SUVs and Trucks Now More… Expensive?
The seesaw of gas and vehicle prices
For the past few weeks, dealerships across the country had begun to feel the heat with their large vehicle inventory. Gas prices had soared to $4.70 in some areas of the United States with oil nearing $150 per barrel. Incentives on SUVs and large trucks had shot through the roof. Today, however, Ford announced a hike in SUV and truck lease pricing to make their most profitable vehicles unattractive to new car lesees.
According to the Wall Street Journal, Ford sent a memo to their dealerships saying “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.” This is an attempt to salvage whatever revenue they can because of defaults on leases extended to low credit rating individuals, which Ford will also cease to offer with this announcement.
Now is the time to pick up a lease if you’re looking for an SUV or truck. Gas prices have been fluctuating and seem to have settled down, and if the trend continues we may see an overall increase in SUV and truck purchases in the near future. The changes will effect the Ford Sport Trac SUVs, F-150s, Explorer and Super Duty Pickups. Use our fast vehicle search tool on Autobrag.com to find a Ford vehicle before the lease option expires on August 1, 2008.
