But in metro Detroit, Lithia’s Suburban Collection GM Jim Elder suggests that the headline number won’t matter if the monthly payment misses the mark.
His POV: “Eight out of 10 cars that I sell, people are leasing them,” Elder told Daily Dealer Live hosts Sam D’Arc and Uli De’Martino. With those, shoppers are landing monthly payments in the $300 to $350 range.
That’s a no-brainer vs a $30K traditional loan, stretched over five or six years, with a $600–$700 payment.
Case in point: He says the Lightning XLT pickups are flying off the shelves. And with $14,000 in lease incentives, including the federal EV credit, it’s clear why.
“If I had a hundred Lightning XLT, F-Series pickup trucks right now, I would sell every one of them,” Elder said. “But what’s driving that is not the technology or the EV part of it, it’s the price point.”
His point: Take away even half those incentives, and “it’s gonna drop” in demand, which is also why he’s not on board with an all-EV push.
“I hope they don't just totally vacate the ICE program…we've got to have both things, because, obviously, EVs are not for everyone, we all know that,” Elder said. “As long as Ford doesn't force it down everyone's throats between the dealers and their customers, you know, it'll work.”
Still, Elder says his stores are ready for Ford’s EV lineup, with upgraded facilities, chargers, and trained service teams.
“We got to be better than everybody else. We got to be better on social media. We got to give a better customer experience. We got to get a better customer experience in the service department,” he said. “And that's where the kind of like the ABCs of the car business take over.”
What we’re watching: Ford’s $30,000 pickup might not be a guaranteed hit. But it is a test of whether the OEM can keep the lease math in line with market reality, and whether dealers can make the customer experience good enough to hold the line when incentives shift.
A quick word from our partner
Under-collected fees, upset customers, negative online reviews, buyback letters, and more.
DLR50™ is the solution for your out-of-state titling pains.
DLRdmv® understands the impact out-of-state deals have on your business, as they can impede your desk and damage CSI. That’s why they developed DLR50™, to modernize and streamline the entire process for you and your team.
CDG readers can schedule a short demo and receive 30 days of free DLR50 unlimited full-service access. Use code News30 at DLRdmv.com/CDG to get started.
DLRdmv®, The Dealer’s DMV™
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
