Ford Is Turning Mach-E Inventory Into Rental Cars

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Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

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, Senior Pricing Analyst - January 25, 2024
2024 Ford Mustang Mach-E Bronze Edition front view

Ford is allowing dealers to rent out the electric Mustang Mach-E. According to a bulletin sent to dealers seen by CarsDirect, the 2023 Ford Mustang Mach-E is now included in dealer rental programs. This could also enable more customers to take advantage of EV loaner vehicles and help get remaining inventory off dealer lots.

The change took effect on January 15th and enables dealers to enroll 2023 Ford Mustang Mach-Es into the Ford Rent-A-Car (FRAC) and Dealer Daily Rental (DDR) programs. In its letter, Ford wrote that "All 23MY Mustang Mach-E models in dealer stock will be eligible to rebill into the 24PY FRAC and DDR program."

The goal, Ford says, "is to potentially increase the number of electric vehicles (EVs) in loaner service and support the launch of the Model e Pickup & Delivery with a Loaner standard." In addition, the brand says that the program "provides an opportunity for non Model-e dealers to have EV loaners available for customers."

2024 Ford Mustang Mach-E Bronze Edition EV back view

Ford has had a somewhat contentious response from dealers as a result of its policy on selling EVs. While having more EVs available for customers seems like a noble aspiration, this could beg the question of whether or not Ford is looking for a way to deal with a glut of Mach-E inventory amid sagging consumer demand.

Interestingly, Ford's letter specifically says that 2024 Mustang Mach-Es "will not be eligible to enroll" in the program. National inventory data suggest there may be as many as 17,000 2023-model-year Mach-Es still left in stock at dealers. Ford's official website still only lists the 2023 model and has no mention of the 2024 EV.

Based on our analysis, dealers are being paid to turn higher-end Mach-E models into rentals. That's because Ford is offering a $1,750 "off invoice credit" or "adjustment" on Mach-E Premium and GT grades. This would appear to literally be an incentive for dealers to convert well-equipped Mach-Es into loaner cars.

This may also beg the question of whether or not this could fuel an increase in pre-owned Mach-E inventory down the line. We'll have to wait and see what happens to know for sure. For now, Ford shoppers who've always wanted to try out an EV may have a better chance than ever to do that this year at their local dealer.

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Pictured: 2024 Ford Mustang Mach-E Bronze Edition

, Senior Pricing Analyst

As CarsDirect’s resident pricing expert, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

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