Posts Tagged ‘ford lease’
Ford Forced to Raise Car Prices by Another 4%
The prices of Ford cars will be rising after the end of June by on average 4%. This is the third time since 2007 that they have rose their car prices. Ford rose their prices back in February by 4.7%, Ford then rose prices again in April by 3.75%.
Ford stated that it does sound strange to raise car prices during a recession, but they also said that they had no choice because of the weak pound, “there is no choice if we are to maintain a viable business”.
Ford said that at the end of 2007 the pound had been stable against the euro for 10 years at 1.43 euros, however, due to the recession, over the past 2 years, the pound has dropped to 1.16 euros.
Because Ford build their UK cars in Spain and Germany, Euro countries, they had no choice but to increase prices. Before these price rises, Ford had been absorbing the losses which end up around £3,500 for every vehicle sold, however, they cannot sustain this if they plan to keep a stable business, especially during the recession.
Not only are these price hikes a problem during the recession but they also have an affect on the governments car scrappage scheme because these price rises will take a huge chunk out of the money that would have been saved. With prices of a Ford Fiesta, Focus and Ka increasing by around £600. New car buyers won’t be benefitting as much when buying a new Ford under the car scrappage scheme.
Although this is all bad news for new car buyers, people choosing car leasing over buying won’t see the price rises straight away. Even if you are not currently on a Ford lease, but you are looking, the leasing companies won’t pass on the price rises until they buy new vehicles, which, during the recession, won’t happen straight away. So this is some good news for the leasing customers, not so much for new car buyers.