backtop


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



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

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.


"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki