Aug
3
Ford Raises UK Prices
Filed Under General
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 once again in April by 3.75%.
Ford admitted that is was strange to raise prices during a recession, however, they said “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, over the past 2 years during the recession, the pound has fallen to 1.16 euros.
Because most of cars that Ford sell in the UK are built in Spain and Germany, they had no option other than to increase the price of their cars. Before these prices rises occurred, Ford had to absorb the losses from the weak pound, however, they cannot continue doing this during a recession if they wish to be a stable business.
These price rises will not just be a problem during the recession, they will also have a negative effect on the car scrappage scheme which will seem less of a benefit when buying a new car. With prices of a Ford Fiesta, Focus and Ka increasing by around £600. When buying a new Ford, customers will feel less effect of the car scrappage scheme.
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.