Ford Will Launch Used-Car Leasing Business : Cars: The auto maker, already aggressive in leases, sees the move as a way to build loyalty.

In an effort to keep customers from jumping to other brands, Ford Motor Co. said Thursday that it will launch a used-car leasing business, a move that could drastically alter car-buying habits.

Under the plan, which is expected to be unveiled next week at the Chicago Auto Show, Ford dealers would lease used vehicles to customers with the help of Ford Motor Credit.

Previously, if Ford dealers wanted to lease used cars, they had to obtain financing from an outside source, such as a local bank.

However, with the explosion in leasing volume this year, Ford officials have decided to extend special low-rate financing terms to used vehicles.

Ford has been the most aggressive of Detroit’s Big Three in the leasing business, offering a variety of short-term lease deals with attractive monthly payments.

The result has been a dramatic increase in lease deals over the past few years.

According to CNW Marketing/Research, a Bandon, Ore., group that tracks leasing trends, almost 28% of all cars sold in America last year were leased, up from 19.6% in 1990.

Art Spinella, vice president of CNW, predicted the figure will level off near 40% by the end of the decade.

“The way they’re talking about controlling the vehicle from the day it’s born until the day it dies, that number may be small,” Spinella said.

“But I don’t see that happening. There’s still a very ingrained sense that someone wants to own their vehicle,” he said.

Industry analysts say the push into used-car leasing is another way for Ford to strengthen the bond between the dealer and the customer.

Spinella said loyalty rates for purchased cars are typically about 10%. But when a car is leased, the loyalty jumps to almost 60%.

“When you control the customer base, you obviously control, to a better extent, the loyalty to the nameplate,” Spinella said.

“You have first opportunity to do something with that customer and not have to worry half as much about one of your competitors getting the names of your customer,” he said.

On Tuesday, Ford Chairman Alex Trotman said leasing is a key part of Ford’s sales strategy because it allows dealers to sell or lease another vehicle when customers return their cars.

Previously, Trotman said, customers would buy a car and then “disappear in the woodwork,” making it difficult for car makers to maintain owner loyalty.

In order to overcome that, Ford has been experimenting with a variety of lease deals, including a program in Nevada that offers a new car every two years.

Chris Cedergren, an industry consultant for AutoPacific Group, said there are some 40 million cars over 10 years old.

“There’s a hell of a lot of junkers out there that need to be replaced, and those people are not going to buy new cars,” Cedergren said. “They’re going to buy used, and this is one way for Ford to tap that market.”

However, he said Ford will probably have to extend the warranty on the vehicles and keep the monthly payments below $200 to attract buyers.

General Motors Corp. already offers a used-car lease program, but it has not been heavily promoted.

Other auto makers, including Mercedes-Benz and Toyota’s Lexus, offer similar programs.