Ford ending truck leasing program
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Postmaster
Joined: Jan 2007
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From: Circle Pines
Ford ending truck leasing program
I found this on and thought I would share.
Reply to: sale-775049813@craigslist.org
Date: 2008-07-29, 3:32PM CDT
Ford is done with the Leasing Business, or at least making in tough to get into a lease coming sooner than expected. AUG 1st, 2008!!!! The announcement was made today, and currently the residuals on a Super Duty Truck are in the high 40's up to 53% depending. What that means is when the truck market tanks, you don't lose you walk away! You can still lease a truck through August 1st, 2008 on SUVS and Trucks, and get the great payment options and save yourself depreciation before Ford cancels leases all together.
Chrysler did it, and soon Ford will start to push customers to purchasing.
Call Boyer Trucks Leasing Today and get locked in to your lease. 612-378-6000!
Reply to: sale-775049813@craigslist.org
Date: 2008-07-29, 3:32PM CDT
Ford is done with the Leasing Business, or at least making in tough to get into a lease coming sooner than expected. AUG 1st, 2008!!!! The announcement was made today, and currently the residuals on a Super Duty Truck are in the high 40's up to 53% depending. What that means is when the truck market tanks, you don't lose you walk away! You can still lease a truck through August 1st, 2008 on SUVS and Trucks, and get the great payment options and save yourself depreciation before Ford cancels leases all together.
Chrysler did it, and soon Ford will start to push customers to purchasing.
Call Boyer Trucks Leasing Today and get locked in to your lease. 612-378-6000!
Ford Parts Specialist
Joined: Nov 2006
Posts: 88,826
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From: Simi Valley, CA
It's true...Ford is just following Chrysler & GM's lead.
Chrysler has ended their lease program, and GM announced several days ago that they were no longer going to lease any vehicles...car/truck whatever.
GM North America is in a huge financial bind, and has stopped issuing stock dividends for the first time since 1933.
Chrysler has ended their lease program, and GM announced several days ago that they were no longer going to lease any vehicles...car/truck whatever.
GM North America is in a huge financial bind, and has stopped issuing stock dividends for the first time since 1933.
Posting Guru
Joined: Jan 2006
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While Chrysler and GMAC are cutting out leasing altogether, Ford is just raising lease prices on its sucky-residual trucks and SUVs to make them "lease proof." The Wall Street Journal reports Ford officials sent a memo to dealers Monday that said "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 lines." The memo specifies the Ford F-150 and Super Duty pickups, and the Ford Explorer and Sport Trac SUVs. They're raising lease prices so high customers won't agree to the terms. [NB: We've predicted this de facto exit from leasing for GM.] Last week, Ford revealed that average auction values for 24- and 36-month lease vehicles were down $2.7k and $2.4k each, respectively. In its recent financial statements, FoMoCo wrote-off $2.1b for leasing losses.
Wall Street Journal »
Wall Street Journal »
FTE Leadership Emeritus
Joined: Sep 2000
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From: Stephensville WI
This morning CNN reported that Chrysler is stopping the lease business, but Ford is just raisig rates to cover for the decreased resale value of the trucks and SUVs.
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Ford Parts Specialist
Joined: Nov 2006
Posts: 88,826
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From: Simi Valley, CA
GM announced several days ago, the end of their vehicle leasing programs, and like Chrysler, it includes every vehicle.
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FTE Leadership Emeritus
Joined: Jul 2002
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From: Long Island USA
Read in the local paper Ford was doing the residual thing... not ending leases.
What it means is that they are effectively killing the reason you would get a lease. The payments will increase dramatically.
My '01 was leased from Ford Credit - after four years, I bought it for only $9K. It was worth well in excess of $16K at the time based on the mileage.
Now, after four years, a truck is probably only worth $9K anyway - used prices have TANKED.
What it means is that they are effectively killing the reason you would get a lease. The payments will increase dramatically.
My '01 was leased from Ford Credit - after four years, I bought it for only $9K. It was worth well in excess of $16K at the time based on the mileage.
Now, after four years, a truck is probably only worth $9K anyway - used prices have TANKED.
FTE Leadership Emeritus
Joined: Sep 2000
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From: Stephensville WI
Correct. That is exactly what CNN reported.
Ford is not ending leasing, just bringing the residual in line with the real world, which raises the payment on the vehicle. The net result is you won't save much (if any) money by leasing.
Ford is not ending leasing, just bringing the residual in line with the real world, which raises the payment on the vehicle. The net result is you won't save much (if any) money by leasing.
FTE Leadership Emeritus
Joined: Jul 2002
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From: Long Island USA
If a large financial company (Ford Credit) realizes it's so bad that they have to do something that will effectively keep people from leasing, that's not a good thing.
Laughing Gas
Joined: Jun 2006
Posts: 951
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From: So Cal
I was thinking more long term ,
less sales = less in the used market
If a person or company can not get a lease and does not want to "purchase" new.
A slightly used one look's like a better deal than ever, and should hold prices at least.
less sales = less in the used market
If a person or company can not get a lease and does not want to "purchase" new.
A slightly used one look's like a better deal than ever, and should hold prices at least.
FTE Leadership Emeritus
Joined: Jul 2002
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From: Long Island USA
At which point, it'll be more attractive to Ford Credit to increase (decrease?) the residuals again
Posting Guru
Joined: Aug 2004
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From: Upstate, NY
BINGO!
Leasing on trucks has done nothing but cause the used market to tank. You have to pay the piper on one end or the other and Ford was just floating checks with the last 4 years of $269/month truck leases. Everyone knew it was going to blow up, including Ford and now it's come to fruition.
It'll be back. Folks can't afford $35K and up trucks and 10 year paper isn't the answer for everyone.
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