In December 2016, Ford and GM announced a $1.8 billion deal to sell their massive fleet of large pickup trucks, SUVs, and crossover SUVs to Alpines.
But Ford and Alpine aren’t the only car manufacturers making deals with the luxury-car makers to lease their trucks, which are typically sold at about $25,000 each.
According to the American Automobile Association, the industry was estimated to be worth $2.6 trillion last year.
In 2017, Ford said it would sell its C-MAX pickup to the first owner for $5.2 million.
Ford said the company will pay $2,000 a month for the vehicle, but the leasing company will get $2 million a year from the sales price.
But even if the vehicle sells for less than the $5,000 monthly payment, Ford will still have paid $2 billion for the lease.
This deal may have been a mistake, says Dan Lutz, an analyst with the automotive research firm Kelley Blue Book.
Lutz says Ford’s leasing company is essentially selling a lease to the public at a much lower price than its cost of production.
“You’re essentially buying a lease for the same price as a piece of equipment that’s being manufactured, not the same quality as an actual truck, but it is still an asset for the buyer,” Lutz told VICE News.
According to Lutz’s analysis, Alpina will only be getting $5 million from the sale of the vehicle.
That’s $600,000 less than what Ford will make on its full-sized trucks, but Alpinias profits will be taxed at a rate of nearly 25 percent.
Alpinas tax rate on the sale is set to rise by 25 percent next year.
Alpine leases are the first of their kind in the world.
They are different from conventional leases, which typically require the buyer to pay upfront, or a deposit.
The Alpinos lease is much more flexible, allowing the owner to pay up front.
The owner pays $25 a month on top of the lease, which is more than double the $7 a month that Ford and other big carmakers are charged on their full-size trucks.
The Alpino is more expensive than the regular trucks, at $4,600 a month, but at least it gets a better deal than the Ford or GMs.
That is because Alpinis costs are more reflective of the market than regular trucks.
Alpas vehicles will also cost less than cars and trucks.
The Alpas C-Max will be available in five states: California, Florida, Illinois, New York, and Texas.
Alpine also announced plans to expand into Michigan.