Ford Joins Competition in EV Price Reductions
It's Economics 101. Sell more widgets by lowering the price. In the case of electric cars, Ford is the latest car company to drop the price of its EV, but reducing the lease price of the Focus Electric by more than $10,000.
The details of Ford's new Red Carpet lease deal work out as follows:
- Focus Electric lessees can get a 36-month lease with 10,500 miles a year for $285 per month (nearly 20 percent below last year's Focus Electric lease price).
- $930 is due at signing. Or $249 per month with $2,138 due at signing.
- The incentives reduce the net price of the Focus Electric from $39,995 to $29,249.
Not interested in leasing? That's okay because Ford is offering incentives on purchases as well. Ford slashed the Focus Electric's base price by $2,000 for "cash" sales, and is offering finance incentives that include a $2,000 discount and zero-percent financing for 36, 48 or 60 months or 1.9 percent financing for 72 months. Ford now lists the Focus Electric with a "cash-only" MSRP of $37,995—$2,000 below the MSRP listed in 2012.
2013 could go down in EV history as the year that the market corrected itself in terms of electric car pricing. In 2012, Ford built 1,627 Focus Electrics, but only sold 685 of those vehicles last year, so there's ample supply available, if the pricing can be lowered to entice new customers.
We've seen similar actions taken by Nissan and Chevrolet in regards to discounting plug-in vehicles. Nissan's 2013 LEAF S (entry-level version that wasn't available in 2012) starts at $28,800, a full $6,400 less than the cheapest 2012 LEAF and leases start at $199 per month for 36 months. Likewise, lease rates for the Chevy Volt dropped from more than $300 per month in late 2010 to as low as $159 per month. The 2013 Smart Electric Drive starts at a compelling $25,000, before incentives, which means a net price well below $20,000.
Fire Sale at Coda Silicon Valley
Price reductions to move metal off the lot are a regular thing in the auto industry. In a way, the fact that EVs follow this pattern is one more indication of the normalizing of plug-in cars. But there's nothing normal at Coda, where all signs point to the company circling the drain.
Here's another indication that the clock is ticking: Coda Silicon Valley is advertised a price of only $24,995 on the electric Sedan. That's a discount of more than $14,000 and doesn't include the additional federal and state incentives of up to $10,000. Apparently, the dealership slashed 40 percent off the price of its remaining Coda Sedans in an effort to rid its lot of the last few (five, to be exact) electric sedans. That price cut might not prove to be enough, as any discerning buyer would be concerned about buying a product from a company that might not be in the car business for the full duration of a warranty.
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