Ford Raise UK Car Prices
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The prices of Ford cars will be rising after the end of June by on average 4%. Ford have currently rose their prices 3 times now this year. Ford rose their prices back in February by 4.7%, and then again during April by 3.75%.
Ford admitted that it “may seem counter-intuitive” to raise prices during a recession, but due to the current weakness of the pound against the Euro, they said “there is no choice if we are to maintain a viable business”.
Ford explained that the pound against the euro had been stable for 10 years at the end of 2007 at 1.43 euros, however, due to the recession, over the past 2 years, the pound has dropped to 1.16 euros.
Because the majority of Fords cars for the UK are made in Germany and Spain, they had no other option to raise prices. Before Ford rose their prices, they had been absorbing the average £3,500 that they were losing on every car sale. This has now stopped as if they wish to stay stable, they cannot keep losing money, particuarly during a recession.
The car scrappage scheme will also be affected by the price hikes, the £2000 grant will have a huge chunk taken out by the increase in Ford prices. With the prices of all Fords cars, including the Ka, Fiesta and Focus, rising by around £600 - £750. The car scrappage scheme will be having less of an affect on the price now.
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. This is some slight good news for leasing customers, however, new car buyers will feel the full effect of the price rises.
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