tinyurl.com/yglx3cm
After rises of up to 30% on individual models Ford realise this is hiting business users especially hard. They are to announce a pricing restructure next week.
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Didn't Vauxhall just do this too?
I've been waiting for this to happen in the market as scrappage ended as we have a 6yr old car that needs changing and it's gutting to be offered the same as scrappage for it.
However was thinking of getting a Polo or maybe even a Golf but apparently they're on tremendous lead-times. A Fiesta might be OK though.
Last edited by: Bill Payer on Fri 19 Mar 10 at 16:03
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In the above link it says Vauxhall have taken up to 3.5k off.
I can't imagine why Ford put prices up as much as they did.
I posted in another thread that earlier this week that I looked at the Ford website for a Mondeo estate. It came in at 32k for a 2.2TD in Titanium spec. with some options.
After three years I would be looking at what ? 5k trade-in. No sane person would look at such a car and 32k for a business user is putting them in among some exec class cars.
The Ford may well be a very, very good car but the figures just do not add up.
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Just done a quote for a bog standard Mondeo 2.2d Titanium Estate which comes in at £26288. My allowance would get be £14 a month back per month (I get about £40 for the Mazda6 hatchback) but BIK is higher due to list price.
I could get an Audi A5 for less per month though.
Last edited by: rtj70 on Fri 19 Mar 10 at 16:43
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The article mentions 'transaction costs' may not vary that much, which I take to mean Ford's retail prices will bear a little more resemblance to the price most customers pay.
For example, the website says Focus from £17,000 or so, but a few more clicks brings you to a Zetec S at £14,000, including a 'customer saving' of more than £3,000, and including some electronic goodies.
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I've posted on this very subject before in a previous (forum) life.
When we were looking for a new car for SWMBO in Dec 2009 even with a £4500 discount a Golf 1.4TSi SE came in within £1K of a 1.8 Titanium and at 3 years old will be worth significantly more. So I whinged on the old HJ forum and HJ himself posted that it was the exchange rate (which I understand) and I seem to recall responding that I couldn't equate the perceived value of a Ford against their new pricing.
I'm not surprised it's costing sales, the leasing and rental companies that buy most Fords won't pay anything like the P11D list price either but the low residuals take their toll.
I'm a company car driver and the lease on my BMW 330D touring for 2 years (let alone 4) is less than a 2.2D Mondeo over 4, the BMW has risen in list price by about £1500 in the past year - that's about 4% and BMW will give you £1,750 of options at the moment which don't count for P11D value and more than address the balance.
Net of this is that the Ford needs to be (say) 2/3rds the monthly cost (so BIK plus lease) for me (and perhaps others) to consider one when you can get BMWs, Audis, Mercs or VWs for less money. Hondas seem to suffer rather from high lease costs too at the moment.
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I'm glad I opted out of the company car scheme and took the cash option. That way, I can pick up the aforementioned Mondeo 2.2 TDCi Estate from a certain internet broker for £18676 and expect 6 years decent use out of it. Discuss??
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As you say, for a private buyer you wouldn't touch one at list price but from an online broker the price makes more sense making depreciation about two-hundred pounds per month over the six years, maybe slightly more.
The list price to a company user make it a no go as rtj points out.
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>> I'm glad I opted out of the company car scheme and took the cash option.
>> That way I can pick up the aforementioned Mondeo 2.2 TDCi Estate from a certain
>> internet broker for £18676 and expect 6 years decent use out of it. Discuss??
>>
I did something similar when I opted out for a number of years back in 2003 and went to Ford Direct and bought a 6 month old Mondeo estate, it was an excellent car costing only service items, Ford Direct were excellent too. At the end of 4 years I realised that for around £100 a month more (in net cost) I could get a company Audi (back then) and have it changed every 2 years into the bargain and since I like changing my car often I opted back into the company scheme.
However I suspect that some of the fundamentals have changed, my Ford Direct Mondy had lost more than 1/3rd of its value in 6 months (£19k to £12K) back then whereas now Ford Direct want nearer to 75% or 80% of list but the thing will still be worth peanuts at 4 years old. Therefore the 'equation' only works if you're prepared to keep the thing for a long time (which I'm not).
I really like Ford cars, my Mondy taught me that they are every bit as good or even better than 'quality makes', but I'd contend that their list prices are now simply too high for their perceived value, and that's a pity.
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"Ford plans ............ by introducing models with new trim/equipment levels at significantly lower prices than current specifications."
I wonder if that means lower specifications, with more items being optional extras.
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Isn't this what people want ?
How often have we read people saying cars are too complicated have too much complex kit which they don't want or need ?
Here they are. If you want ACC you pay and probably with some environmental tax added to compensate for the increased fuel usage.
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>> Isn't this what people want ?
>>
I'd contend 'sort of', I'm not sure that there is a demand from company drivers for overly basic spec cars ?
The practice of loading cars with equipment but offering few options seems most extreme with makes such as Honda, the opposite being true of Audi / BMW who have a long list of expensive options which distort the depreciation profile too.
In truth this suits the company car driver as the P11D value doesn't get inflated and you're not hit by the leasing companies' (understandable) practice of completely depreciating virtually all options over the period of the lease (i.e. you get no residual value and pay for them in full in your lease cost).
Personally I've chosen not to get a Honda Accord in the past because I didn't want leather trim but did want the ACC, cruise, auto wipers that went exclusively with the EX spec (of the time), others will no doubt have their own preferences. For me I wouldn't consider anything without a full complement of airbags (sorry Skoda), ESP (Skoda again), AirCon - preferably ACC (sorry VW) and cruise control.
The environmental argument I'd accept, although since I've one eye on BIK tax I'm probably making a more environmentally friendly choice than I would were I to 'opt out'., at one time Audi used to offer varied CO2 figures for their options e.g. putting 18" wheels on etc. Why single out ACC ? Driving with an open window or sunroof is just as bad and perhaps you are not required to travel long distances on hot days in business attire ? It could also be argued that use of AC (or a sunroof of course) is already highly taxed at the fuel pump ?
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>> Why single out ACC ? Driving with an open window or sunroof
>> is just as bad and perhaps you are not required to travel long distances on
>> hot days in business attire ? It could also be argued that use of AC
>> (or a sunroof of course) is already highly taxed at the fuel pump ?
>>
I used ACC as an example, you are right though, bigger wheels & fatter tyres could be another example of options affecting CO2.
Arguing whichever option which impacts fuel consumption is already highly taxed at the fuel pump would fall on deaf ears with any Government in power as we have seen in the past. They need all the cash they can get at the moment by fair means or foul.
L'escargot you would still be able to get the options you wanted, everyone will start at the same basic build point then add what they want and leave off what they don't. As production lines are highly automated and most things fitted as complete sub-assemblies it would not be very difficult to do. The Ford Focus RS rolls down the same lines as standard models with different body panels and specification(s).
What it does mean though is a bigger compromise for the used car buyer as you will be totally at the hands of first owners choice instead of being able to chose a higher level specification as your starting point as you do at the moment.
If you want a very specific spec. for your car then you will have to buy new, no manufacturer will lose sleep over that.
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>> >> I wonder if that means lower specifications, with more items being optional extras.
>> Isn't this what people want ?
It's certainly not what I want. I want my car to provide enjoyable motoring, not just utility transport at a basic level. I bought my 2003 2 litre petrol Focus Ghia because at the time it was as close to what I wanted as I could get. I bought it secondhand and was pleased it came with optional extras of full size spare and reversing sensors. If I'd bought it brand new I would also have specified a sunroof as an optional extra. But I'd much sooner my desired features came as standard rather than as optional extras. Items bought as optional extras are bound to cost more than if they had been included in the standard specification.
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Flyer landed in the post today from Ford dealer.
Focus 1.6 Zetec, 10 plate, including air con and Quickclear windscreen, £12,988.
Looks like it might be a few hundred quid cheaper on Ford's finance.
I think that's a reasonable price for a new petrol family hatchback.
Wouldn't have thought a similar spec Cee'd, Astra or Golf would be any less.
Prefer something a bit bigger with a bit more poke?
Ford Mondeo 2.0 Zetec TDCi, £17,595.
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"Ford plans to recapture buyers and market share here in the UK by introducing models with new trim/equipment levels at significantly lower prices than current specifications.
The move, which just-auto has learned will be officially announced on Friday 26 March, avoids Ford having to label the strategy as a price cut."
Well they got the date right - but details wrong. Price cuts to Mondeo, S-Max and Galaxy announced today. Base Mondeo now cheaper than a Focus
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Thinking of a new Ford...hold on for a week - Bill Payer
