Ford (yep - inc Fiesta) price rises yet again...

[Nightowl]

The continuing devaluation of the British pound against the Euro (more than 30 per cent since 2007) is to blame for Ford's decision to increase prices by an average of 2.7 per cent across most of its UK range from all orders received after November 30, 2009.

The automaker said that while smaller capacity engines and the Transit LCV are assembled in Britain, other vehicles and component parts are imported from the Euro zone, which translates into a significant cost penalty because of the drop in the value of the pound.

"To combat the continuing weakness of the £ against the Euro, Ford has reduced costs across its entire UK business, including personnel reductions in its central operation and across its dealer network", said Nigel Sharp, Ford of Britain managing director. "However, price increases are still required to maintain a viable business and to recover relative cost increases caused by the weakness of the £ over an extended period."

Ford said that prices will increase by £250-£500 on most popular passenger models such as the Ka, Fiesta, Focus, C-MAX, Kuga and Mondeo, rising to £600 on the Ford S-MAX and Galaxy.

For commercial vehicles, the Fiesta Van's price will increase by £400, the Transit Connect and Ranger by £500 and the Transit 1T model by £600.

Prices for the Ford Focus RS and the Transit 2T will remain the same.

[Alan1991]

The continuing devaluation of the British pound against the Euro (more than 30 per cent since 2007) is to blame for Ford's decision to increase prices by an average of 2.7 per cent across most of its UK range from all orders received after November 30, 2009.

The automaker said that while smaller capacity engines and the Transit LCV are assembled in Britain, other vehicles and component parts are imported from the Euro zone, which translates into a significant cost penalty because of the drop in the value of the pound.

"To combat the continuing weakness of the £ against the Euro, Ford has reduced costs across its entire UK business, including personnel reductions in its central operation and across its dealer network", said Nigel Sharp, Ford of Britain managing director. "However, price increases are still required to maintain a viable business and to recover relative cost increases caused by the weakness of the £ over an extended period."

Ford said that prices will increase by £250-£500 on most popular passenger models such as the Ka, Fiesta, Focus, C-MAX, Kuga and Mondeo, rising to £600 on the Ford S-MAX and Galaxy.

For commercial vehicles, the Fiesta Van's price will increase by £400, the Transit Connect and Ranger by £500 and the Transit 1T model by £600.

Prices for the Ford Focus RS and the Transit 2T will remain the same.

Its a bit crap that, they will probably suffer a decrease in demand. I dont see the point in buying brand new cars because you can get one like 3 months old for £2000 cheaper than buying it new would be. Also it means you are missing out on some of the depreciation. I do see why buying brand new appeals to people but dealers usually have a excellent selection of cars and are able to source you one with the spec, colour etc you want.

[FMC]

I usually buy new because

1. I can spec it the way i want

2. I can take comfort in the fact that nobody else has farted into my seat foam :P

3. I get a Ford employee family discount cos my brother works there, although i did buy one new Focus before he started there, and I had company cars for a few years in between, so the habit of having new cars has kind of stuck

[Nightowl]

Its a bit crap that, they will probably suffer a decrease in demand. I dont see the point in buying brand new cars because you can get one like 3 months old for £2000 cheaper than buying it new would be. Also it means you are missing out on some of the depreciation. I do see why buying brand new appeals to people but dealers usually have a excellent selection of cars and are able to source you one with the spec, colour etc you want.

The thing is; Ford aren't daft and realise that - in reality - there's never been a better time to buy a brand new car! As well as the popular scrappage scheme - second hand prices are holding their own - meaning that a new car bought today means depreciation on brand spanking new cars (in real terms) is not going to be anywhere near what it always historically has been. There is a shortage of new cars across Europe too - which will add to the value. At times like this - during a recession - all car dealers had to place orders a year ago for how many cars they wanted for 2009. Then scrappage schemes took off across most of Europe - which in turn meant a shortage of new cars (hence the long waits) for all those trading in their wreck for a shiney new car. The car plants haven't been able to keep up with many models. All this will (of course) mean that those of you with a nice new car will see a significant increase in its value whenever you come to trade it in. The normal 'huge' loss associated with buying a new car won't be the case in the modern world. You will still see a loss of course - but nowhere near what it used to be.

Having said all that - Ford are making the new Fiesta a very expensive car for many buyers now. The Fiesta was always a 'cheap' (as regards most trim levels) runabout which sold in their millions. The new Fiesta is in danger however of becoming too pricey for many - meaning potential customers will switch to cheaper manufacturers like Hyundai. Their sales are increasing massively for the i10, i20 and i30 etc.

[mick88]

I have a Mk6.5 which is due for changing in July and am considering a Mazda 2. Based on the same floorpan as the Fiesta but rarer and cheaper. Any one know what the main difference's are between the two, engine and suspension wise.

[Nightowl]

By the way; this is the 4th price increase from Ford this year!!!

:o

http://www.autocar.co.uk/News/NewsArticle/AllCars/245313/

[bILLOO]

4th!!! A guy on the other Fiesta forum was saying he bought his new 08' Titanium for just over 10k... probably about 13-14k today?

The dealer warned of this price rise but wasn't sure if he was just saying that to get a deal... turns out he was correct!

[Nightowl]

4th!!! A guy on the other Fiesta forum was saying he bought his new 08' Titanium for just over 10k... probably about 13-14k today?

The dealer warned of this price rise but wasn't sure if he was just saying that to get a deal... turns out he was correct!

If you read what others are saying on that Autocar forum above - you can read things like this:

I bought a new shape Fiesta 1.6TDCI Titanium this time last year. Book price then was £13,700 but spec the same car on their website now and it's £16,300 ! And that's before the latest price rise ! Local dealer has same age/mileage/etc as mine for £14,500 ! I'm planning to sell anyway, so on the face of it, I'll make a tidy profit. Lets see what the punters think...

[Flic]

I usually buy new because

2. I can take comfort in the fact that nobody else has farted into my seat foam :P

Haha! This is my all time favourite reason to buy new

[sherry_d]

I am kind of smiling coz I get my car next Monday the 30th, so it has saved us a little bit and also they were offering the ford deposit contribution until the 30th of Nov

However its sucks big time that Ford are having a 4th increasing...well they are operating way above the inflation rate. I guess they want to maximise before scrappage runs out

[Aitchess]

I am kind of smiling coz I get my car next Monday the 30th, so it has saved us a little bit and also they were offering the ford deposit contribution until the 30th of Nov

However its sucks big time that Ford are having a 4th increasing...well they are operating way above the inflation rate. I guess they want to maximise before scrappage runs out

Then 2.5% VAT will go back onto every car next year on 1 January, presumably, as well.

A month or so back, What Car did a group test of about 10 superminis because of the launch of the new VW Polo, and were quite outspoken about Ford's frequent price increases on the Fiesta, effectively suggesting they were milking the Fiesta's success as an excuse for it, because even the traditionally-expensive Polo was, in brand new model guise, effectively cheaper (mind you, I read the other day (in What Car again, I think) that they make the VW Polo in South Africa for the UK, so maybe they can dodge Euro related rises, which What Car didn't seem aware of at the time). They rated the Fiesta second, Polo first in the overall results primarily because of the Fiesta's price (though they mentioned that the possibility of big dealer discounts saved its bacon). Interestingly the Mazda 2 came last, as they criticised its suspension (at least in the version tested) as being too hard for British roads. There were a couple of odd statements in the test though - I remember them saying the Skoda Fabia is a ten year old model - well surely, that was the previous shape? (Don't know how much they changed it underneath, admittedly, but a totally new body is quite noticeable!).

[paulworthing]

Ford are making the new Fiesta a very expensive car for many buyers now. The Fiesta was always a 'cheap' (as regards most trim levels) runabout which sold in their millions. The new Fiesta is in danger however of becoming too pricey for many - meaning potential customers will switch to cheaper manufacturers like Hyundai. Their sales are increasing massively for the i10, i20 and i30 etc.

Just priced up mine - and without discount (i.e. off of the Ford configurator) mine is now over £17,000! Now I really do love my Goblin but SEVENTEEN GRAND FOR A FIESTA!

[FMC]

Just priced up mine - and without discount (i.e. off of the Ford configurator) mine is now over £17,000! Now I really do love my Goblin but SEVENTEEN GRAND FOR A FIESTA!

:o

That kind of puts these price increase into perspective :( That seems extraordinarily high tbh.

[Nipz]

Haha! This is my all time favourite reason to buy new

+1 lol

[Nipz]

:o

That kind of puts these price increase into perspective :( That seems extraordinarily high tbh.

You can get a 1 series for just a bit more than that!!!

[paulworthing]

:o

That kind of puts these price increase into perspective :( That seems extraordinarily high tbh.

Well price up a 3dr 1.6 Vi VCT petrol with the X pack, dress up pack, USB port and in that best colour of all, squeeze green and thats what you get - and as you can see, there are other things I could have added so could have gone over £18K if I had tried harder I bet . . .

I guess the difference betwen the Fiesta and my old MINI Convertible (£17.5K) is that I got ZERO discount on Tango as opposed to about £3K off of The Goblin!

[WelshAde]

glad my dealer is a nice guy and stuck to the price i was quoted when i originally ordered, handed the cheque over today by the way.

[Silent Shark]

I too was told the other week by my dealer that they would honour the original agreement, and not include the increase in Fiesta prices nor the increase in VAT should my car not arrive this year.

[amarokuk]

The car makers aren't stupid the goverment is handing out money for the scrappage scheme and the manufacturers have found a way to put that money in their pocket (with the price increases) instead of the ordinary punters. All manufacturers have had increases over the year to at least claw in the 1000pounds some a little more. Once scrappage ends and punters vanish just watch the prices come down as competition (such as it is in the car world) kicks back in.

[InstructorPiggy]

Coz of my wait, I got email today saying I will be getting my ordered 09a model Fiesta ZS built as the 09b model with no increase in price!

WoOOOOOooooOOOHOOOOOOOOO! :D

Think i got lucky tho!

Piggy :) :) :)