Ford appears to take yet another page from the Tesla book as it reportedly eliminated the purchase option for new electric vehicle leases in 37 states.
In a letter sent to dealers and seen by Cars Direct, Ford says the decision will support the company's efforts to go carbon-neutral and lower battery production costs in the United States. Battery costs remain a big hurdle for carmakers making the switch to electric vehicles.
"The purchase of the BEV Lease is to aid in our goal of delivering carbon neutrality by 2050 by controlling the vehicle battery through its life, keeping it in the Ford network.
Ford Motor Company is committed to making Battery Electric Vehicles (BEVs) more sustainable and affordable for our customers by localizing the complex battery supply chain network, creating recycling options for end-of-life vehicles, and increasing U.S. battery production."
Ford letter to US dealers
Effective June 15, Ford Credit has updated its new lease agreements in 37 states by adding the language "you do not have the option to purchase the Vehicle at the end of the lease term." The letter also notes that the remaining 13 states and the District of Columbia will see the change "prior to Q4" this year. A Ford Credit spokesperson confirmed for Cars Direct that the letter is accurate.
The 37 states that lose the buyout option for new EV leases include the nation's biggest markets for electric vehicles, such as California, Florida, Texas, Washington, New York, Arizona, Oregon, Georgia, Illinois, Massachusetts, Virginia, and more (see the full list at the bottom of this page).
Ford's move to eliminate the purchase option at the end of a lease comes after Tesla did the same thing in April for all its models after limiting lease buyouts for years on select models.
Interestingly, Ford's lease buyout changes will only affect the Mustang Mach-E, F-150 Lightning and E-Transit—i.e. all of the brand's EV models on sale today. The letter to dealers makes no mention of hybrids and plug-in hybrids like the Ford Escape PHEV.
By focusing on exclusively on its EVs, Ford's changes may signal its intention to take more control over the lifecycle of its electric vehicles.
States where Ford no longer offers an EV lease purchase option
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia