Consumers are finally giving Ford Motor Co. credit for its quality gains, translating into higher residual values and auction prices for its used cars and trucks.
And that means lower lease prices for its customers.
According to the latest survey by Automotive Lease Guide, Ford posted the biggest gain in perceived quality — increasing 4.7 points over the last six months. During the same period, ALG said the average residual value of Ford’s cars increased by $2,400, while the industry as a whole saw only a $616 increase.
“They’re doing extremely well,” said Matt Traylen, chief economist for ALG. “This has been a huge upswing for Ford.”
Traylen attributed Ford’s gains to the strength of its new products, its “disciplined” approach to incentives and to favorable public opinion stemming from its decision to forgo a taxpayer bailout last year.
“That was very important in consumer minds,” he said. “Of course Ford’s new products also … have been very well received by the press and the public.”
These findings are important, because ALG’s numbers are used by banks and other lenders to set lease prices for cars and trucks.
Jim Farley, Ford’s global head of sales and marketing, said this report will have an “immediate impact” on monthly payments for customers who lease a Ford, Mercury or Lincoln product.
Moreover, he said the value of Ford’s cars and trucks is increasing at auction, meaning customers who buy their vehicles can expect to get thousands more back in their wallets when they trade them in.
On average, Farley said, Ford vehicles five years old or less are now selling for $3,000 more at auction than they were a year ago.
Farley said Ford will tout these gains in all of its upcoming advertising and sales promotions.
Articled copied from “Auto Lease Guide: Ford Shows Biggest Gains in Quality” by Bryce G. Hoffman of The Detrot News.
