Ford Credit Finance Receivables Ford Credit Leases (Policies)

3 Months Ended

Mar. 31, 2019

Ford Credit Leases [Abstract]

Lessor, Leases [Policy Text Block]

Ford Credit’s finance leases are comprised of sales-type and direct financing leases. Ford Credit offers finance leases to individuals, leasing companies, government entities, daily rental companies, and fleet customers. These financings include primarily lease plans for terms of 24 to 60 months.

Net investment in operating leases consist primarily of lease contracts for vehicles with individuals, daily rental

companies, government entities, and fleet customers. Assets subject to operating leases are depreciated using the

straight-line method over the term of the lease to reduce the asset to its estimated residual value. Estimated residual

values are based on assumptions for used vehicle prices at lease termination and the number of vehicles that are

expected to be returned