How exactly does the Management Lease Program work? Don’t participants have to pay a monthly lease payment? I’ve seen people comment that this is profitable to Ford but how does this benefit Ford? How is it anymore profitable than leasing to the public?
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I can tell you from first hand experience, the management leases are not super good. Most vehicles cost from $400 to $750 per month but it does include insurance and maintenance. The monthly fee comes out of your check. Some of the Lincolns go up to $1100 per month.
The lease program that you mention is formally a vehicle evaluation program. The company does receive a tax break for it.
Participants pay a monthly rate that is a certain percentage of the dealer invoice price. With that maintenance, repairs and insurance are covered. In the past there have been special offers (incremental vehicle, lower price) in order to keep certain vehicle lines moving or in other cases hot selling vehicles were not offered in the lease program.
A lot of years Ford will move one or two products with attractive lease rates. F150's had cheaper leases in 2018-2019 when Ford seemed to be fighting to maintain truck leadership. Repaired hail damaged vehicles are on "special" about once every decade, Ford doesn't want to sell them as new.
If you live in Wayne county or have teen drivers = high auto insurance rates the lease program could be a good deal. Otherwise it may not make sense.
Huh?