California Autos Examiner

Tuesday, July 29, 2008

Extreme Lease Makeover: Ford Edition

Ford to raise lease prices, cites 'extreme losses' - Automotive News

Chrysler pulls completely out of leasing. GMAC pulls out of the subvented Canadian lease market. Now Ford announces that customers who lease trucks and SUVs will see higher costs. The WSJ cited a Ford memo to dealers, "'Due to extreme losses Ford Credit is taking on off-lease vehicles, it will be necessary for Ford Motor Credit Company to adjust residuals mid-quarter on the following vehicle line."

Ford's move pretty much follows the track I had discussed in a earlier post. You can still lease a vehicle but it isn't going to be a smokin' deal. That relegates leases to those folks who can use its tax advantages or other business/professional related activities. Ford's move protects the car side of the fence, so you still might be able to pickup a sweet Fusion deal.

In the past I have leased vehicles, usually when the lease was heavily subvented. I took care of the cars and returning them was usually a hassle free experience. Now that I'm a family man with a couple of kids who give any car a good workout, I'm not longer a potential lease customer. Still, I'll always remember my cheap $99/mo deals and getting a new car every two to three years.

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