Due to the shortage in semiconductor chips, both new and used vehicle inventories are at an all-time low. Prices, however, remain high. Despite used cars going for more than they are typically worth, Ford’s lease return rates are down to 34% in Q2 2021, which is a drop of over 30% in the past few months. Ford recently rolled out a new Lease Extension Program, which gives an additional six months of lease-end extensions, up to a maximum of 18 months past the customer’s initially scheduled lease termination date.
This program is for customers wanting to lease a vehicle that is currently delayed. Individuals are also likely more tempted to keep their vehicles as new inventory remains low and prices remain high as a result of the chip shortage. However, Ford isn’t the only automaker experiencing low lease return rates, as only 11% of General Motors lessees chose to return their vehicle in Q2. In comparison, 89% decided to purchase the car at the end of the lease term.
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