Leasing has long been a popular choice among many consumers in the market for a new vehicle, for a variety of reasons. Some simply like having the option to essentially pay a vehicle’s depreciation cost and then turn it in after a couple of years, at which time they can get a brand new vehicle without having to worry about paying off a loan or selling/trading in their old vehicle. For lessees, one of the most important numbers worth considering is residual value, however, which is the projected value of an asset when its term has expired, as well as providing clues as to whether a lease is a good deal or not. However, even though leases for Blue Oval electric vehicles are a bit different than ICE models, Ford EV residual values aren’t being calculated differently, according to Ford Credit CFO Eliane Okamura.
“There is no difference at this point on how we assess between the EV and ICE vehicle,” Okamura said while speaking at the recent J.P. Morgan High Yield & Leveraged Finance Conference. “Our objectives are to sell 50 percent of electric vehicles by 2023, that’s the target that Ford has announced. What is interesting that we’re seeing in these electric vehicles is that 70 percent of the customers are new to Ford. So we are working closely with other companies to make sure we have the right offerings and support on the financing side to grow and attract new customers to our portfolio.”
This comment is notable for a number of reasons, including the fact that Ford EVs can’t be purchased when a lease term is up, a change that took effect last year and goes against a commonly available option for ICE vehicle lessees. Additionally, those that lease a Ford EV also aren’t eligible for the federal $7,500 tax credit, which FoMoCo keeps for itself.
Regardless of this and the fact that lease return rates remain well below historical averages – particularly since skyrocketing used vehicle values make purchasing a vehicle at the end of the lease a potentially profitable decision – the Ford Mustang Mach-E has proven to be one of the most popular EVs to lease thus far, while Ford just added a new EV tier to its Blue Advantage certified pre-owned marketplace, too.
We’ll have more on Ford EV residual values soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.
Comments
Just another way for us “TAXPAYERS” to subsidize the sale of EV’s that none of us want !!!!! THIS F’ING CRAP MUST STOP NOW !!!!!
A new K-street handle appears to trash BEV with its bad faith sock puppetry.
Please be gone and return to your hollow tree.
Just to clarify a correct comment made in the article. Yes Ford ‘keeps’ the $7,500 federal rebate on EVs, they are the owner, therefore they must receive it. BUT, when they pass part or all of it on in the form of a rebate to the leasee ireducing the ‘capitalized cost’ it can dramatically lower the payment. As was the case when I leased my plug-in hybrid Fusion. As a customer it was actually better leasing than buying because Ford put the rebate right to the lease. Had I purchased I would have to apply for the ‘EV credit’ when doing my tax return and it is a CREDIT applied, NOT a refund.
Important distinction. Thanks.
You just gotta sit back and laugh at how this EV scam is being perpetrated by the “environmentalists” and automobile manufacturers. And we can laugh even harder at those that are buying this garbage.
Haven’t seen this handle before. Is it a K-street FUDster, or someone swayed by their disinfo? We’ll have to see.
Well I guess you don’t mind paying $4.00
a gallon for gas. It’s amazing that big oil companies raise the price of gasoline with oil that’s still in the ground. Fortunately electric companies are regulated.
No one cares about EVs. Our family joined the grassroots Nationwide boycott against EVs, grassroots always wins.
Oh god, it’s I Am K-street Sam I Am back with trying to gin up the bad faith fantasy grass roots boycott again.
Pure idiocy.
This is the way.
You’re an idiot if you think all the crazy weather we’ve experienced worldwide the past few years – melting glaciers, rising seas, dying coral reefs, severe rain storms and hurricanes, are all early stages of extreme environmental future. We MUST STOP BURNING FOSSIL FUELS in electricity generation plants and automobiles, trucks, lawn mowers, etc.
ALL automakers and truck makers (OTR and consumer) will completely cease making ICE (internal combustion engine vehicles) within ten years, as there will be nearly 4 million EVs produced worldwide in 2023.