Third TIme Price Rise For Ford Due To Weak Pound
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Ford are getting ready to increase the prices of their cars by 4% on June 30th. Ford have currently rose their prices 3 times now this year. The hikes began in February with a rise of 4.7%, and once again in April by 3.75%.
Ford said that they know it may seem strange to raise prices particularly during a recession, however, to they also said that “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, more recently the the pound had fallen 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 Fords cars rising by around £600 to £750. The car scrappage scheme will not be felt as much buy customers when buying a new Ford.
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 news is pretty bad for new car buyers, however, it’s weakened slightly for leasing customers.
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