Free leasing deals are becoming increasingly popular, as companies try to find new ways to attract customers.
But as leases are expiring, some companies are finding that customers have moved on to leasing their vehicles outright, in some cases with much lower terms.
In an effort to ensure customers have access to a quality leasing experience, Ford Motor Company (NYSE:F) and Lexus (NASDAQ:LS) announced on Thursday they will end the Lexuses lease program, beginning next year.
The move comes as the two automakers have been grappling with the same issues: the declining market share of leasing vehicles and the high price of the Lexas.
Ford will pay $3,500 per month for a lease, while Lexus will pay a monthly rental of $2,500.
While Ford’s offer is slightly higher than the Lexes, both offer a similar level of access to Ford vehicles, but the Lexys are a little more expensive.
Both companies said they expect leasing deals will be available on other vehicles and will continue to offer leasing for vehicles with a similar configuration and price.
Ford and Lexis have been on a tear in the past few years, selling more than 1.3 million vehicles and bringing in more than $1 billion in profit.
The two companies are looking to add to their market share in the near term.
Ford recently introduced a new SUV called the Focus Electric, while the automaker recently unveiled its new luxury crossover, the F-150.
Ford has also been working on its own crossover, dubbed the F150 SUV, which will debut later this year.