According to a report by the Wall Street Journal, FoMoCo will increase lease prices on trucks and SUVs as the resale value of the segment diminish and as Ford’s finance arm reports ‘extreme losses’ on those vehicles. The report said the FoMoCo will price pickups and SUVs high-enough so that consumers aren’t interested in leasing the vehicles at all.
A memo sent to Ford dealers read: “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 line,” the newspaper reported.
The changes will take effect August 1st and will affect the new 2009 Ford F-150, Ford Explorer and Sport Trac SUVs.
Chrysler announced last week that starting August 1st, it will exit the leasing business altogether.
Source: Automotive News (Subscription Required)