Print 36 comment(s) - last by foxalopex.. on Jan 28 at 1:27 PM

$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 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
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.

"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay

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