The latest on a new contract that gives buyers a lease option on a car in the US article Honda and Toyota announced Thursday that they have reached a three-year lease agreement with the US government that allows consumers to buy a new Honda Civic hybrid and receive up to five years of financing.
The agreement allows Honda and Ford to offer the hybrid at a much lower price than they normally charge, and gives consumers the option to pay less per mile than their usual hybrid.
The deal with the government includes a three year term, with a 20 percent option to extend the term by five years.
Honda said the three-Year Hybrid lease agreement gives consumers two years of finance for the purchase price of the hybrid.
Ford and Mercedes are expected to enter into a similar lease deal with federal regulators, which will be reviewed by the Federal Trade Commission (FTC) in a few weeks, the Wall Street Journal reported.
Toyota said it will enter into similar agreements with federal authorities, the same regulators that are reviewing its hybrid lease deals.
Honda and Hyundai said they are also entering into agreements with the FTC.
The companies are looking to sell between 10,000 and 20,000 Honda Civic hybrids, including the Civic hatchback, with the Ford Fusion hybrid.
The hybrid, which was introduced in 2016, has a price tag of $30,000 to $40,000.
The three- and five-year Hybrid lease agreements allow consumers to save $1,500 a year on their new Honda, Ford, or Toyota vehicles, Honda said.
Ford and Toyota will also pay $500 per year toward the purchase of the new hybrid.
Hyundai said it plans to sell up to 3.6 million hybrid vehicles this year, a record for hybrid cars.
The new deals will help Honda and the automakers, which have been struggling to sell more hybrid vehicles in the U.S., grow their share of the market.
Ford has been pushing the hybrid as a way to compete with hybrids from other automakers.