Ford customers have long been lauded for having higher credit scores than the average buyer, and in spite of rising interest rates, haven’t really weened off of that particular route to vehicle ownership, either. In fact, in Q1 of 2023, 85.19 percent of the automaker’s customers opted to finance their vehicle, versus just 14.81 percent that chose to lease – one of the highest rates of all automotive brands. According to Experian’s latest State of the Automotive Finance Market report, that trend also continued in Q2 2023, too.
In the second quarter of the year, 82.89 percent percent of Ford buyers opted to finance their new vehicle, compared to the 17.11 percent that chose 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, Ford also ranked near the top in terms of finance mix, trailing only Dodge (89.72 percent), Chrysler (85.26 percent), Tesla (83.61 percent), and Toyota (83.58 percent) in that regard. That was good enough to beat out every other automotive brand on this particular list, including BMW, Mini, Lincoln, Volvo, Buick, Cadillac, Chevrolet, GMC, Acura, Honda, Genesis, Hyundai, Kia, Mazda, Porsche, Infiniti, Nissan, Jeep, Ram, Subaru, Jaguar, Land Rover, Lexus, Audi, and Volkswagen.
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.