At least in recent history, the majority of Ford and Lincoln customers have opted to finance their new vehicle purchases rather than lease, which hasn’t always been the case – particularly across the entire industry. However, both Ford and Lincoln continued to lead the proverbial pack in that regard in the first two quarters of 2021. In Q1, 60.18 percent of Lincoln owners opted to finance their new vehicle, versus the 39.82 percent that leased instead. Now, according to the latest version of Experian’s State of the Automotive Finance Market report, that trend also continued in Q2 2023.
While 82.89 percent percent of Ford buyers opted to finance their new vehicle in Q2 – compared to the 17.11 percent that chose to lease – the former figure was a little smaller for Lincoln, as has historically been the case. On the luxury side of The Blue Oval, 57.60 percent of customers opted to finance their new vehicle acquisition in the last quarter, compared to 42.40 who opted to lease. While that total represents a small decline versus the first quarter of the year, one could easily blame it on interest rates, which have risen multiple times over the past few months and could potentially continue to do so as the Federal Reserve aims to cool off soaring inflation.
Compared to other automakers, Lincoln still ranked near the top in terms of finance mix. In terms of its luxurious peers, the brand trailed only Genesis, Jaguar, Land Rover, and Lexus in that regard, ranking ahead of BMW, Mercedes-Benz, Cadillac, Acura, Infiniti, and Audi.
As Ford Authority previously reported, lease rates continue to remain far below historical standards, which is creating problems for institutions such as Ford Credit. Part of this trend can be attributed to the fact that without incentives, leases don’t necessarily offer lower monthly payments than loans anymore, mitigating one of their biggest advantages.