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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 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.


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