Ford to sharply raise lease prices on trucks and SUVs
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Apathy Kills
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From: The Left Lane
Ford to sharply raise lease prices on trucks and SUVs
Filed under: Car Buying, SUVs, Trucks/Pickups, Ford
While Chrysler has chosen to get out of the leasing business altogether after taking a bath on vehicles being returned with residual values far below expectations, Ford will reportedly be taking a different approach. Automotive News is reporting that after its finance arm recorded "extreme losses" on its lease vehicles, the automaker has decided to raise prices on its leases for the F-150, Super Duty, Ford Explorer and Sport Trac. Keep in mind that the residual value of these particular vehicles is falling so fast that Ford will be forced to price these leases so high that no consumer in his right mind would actually lease one. So while Ford is not actively removing itself from the leasing business when it comes to trucks and SUVs, its decision to sharply raise prices will have pretty much the same effect.
[Source: Automotive News]
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While Chrysler has chosen to get out of the leasing business altogether after taking a bath on vehicles being returned with residual values far below expectations, Ford will reportedly be taking a different approach. Automotive News is reporting that after its finance arm recorded "extreme losses" on its lease vehicles, the automaker has decided to raise prices on its leases for the F-150, Super Duty, Ford Explorer and Sport Trac. Keep in mind that the residual value of these particular vehicles is falling so fast that Ford will be forced to price these leases so high that no consumer in his right mind would actually lease one. So while Ford is not actively removing itself from the leasing business when it comes to trucks and SUVs, its decision to sharply raise prices will have pretty much the same effect.
[Source: Automotive News]
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