Apparently Ford is again following Tesla and no longer allowing people to purchase their leased vehicles.
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Ford no longer allows purchase at end of lease for EVs
- Thread starter jboy210
- Start date
They are doing this because they are too valuable, correct?
Ironically, I remember when Tesla started their leasing program, one of the many bear thesis knocks against Tesla is that Tesla would be “stuck” with unwanted off lease vehicles which they would have to sell at a loss.
Given that there will be limited EV inventory for a long time, EVs should hold value well.
I don't think residuals will drop for much longer than that. They already have orders for multiple years worth of production of the F-150 Lighting. Now this could change as the country slips into recession and layoffs increase.
swaltner
Active Member
So, by that logic, I guess you are saying Tesla intends to crush all the vehicles being returned from leases because they aren’t giving people the option to purchase at the end of their lease.
Prices on used vehicles are crazy right now. People are buying vehicles at the end of the lease term, and immediately selling them to Carmax or the like and turning a nice profit. The lease departments know they can’t guess the correct residual value, or if they do, lease payments are “too low”. So, they’re doing normal depreciation, but not letting you purchase at the end of the lease. Once prices stabilize in X months/years, buyout clauses will return to the standard lease contract.
I am not so sure about buyouts returning unless they become a really bad deal. The 3 and Y don't have them.So, by that logic, I guess you are saying Tesla intends to crush all the vehicles being returned from leases because they aren’t giving people the option to purchase at the end of their lease.
Prices on used vehicles are crazy right now. People are buying vehicles at the end of the lease term, and immediately selling them to Carmax or the like and turning a nice profit. The lease departments know they can’t guess the correct residual value, or if they do, lease payments are “too low”. So, they’re doing normal depreciation, but not letting you purchase at the end of the lease. Once prices stabilize in X months/years, buyout clauses will return to the standard lease contract.
In the UK, before COVID hit, used PEV prices were already increasing.
In the USA, which has low fuel taxation, demand will vary more with fuel prices, but I think that demand will be greater than supply for some time, as BEV production is supply-constrained and other markets take a big chunk of global supply.
thesmokingman
Active Member
Why would you want to buy one in the first place?
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www.theverge.com
Ford recalls nearly 49,000 Mustang Mach-Es over battery safety issues
The order affects over 48,000 vehicles
www.theverge.com
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