Forget About Buying Your Ford EV Once The Lease Is Up

Ford recently made a significant change to its EV lease agreement. As of this month, customers no longer have the option to purchase the vehicle at the end of the lease term.

Cars Direct got hold of a letter sent to dealers recently. A Ford Credit spokesperson confirmed the authenticity of the letter. The new rule is currently applicable to 37 states, but the change will be in effect for the rest of the country by the fourth quarter of 2022.

Ford's new lease rule only applies to its EVs, which include the Mustang Mach-E, F-150 Lightning, and E-Transit.

This new move by Ford follows the same pattern as Tesla, which also discontinued lease buyouts earlier this year.

According to Ford's letter, it 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 US battery production."

This fits in with Ford's large-scale recycling plan announced in September last year. It struck a partnership with Redwood Materials to recycle batteries. In doing so, Ford wants to reduce its environmental footprint while lowering the cost of batteries. To do that, it needs greater control over its electric fleet, and this new lease agreement allows the company to do just that.

"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."

If the world wasn't going through a massive chip and parts shortage, this change likely wouldn't have made the news, but it's bound to anger the average customer. Count yourself lucky if you leased a Mach-E when it was launched. A batch of two-year lease agreements will soon end, and buying that car for its original residual value is a no-brainer. You can quickly flip that car for a profit within a week.

It's an interesting phenomenon; one can see why Tesla wants control over its lease fleet. Used Teslas are selling for more than brand new models, and the same will likely be true of used Mach-Es.