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$10,750 discount includes $7,500 federal tax credit

Electric vehicles aren't exactly selling in droves for automakers around the world. Many of today’s highly efficient gasoline-engine vehicles are offering such high fuel efficiency ratings that it makes little sense to pay the extra money for hybrids or EV for many consumers (that is unless you live in California).

Ford is trying to get customers to lease its Focus EV electric vehicle and is offering significant discounts to land buyers. Ford has announced that it has dropped the base price of the Focus EV by $2,000 on cash purchases. Ford is also offering as much is $10,750 off the cost of a three-year lease.

Ford also plans to offer 1.9% financing on the Focus EV if purchased through Ford Motor Credit. The Focus EV didn't have a good 2012 with Ford selling only 685 of 1,627 vehicles it built. That sales rate made the Focus EV one of the worst performers in the industry.

Ford isn't alone in having to discount its electric vehicles to get consumers more interested; Nissan also recently dropped the price of its 2013 Leaf by 18%. The Leaf now starts at $28,800 and Nissan is offering new incentives to help boost sales.

"We certainly are not in a situation where we have to completely discount but we do have to respond to competitive pressures," Ford spokesman Wes Sherwood said. "We're not anywhere close where Nissan has gone with the Leaf."

The Ford lease offer is on Red Carpet leases if buyers take retail delivery by April 1. If the buyer meets those conditions, they will receive $10,750 off (a figure which includes the $7,500 federal tax credit).
 
The MSRP for the Focus EV base model is $39,995, while the new price for cash purchases is $37,995.

Source: Detroit News



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RE: high sticker
By Flunk on 1/25/2013 9:38:18 AM , Rating: 2
Completely right there.

I hear that there is a company that makes a car that's very very similar to this one that retails for less than half the price except it never needs to be charged to long periods of time. It's much more convienient. Who is it who makes that again... Oh right, Ford. They're their biggest competition with this.

People are not going to spend twice as much on a less useful vehicle just to seem "green". I say seem because if the power is from burning coal electric cars are far worse for the environment than gasolene cars. It's just too much cash, if it were a small premium I could see some people choosing this vehicle but as is, it's a silly choice. Even the leaf is $10,000 less


RE: high sticker
By mcnabney on 1/25/2013 10:10:29 AM , Rating: 2
The damn batteries don't cost that much!

Once you strip out the intake, engine, exhaust, and fuel systems the remaining shell of the Focus probably only costs Ford $10k. Even though the battery is expensive - the battery, motors, and slightly different computer doesn't cost anywhere near the the ballpark of $30k to justify a $40k MSRP.

The Focus EV has a 23kWh battery which costs about $15k, but the motors and controller will only add another couple thousand dollars. That leaves well over $10k in additional markup. It looks like they are giving some of that back. Ford can probably sell these for $30k - they just kept the price high due to the $7500 tax incentive.


RE: high sticker
By Manch on 1/25/2013 10:36:29 AM , Rating: 2
R&D is baked into that price as well.

Where did you get the prices for the components? I'm just asking bc if they were that cheap to manufacture then Ford would be stupid to mark up a niche vehicle like that considering the slow sales it's competitors have had as well. I think they should do like google and sell this thing at cost. That would drive customers to seriously consider it, and maybe even create a discernible market share for this class of car. Then as you grow your market share you can start to bake in a profit.

Overall though, these types of vehicles simply cannot justify their price even with the tax breaks. Just doesn't make any sense to anybody except for Mint.


RE: high sticker
By Motoman on 1/25/2013 11:03:40 AM , Rating: 1
quote:
Where did you get the prices for the components?


He's making them up.

Gee, yet another EV and/or hybrid that isn't selling well. I wonder why? Could it be that essentially no one actually wants these things? Could it be that a fuel-efficient ICE car is an infinitely better choice?

Yes, and yes.

It would be nice if the industry (and government) would just drop this charade already and start producing, I don't know, maybe some of the hyper-efficient little diesels like they have elsewhere in the world. For people who worry about efficiency. Personally, I can't really afford to (nor can anyone else I know) - either I have a big 4-door one-ton 4x4 turbodiesel pickup, or I can't work or play.


RE: high sticker
By RufusM on 1/25/2013 11:47:12 AM , Rating: 4
This is just the market telling auto makers: "We don't want that product at that price."

The price will adjust as supply and demand dictate.

I just wish the government would keep its subsidy out of the picture and let the products compete on their merits. Government incentives are designed to modify the markets behavior but I just can't see the real societal benefits in this case.


RE: high sticker
By Motoman on 1/25/2013 12:08:02 PM , Rating: 2
Right now, for the vast majority of people, such vehicles don't make sense at any price. Certainly not at prices that have them compete with conventional compact cars and small sedans.

I don't honestly know what, say, a typical Ford Escort-type of car sells for. Let's say it's $15k. At that price, a hybrid would probably have to be $10k to get truly average people (i.e. not the minority hybrid/EV fanatics) to consider it as an alternative. And an EV, with all the pain-in-the ass it is? Probably $5k.

Which of course are ridiculously tiny numbers for which those cars could never be sold. Ergo...give up. Stop trying to shove the stupid things down the public's throat. There's no case in which a conventional, highly fuel-efficient small ICE car isn't a vastly better choice.


RE: high sticker
By wordsworm on 1/25/13, Rating: 0
RE: high sticker
By JediJeb on 1/26/2013 9:20:50 AM , Rating: 2
quote:
Don't you get tired of the smell of gasoline burning cars, or the noise that they make?


I haven't noticed an odor from a gasoline vehicle since the days of carburetors unless they are burning stale fuel or very badly out of tune. As far as the noise, most compact cars you can barely tell if they are running when sitting idle and not much louder when at speed. I live next to a busy highway and if I sit on the porch in the evening I can hear the tire noise from the passing vehicles far more than I hear the engine, so unless we make them maglev the EV are going to be just as loud.


RE: high sticker
By Spuke on 1/26/2013 2:51:51 PM , Rating: 2
Yep. Passing EV's make just as much noise as passing gas cars. The noise you hear is the tires not the engines.


RE: high sticker
By wordsworm on 1/27/2013 3:36:52 PM , Rating: 2
I honestly cannot tell if you're being sarcastic or not.

In all seriousness, though, I am holding my breath for VW's latest generation XL1 which promises 250mpg and is expected to be sold in 2014. That kind of efficiency I can tolerate for general transportation purposes. I could drive from Vancouver to Halifax for $50 worth of gas or do a real roundabout tour of the US/Canada for maybe $300. That would be just fantastic and it has me somewhat excited about cars.


RE: high sticker
By maugrimtr on 1/28/2013 10:57:43 AM , Rating: 2
What the Free Market thinkers are failing to admit is that these cars are selling. Yes, supply is outstripping demand. That's a problem with the company's and their farcical marketing departments. The actual cars, once made, are SELLING which means there is DEMAND. If the manufacturers match supply to demand, they are now making PROFIT. If they can reduce costs and price, they can increase demand.

So EVs are not a failure at all. The free market has spoken - people are buying them at their early outrageous prices.

The problem is that that market is too premature, the technology remains extremely expensive, and the government's tax credit is basically a stop gap subsidy for the car companies who need to drive down costs (while retaining an extra 7.5k margin buffer they no longer have to fund). In other words, the Free Market is contorted. It has spoken - but with a wee bit of encouragement at our expense.


RE: high sticker
By Manch on 1/25/2013 12:23:26 PM , Rating: 2
Yeah, I have a highly modded 06 mustang and fuel efficiency isn't my concern with that car. Although I do get about 25mpg avg since the last mods I put on. I was worried that something was wrong but everything has checked out so far. Couple more months and Ill be able to pull it out of the garage for more "testing"

For work, I either ride my motorcycle when its warm, or I drive my old station wagon. Since it cost me only 1K and it gets decent mileage. I never understood the absurdity of buying a brand new car to save gas.


RE: high sticker
By Spuke on 1/25/2013 12:51:35 PM , Rating: 2
quote:
I never understood the absurdity of buying a brand new car to save gas.
IMO, it only makes sense if you're in the market for a NEW car. Some people will NOT buy a used car no matter how low the mileage or great the condition. For some it's a status thing and others it's a distrust thing. I see your point wholeheartedly. If I were that interested in saving money (cause higher fuel economy saves money), I'd get a used fuel efficient car. Yes, there are those that are trying to make a statement with their car purchase but I lump them in with the status folks because that's what that is.


RE: high sticker
By Keeir on 1/25/2013 2:13:59 PM , Rating: 2
I think that this is missing a critical component.

When you choose to get rid of a car.

For example, I tend to drive alot. Upto 25,000 miles a year.

If I get rid of a car when it has ~200,000 miles (which is what I do), The difference between a "new" car and an "used" car that starts at a 50,000 miles is not significant

A4 -> New .18 dollars/mile capital, used .17 dollars/mile capital
CR-V -> New .137 dollars/mile capital, used .133 dollars/mile captial

This small difference in cost per mile is nearly offset by the expected increased repair costs per miles such that if look at the "same" car, if the new car gets 5% better MPG than the 50,000 mile used car, then the new car would actually be cheaper!

However, if your the type of person who gets rid of a car after owning it for 5-6 years, and you don't drive very much, then a used car is significantly cheaper.

(Just for reference, I even compared a 2013 A4 to a 2007 A4 with 100,000 miles using gas, insurance, financing, etc. Expected cost per miles for the 2013 A4 is around .50 cents per mile for the first 200,000. For the 2007 A4, is .49 cents per mile for the first 100,000 of ownership.)

This probably puts me in a minority, because I do buy new cars and keep the -same- car for 8-12 years. Fuel efficieny differences makes a big deal if you plan on keeping your cars for 10 years/200,000 miles


RE: high sticker
By JediJeb on 1/26/2013 9:32:03 AM , Rating: 2
I guess I am in the same category since I have owned my vehicle 16 years and put 235k miles on it so far. In that time I have spent about $1000 in repairs and the purchase price was $16,000. (It was a used 96 F150 with 18k miles)

I drive about 10k miles per year so I doubt I will ever buy a new vehicle. When gas first went to $4 per gallon I did some figuring and not counting the higher insurance of a new vehicle if I go from the current 18mpg to 36mpg I have to buy a vehicle with that fuel mileage that only has a payment of $100/month to pay for it with the saving in fuel cost. There are not many options when looking for a vehicle that gets 36mpg+ with monthly payments of no more than $100.

Now when my current vehicle dies(I am shooting for at least 300k miles on it) then I will have to consider what I will spend on a new one, I just hope there is something out there worth purchasing that will last as long and be as trouble free as this one has been.


RE: high sticker
By Spuke on 1/26/2013 3:24:21 PM , Rating: 2
quote:
I think that this is missing a critical component.
Nah, didn't miss anything. I'm talking about buying an EV on the basis of saving fuel (which I said in my post). There are people that will spend $40k on an EV thinking they just saved a chunk of money and they really haven't. A $10k used Civic would be FAR cheaper even if you threw in maintenance costs, emissions testing costs, repairs etc. If you want to really save money, spend less.

That said, we just bought a new car (leased actually). The new car costs less to own and operate than our 06 diesel pickup but a used car would've cost even less to own. The main reason for buying new is my wife won't go much past 120k miles on a daily driver. I will say that it sure is nice only putting 1/2 tank of diesel in once a month in the truck versus a full tank once a week (we don't really have to do that). Also, the maintenance bill on the truck went from $171 a month to $28 a month.


RE: high sticker
By Reclaimer77 on 1/25/2013 3:35:30 PM , Rating: 2
Wrong. The manufacturing for EV components isn't anywhere nearly as cost effective as ICE ones. It's just the way manufacturing works, the higher the volume, the less per unit it costs to bring it to market.

Think SSD's when they first came out. Someone like you might say, why cost so much? It's just a shell with some flash chips and a controller, right!? Yes but until the manufacturing scales up to a certain level, it simply costs more to bring the devices to market. Especially ones competing with highly mature and entrenched technologies.

I agree that EV's are overpriced compared to ICE vehicles. But that's hardly because of automakers gouging. You're way off base there I'm afraid.


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