Ford has warned its dealerships about applying excessive lease buyout fees due to concerns from customers.
Given shrinking dealership inventories and soaring car prices, many consumers are deciding that now is the perfect time to exercise purchase options on their vehicles. Doing so helps them capitalize on rising car prices as buyout prices are determined at the start of a lease and do not reflect current market conditions and prices.
In a letter recently sent to dealers, Ford Credit said customers should not be hit with additional fees if they choose to exercise their buyout option.
Read Also: Infiniti Hits Out At U.S. Dealers Over Lease Buyout Issues
“As you may have seen in the news around the country, some consumers exercising that option are publicly voicing concern over fees being added by dealers,” the letter reads. “Ford Credit and Lincoln Automotive Financial Services policy is for the customer to be charged only the purchase option price as listed in the lease agreement, together with any applicable fees (title and registration) and taxes.”
Cars Direct reports that some dealerships have started charging bogus lease fees in an attempt to capitalize on the current market.
This is not the first time this year that a car manufacturer has warned its dealerships about buyout issues. In February, Infiniti said that it had received complaints from the Better Business Bureau, Consumer Financial Protection Bureau, and Attorneys General over how dealers were handling buyouts with some adding bogus fees or refusing to honor lease-purchase quotes. Nissan also warned its dealerships against engaging in similar practices, noting that violations could trigger funding delays or the inability to participate in certain buying and leasing programs from the manufacturer.
