New Ford incentive program...........

[Ktulu]

link

By DEE-ANN DURBIN, AP Auto Writer



DETROIT - Ford Motor Co. became the second of the Big Three automakers to jump back into the discount game with a program that knocks thousands of dollars off the price of some vehicles.

Ford's announcement Wednesday came on the same day that the company recalled about 220,000 vehicles from the 2005 model year amid concerns that a battery cable was rubbing against the vehicle frame, potentially causing fires, and that a fuel tank strap could separate after logging tens of thousands of miles. Shares of Ford fell to a new 52-week low after the news.

The announcement also comes two days after General Motors Corp. announced its "Red Tag" discount, which allows buyers to pay a fixed maximum price advertised on the Internet and on red tags at dealerships. Both programs end Jan. 3.

Ford's plan has a similar no-haggle aspect. Under the "Keep It Simple Plan," customers are given one consistent, maximum price that will be printed on vehicles' window stickers. The sticker will show how that price differs from the manufacturer's suggested retail price. It also will add any cash incentives that are being offered on the vehicle.

For example, Ford said, the MSRP for the 2006 Ford Escape sport utility vehicle is $20,685. Ford's "Simple Plan" price is $19,794. Ford also is offering $2,500 cash back on the Escape, so the maximum price any buyer should pay is listed as $17,294.

Similarly, the maximum price for the 2006 Lincoln Navigator SUV is $46,747, down from a suggested retail price of $53,175.

Most 2005 and 2006 Ford, Lincoln and Mercury vehicles are included in the program, with the exception of Ford's new trio of sedans ? the Ford Fusion, Lincoln Zephyr and Mercury Milan ? the Ford Mustang and the Ford GT.

Ford also is including hybrid versions of the Ford Escape and Mercury Mariner, the first time those vehicles have been included in an incentive program. The Escape Hybrid will sell for $26,104, which is $1,411 less than its suggested retail price.

After their employee discounts this summer, GM and Ford said they wanted to move away from incentives, which cost a lot and can cheapen brands. Instead, they lowered prices and focused more on the value of their vehicles. But consumers didn't respond and sales sank in October.

The recalls announced Wednesday involved more than 98,000 Ford Crown Victoria, Lincoln Town Car and Mercury Grand Marquis sedans. A separate recall caused by the separation of fuel tank straps involves more than 123,000 Ford Freestyle crossover vehicles, Ford Five Hundred sedans and Mercury Montego vehicles.

 

[ElFenix]

what's funny about sticker prices that are more in line with what people actually pay?

 

[dxkj]

Originally posted by: ElFenix
what's funny about sticker prices that are more in line with what people actually pay?

Not sure, especially when Ive never paid over invoice for a new car (usually a few k below)

Those no haggle prices would just be screwing me over 🙁

 

[sniperruff]

Originally posted by: ElFenix
what's funny about sticker prices that are more in line with what people actually pay?

that ford actually calls it a "discount"

 

[FeuerFrei]

Why can't they just bite the bullet and suck it up for a few months of low sales?

They (Ford & GM) must not be serious about weaning buyers off big discounts.

 

[Staples]

What is funny is that the OP is a fanboy of some other brand.

 

[darkswordsman17]

Originally posted by: dxkj

Originally posted by: ElFenix
what's funny about sticker prices that are more in line with what people actually pay?

Not sure, especially when Ive never paid over invoice for a new car (usually a few k below)

Those no haggle prices would just be screwing me over 🙁

For most people, myself included, they don't like to haggle, so it makes it better for them. It does suck for the people who are good negotiators though.

 

[Ktulu]

Originally posted by: Staples
What is funny is that the OP is a fanboy of some other brand.

Actually i drive a Silverado and my family owns a couple Fords.

I think its funny because GM and Ford are in trouble yet they insist on offering these discount programs which are doing more harm then good.

 

[ElFenix]

Originally posted by: FeuerFrei
Why can't they just bite the bullet and suck it up for a few months of low sales?

They (Ford & GM) must not be serious about weaning buyers off big discounts.

why does it matter? if they jack up the MSRP to cover the $3000 rebate then its a zero sum game anyway.

 

[ElFenix]

Originally posted by: Ktulu
Actually i drive a Silverado and my family owns a couple Fords.

I think its funny because GM and Ford are in trouble yet they insist on offering these discount programs which are doing more harm then good.

unfortunately for ford and gm they have contracts that they have to pay regardless of if the line is operating or not. so if the line is operating, and they're getting more than the variable cost of the line operating, then they're paying off at least some of those contracts that they have to pay anyway.

 

[MikeMike]

Originally posted by: Ktulu

Originally posted by: Staples
What is funny is that the OP is a fanboy of some other brand.

Actually i drive a Silverado and my family owns a couple Fords.

I think its funny because GM and Ford are in trouble yet they insist on offering these discount programs which are doing more harm then good.

what you havent noticed however is that the avg price paid per vehicle is slowly rising

E.D. was higher than avg price b4 hand.
R.T. is higher than E.D.

 

[redgtxdi]

Sometimes I wonder if they aren't ALL just in for a huuuuuge hit!!!!

I heard a brief this morning how the average income in California is going to go into a DECLINE over the next few-several years!!! WTF?? Yup!!!

May all be fodder, but I'll say this. I've got a '95 and a couple of great '98 vehicles that aren't going anywhere, anytime soon. They're all still rock solid and can probably go another 200 to 300,000 miles Eeeeaaasily before even considering anything major like an engine or transmission.

On top of this, the big 3 have to keep an eye out for Hyunda. With Hyundai & Kia merged and dirt-cheap labor, we could be seein' regular $12K cars and $20K SUV's. And once they're makin' 'em as nice as everybody else.....(if not, already)......then why spend F'n $46, $52 or anything within 20% below that when you can go buy a F'n Santa Fe or Tucson for $20-$25????

I dunno.............I'm gonna play the pessimist on this one. I'm thinkin' trouble lies ahead for American automakers!!!

(i.e. "Hey Ford...........don't discontinue the focus anytime soon!! It might be the only damn car you're sellin' here in a couple years!!......LOL!!!)