Ford Motor Company (NYSE:F) stands out as one of the top stocks valued under $20. On September 30, Ford and General Motors Company (NYSE:GM) launched initiatives with their dealerships to effectively prolong the advantages of the expiring $7,500 federal tax credit on electric vehicle (EV) leases. This strategic decision was made just ahead of the subsidy’s expiration date established by the massive tax reform law signed by former President Donald Trump in July.
Experts in the automotive industry had forecasted a notable decline in EV sales and leasing rates once the tax credit was no longer available, particularly after a spike in purchases by consumers rushing to take advantage of the deadline. The new programs, recently introduced to automotive retailers, involve the financing divisions of the automakers taking proactive measures to secure the credit. In practical terms, financing entities like Ford Credit and GM Financial are providing down payments on EVs that are part of dealer inventories.
Based on information from company documents and conversations with dealers, these down payments enable the lending divisions to qualify for the $7,500 federal tax credit on those particular vehicles. Dealers can subsequently offer leases on these pre-approved vehicles to retail customers for additional months, incorporating the complete $7,500 subsidy into the reduced lease rate. Ford announced that it aims to deliver competitive lease offerings to customers via Ford Credit until the end of the year.
Ford Motor Company (NYSE:F) is engaged in the development, delivery, and maintenance of Ford trucks, SUVs, commercial vans and cars, as well as Lincoln luxury vehicles on a global scale. The company operates through segments such as Ford Blue, Ford Model e, Ford Pro, and Ford Credit.
General Motors Company (NYSE:GM) focuses on designing, manufacturing, and selling trucks, crossovers, cars, and automotive components worldwide. This company functions through various segments including GM North America, GM International, Cruise, and GM Financial.
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Disclosure: None. This article was originally published by Insider Monkey.
