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Ford cuts 2010 prices by up to 15%

Fri, 26 Mar 2010

Ford has cut prices of its big cars by up to 15%

By Tim Pollard

Motor Industry

26 March 2010 12:00

Ford today announced sweeping price cuts across its large car range – lopping up to 15% off the price of models such as the Mondeo, S-Max and Galaxy. The news comes after Ford raised price four times in the past year.

The Blue Oval has drawn criticism in the past for artificially high list prices, which have penalised business buyers. In the UK, company car tax is calculated by the P11D price which is based on the list price, not the transaction price, and 70% of large Fords are bought by fleets.

Private buyers have historically scored large discounts on big Fords, as did corporate buyers – making many question the need for higher list prices. Today Ford acted.

So prices are down by 15% across the board?

Not quite. Ford is making permanent the seasonal special offers on its large cars only: the Mondeo, S-Max and Galaxy. Savings reach up to 15%, with typical savings shown below:

Ford Mondeo Zetec Was £20,836, now £18,445
Ford S-MAX Zetec Was £22,677, now £20,645
Ford Galaxy Zetec Was £26,355, now £22,945

There is no guarantee of lower prices on smaller models yet, but Ford is introducing something called Blue Tag pricing. It's akin to the Daewoo no-haggle price promise, and spokesmen talk about transparent pricing. Less need to haggle, just lower prices. Apparently.

We'll be keeping tabs on this to see if Ford really do stop discounting. Stay tuned for the results!

By Tim Pollard