Not surprised - following Ford's numerous & unrealistic price hikes during 2009. The public aren't stupid. Everyone's known for years that the 'showroom price' means nothing in reality & after 'haggling' with the salesman - big discounts can be had. This - of course - makes the salesman look great because he's 'given' you a very generous discount on the new car. In reality of course - he's done nothing of the sort. At least Ford are now going to remove all this nonsense by reducing the cost of their vehicles & thereby giving the dealerships little or no room for haggling. About time too.

http://www.autocar.co.uk/News/NewsArticle/AllCars/250732/

About time too! Although it's not great for those of us who have already bought our cars. I can hear the sound of used prices tumbling.

About time too! Although it's not great for those of us who have already bought our cars. I can hear the sound of used prices tumbling.

Used prices tend to take account of the actual price paid originally (though at the moment dealers are advertising higher prices for used than new ) which is one reason why Fords tend to suffer high first-year depreciation compared to some other brands. So I doubt the used prices will be hit that much, but the % depreciation figures should improve (or maybe this is just wishful thinking ).

About time too! Although it's not great for those of us who have already bought our cars. I can hear the sound of used prices tumbling.

Why??

Dave

It's called blue tag priceing and has been on the Mondeo galaxy and s-max for afew months now. Helps bring people in and has increased residual values of all 3 of these cars by at least 1k. Only problem is most people still expect large discounts and we can't give them now. Will take a while for people to fully understand fords priceing after many years of high OTR prices and high discounts

Sounds good to me, I thought I had got a good deal on my car until I read some of the deals other folk got.

Why??

Considering list price only (which I assume quite a few people will) a new Ford will become a lot more accessible to people who would previously have only considered buying used. For instance seeing a list of 16k for a Fiesta may automatically make someone choose used, regardless of the discount which they potentially could make, whereas if it was 13k new and a nearly new example was 11.5 buyers may think twice.

A buyer probably doesn't really consider the discount that the initial owner recieved from list price when buying used, a car may have had a list of 16+k before discount, but if it was now reduced to 14k a higher used price looks less reasonable from the new buyers perspective.

This is the way that I'd look at it anyway - I'm just hoping that residuals improve to counterbalance the price drop.