With the prices of new vehicles reaching new heights in recent months, it’s not terribly surprising that many people are either opting to lease or finance those purchases with longer terms in an effort to keep payments down. According to Experian’s Q4 2021 Auto Finance Insights Report, however, the overwhelming majority of Ford buyers chose to finance their vehicles last quarter, which is an interesting development when compared to the automaker’s competition.
However, Ford’s new Options Plan has proven to be a popular option on vehicles like the Ford Mustang Mach-E, and will also be available with the Ford F-150 Lightning, which has higher residual values than its EV brethren but lower than the ICE F-150. Ford’s Options Plan is a type of balloon financing that provides lower monthly payments than a purchase, yet also requires a larger one-time payment at the end of the loan term. However, it also puts the vehicle in a buyer’s name, unlike a lease. That last little detail allows consumers to claim the federal EV tax credit of $7,500, which lessees aren’t eligible for.
Meanwhile, the Mach-E was the third-most financed electric vehicle in Q4, while the ICE Ford F-150 was the fourth most-leased vehicle last quarter. With incentives hitting long-time lows and many hot new vehicles being exempted from lease deals altogether, it’s possible that even more people could turn to loans moving forward.
Source: Ford Authority
