In a world where EVs are in demand and the raw materials for batteries are scarce, recycling 95% of battery materials is not a bad thing, but there is a large looming paradigm shift for EV owners.
The battery issue coupled with the complex software updates that EVs frequently undergo begs the question of true ownership. Is there a time coming where, even if you’ve purchased your EV outright, the automaker still lays claim to the future dead battery as well as the software that runs the car?
Insurance for your lease
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