Ford Ends Lease Buyout Option on All EVs
Ford announced that customers who are leasing any of the Blue Oval’s all-electric vehicles will no longer be able to buy out the vehicle at lease end. The new policy currently impacts lessees in 38 states and will roll out across the country by the end of 2022. The change impacts the automaker’s three available EVs (the F-150 Lightning, Mustang Mach-E and E-Transit) and applies to leases initiated on or after June 15. Customers who signed a lease prior to this date will still have the opportunity to buy out the vehicle.
According to the automaker, the changes to its lease policy will help manage its EV battery recycling and materials. Ford previously announced a $22 billion electrification strategy that included the establishment of the Ion Park global battery center in southeast Michigan, where it plans to scale battery design and production.
“Starting June 15, for new leases on F-150 Lightning, Mustang Mach-E, and E-Transit van EVs, customers will be able to return the vehicle at lease end and renew into a new vehicle, or they may return the vehicle at the end of the lease,” a Ford Credit spokesperson said in an email to Cars.com. “Ford wants to make electric vehicles more sustainable, drive down the cost for batteries, and ultimately help make electric vehicles accessible and affordable for more Americans. Ford’s battery strategy includes recycling and localizing battery production, and Ford Credit’s plan for EV leasing enables customers to replace their vehicles with the newest model at lease end while keeping the vehicle in the Ford network longer so Ford can better manage battery recycling and materials.”
Ford isn’t the first automaker to change its lease policy. In April, Tesla announced it would no longer allow lease buyouts for any of its models — the second time that Tesla adjusted its policy, after previously imposing lease restrictions on the Model 3 in 2019.
Ford’s announcement comes at a time when new-vehicle inventory is scarce and used-vehicle prices are hitting record highs. For consumers coming up on the end of their lease, buying out the vehicle can be the most economical choice since the residual value set at the start of the contract will likely be lower than the vehicle’s current market value.
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