Ford has implemented a new policy allowing dealers to rent out the 2023 Mustang Mach-E through their Dealer Daily Rental (DDR) and Ford Rent-A-Car programs. This initiative, effective from January 15, 2024, aims to manage excess inventory, but also with a goal to increase the number of EVs in loaner service, particularly supporting the launch of the Model e Pickup & Delivery with a Loaner standard.
As reported by CarsDirect, this policy shift primarily targets the 2023 model year of the Mustang Mach-E, with an estimated 17,000 units still available on dealer lots across the US. To incentivize dealers to participate in this rental scheme, Ford is offering a significant $1,750 “off invoice credit” or “adjustment” for higher-end Mach-E models, specifically the Premium and GT trims.
This financial incentive not only aids in reducing the surplus inventory but also provides an opportunity for non Model-e dealers to offer EV loaners to their customers, potentially increasing overall EV exposure and experience among Ford’s customer base.
Ford’s decision appears to be a response to several market challenges. For one, the Mustang Mach-E has experienced a modest sales increase of only 3% in the past year, lagging behind other Ford electric models like the F-150 Lightning and E-Transit van. Additionally, the removal of the $3,750 federal tax credit for the Mach-E has potentially dampened consumer demand, making it harder for dealers to sell these vehicles.
This strategy could have long-term implications for the pre-owned EV market. As more Mach-Es enter the rental market, it could lead to an increase in pre-owned inventory in the future. Furthermore, with the competitive Tesla Model Y eligible for federal tax credits and enjoying robust sales, Ford’s move to boost the Mach-E’s presence on the roads seems to be a calculated step to maintain its competitiveness in the EV market.