- Ford Mustang Mach-E attracts new buyers.
- Lenders wary about EV resale.
- GM Financial tests refinancing app, and leasing takes a page from subscriptions.
Kelley Blue Book’s Senior Managing Editor Matt DeLorenzo writes This Week in Car Buying, a weekly column on KBB.com. In this week’s news, Matt reports that with order banks for the 2021 Mustang Mach-E electric vehicle open, Ford says it sees a big boost in attracting buyers who haven’t owned a Ford or Lincoln vehicle in 15 years. According to the company, 60 percent of the reservations are these so-called conquest buyers.
There’s a flood of new electric vehicles about to hit the market, at least 46 in the next three model years alone, according to Cox Automotive data. This coming wave of EVs has lenders worried about resale values, which can increase the financial risk on both leases and loans if the used units aren’t worth much in the second-hand market.
GM Financial plans to test an app this spring that allows consumers to refinance their vehicles. According to Automotive News, this app will not carry the GM Financial brand and is designed as a means to bring conquest new buyers for GM vehicles.
While the subscription model may not be for everyone, this approach to vehicle use is causing the industry to rethink things like traditional leasing. Part of the subscription model that users find appealing is the ability to switch in and out of different models as well as being able to seamlessly manage their accounts online.