Ford Halts EV Lease Buybacks, Hopes to Cash in on Used EVs
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Ford Halts EV Lease Buybacks

Ford Halts Lease Buybacks

It seems like Ford has plans to cash in on the sky-high prices in the used car market at the expense of their lease customers, who are no longer allowed to buy out their cars at the end of their lease.

Ford Motor Co. has announced that it will stop issuing leases that allow customers in most states to buy its all-electric vehicles at the end of the lease. Instead, customers must return the vehicle when their contract is up, and lease a new Ford vehicle if they so desire.

The new policy applies to leases that began on or after June 15 and affects 38 states, with the company announcing plans to implement the no buyout policy in the 12 remaining US states by the end of the yea The new policy applies to hot-selling models like the Ford Mustang Mach-E, F-150 Lightning pickup, and E-Transit van, but doesn’t (yet) apply to hybrids or plug-in hybrids like the compact Escape (at top).

Ford says the policy will help manage EV battery recycling and localizing battery production by keeping said batteries within the Ford network, and that this will help maintain control over battery recycling and materials.

 

We’ve Seen This Before

Tesla Raises Prices
 

If you’ve been following along, Ford’s move shouldn’t come as a shock, honestly. Tesla made a similar decision back in April, and they weren’t even shy about it being a cash grab.

What’s more, Honda and GM made moves in 2021 to limit customers’ ability to trade out of their lease by refusing lease buyouts to dealers outside of their brands, which works to help them keep customers “loyal” by making it tougher to leave (think about switching from Apple to Android – what would happen to all your iTunes songs, if it was 2009 and you still bought music on iTunes?).

Used car prices continue to climb in 2022, and EVs have probably the highest used car values by virtue of their limited supply and record gas prices. And, as long as battery production continues to be a major sticking point for many manufacturers, it only makes good business sense to keep control of the batteries you do have, right?

That’s our take, what’s yours? Scroll on down to the comments and let us know what you think of the Blue Oval’s bid to keep it all in the family there.

 

SOURCE | IMAGES: AUTOMOTIVE NEWS.

AUTHOR: 

JESSICA MCCORMICK

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