Pricing....

[stiggy]

Given the ramifications to GBP/USD post Brexit (as we're seeing), I wouldn't be surprised to see a further increase to the sticker price of the Mustang, especially as it's only made in the US.

Ford must be smarting at the exchange rate....

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[Manders Mustang]

Given the ramifications to GBP/USD post Brexit (as we're seeing), I wouldn't be surprised to see a further increase to the sticker price of the Mustang, especially as it's only made in the US.

Ford must be smarting at the exchange rate....

For now, it may hold, give it a few months it's gonna jump another grand aint it... :frusty:

 

[Jimboy2]

I'm surprised they haven't done it already. And at what point do ford UK "buy" a mustang from ford US? (Is that how it works?) will it be at VIN creation time?
Do you think they have a clause in the contract where they can cancel an existing order? Bet the price difference per car is quite noticeable considering the UK dealers only make about 500 quid per car

 

[Manders Mustang]

I'm surprised they haven't done it already. And at what point do ford UK "buy" a mustang from ford US? (Is that how it works?) will it be at VIN creation time?
Do you think they have a clause in the contract where they can cancel an existing order? Bet the price difference per car is quite noticeable considering the UK dealers only make about 500 quid per car

Pricing wise it's as follows

Dealer places order to ford uk, ford uk put them to ford usa
Ford usa build the car and assume liabilities of shipping etc
Once car arrives in Zeebrugge is when Ford UK buy it
once car arrives in southampton / at the dealership is when the dealership buy it off ford UK.

They make way more than £500 a car now - try £1500-2k, would shoot that they'll rise by 1-2.5k maximum. 35k base Ecobeast anyone?

 

[CaptainSensible]

Given the ramifications to GBP/USD post Brexit (as we're seeing), I wouldn't be surprised to see a further increase to the sticker price of the Mustang, especially as it's only made in the US.

Ford must be smarting at the exchange rate....

Exactly why I placed my order on Saturday!

 

[bennno]

would shoot that they'll rise by 1-2.5k maximum. 35k base Ecobeast anyone?

I am not sure I agree, a car that was being sold for £36,000 with a 1.6 £/$ fx rate would now need to be £44,300 to deliver the same level of $ income / profitability....suspect if the fx rate doesnt correct then there will be a big price change....

 

[stiggy]

I am not sure I agree, a car that was being sold for £36,000 with a 1.6 £/$ fx rate would now need to be £44,300 to deliver the same level of $ income / profitability....suspect if the fx rate doesnt correct then there will be a big price change....

...or they'll stop selling it here :eyebulge:

No margin, no business case - unlearn or not!

 

[kapiteinlangzaam]

...or they'll stop selling it here :eyebulge:

No margin, no business case - unlearn or not!

Doubtful.

Although dealer margin might not be large - the profit per unit on the cars are huge (as they are with just about every car).

Id be very surprised if the material/manufacturing costs of a Mustang GT PP are much more than about $8-10k USD. That doesnt count for design/research costs etc, but when you are selling more than 10k units per month, that falls rapidly.

We might see an adjustment in price in order to maintain the UK dealer-side profit, but Ford itself will still be raking it in on the EU and UK cars.



Info nugget - A Porsche Boxster and a 911 for example cost about the same to manufacture (€15k ish, from memory), but the price differential is huge because of the market positions. Porsche make a LOT of money :eyebulge:

A Vauxhall Vivaro van costs about £2k to manufacture (in the UK from memory) and they are sold from about £15k upwards.

And its the options where they can start to make massive profits. iPOD connection in your car sir (about £1 incremental cost) - £250 option! How about a £50 sat-nav for £2k. etc etc.

 

[tooley]

I'd also be certain that Ford will be hedging against currency fluctuations so that any impact from exchange rate fluctuations will be smoothed out. We won't see a massive price hike unless the $/£ rate stays as it is long term, even then I'd expect it to rise gradually because there won't be a single cut-off point from one rate to another

 

[Big_G]

Pricing wise it's as follows

Dealer places order to ford uk, ford uk put them to ford usa
Ford usa build the car and assume liabilities of shipping etc
Once car arrives in Zeebrugge is when Ford UK buy it
once car arrives in southampton / at the dealership is when the dealership buy it off ford UK.

They make way more than £500 a car now - try £1500-2k, would shoot that they'll rise by 1-2.5k maximum. 35k base Ecobeast anyone?

Dealer makes £750 per car, from the horses mouth so to speak.

 

[Manders Mustang]

Dealer makes £750 per car, from the horses mouth so to speak.

That's commision right? Wonder how much they make profit wise, I remember back when the first 1k rise came (Ie 28,995->29,995) they were making £500 per car, now it's gone up £1500 since, surely it's up to £1250 ish (Assuming the same scale)??? :lol:.

If anything costs should have gone >DOWN< as they can better predict how many slots on ships, cars being exported in bulk etcs and minimise costs that way....

Who knows ahy!

 

[bennno]

This is simple, if the £/$ fx rate remains 20% lower and demand for the Mustang is healthy elsewhere then the pricing will be increased significantly by Ford.

For sure they may have hedged currency fluctuations but that wont last forever, my bet is at least a 10% increase within 6 months.

Bennno

 

[Manders Mustang]

This is simple, if the £/$ fx rate remains 20% lower and demand for the Mustang is healthy elsewhere then the pricing will be increased significantly by Ford.

For sure they may have hedged currency fluctuations but that wont last forever, my bet is at least a 10% increase within 6 months.

Bennno

10% increase... so £3000 increase? If that was the case, we've all got very, very lucky buying our (BASE price) cars at 28,995/29,995/30,495/31,495 currently and if it were to jump to 34,495... Can only be good for residuals I guess

 

[Enoch]

I'm glad I got the final invoice for my wheels before the shit hit the fan

Even on my tyres, the price rose by over £10 per tyre the day after I ordered..

Won't be buying anything from the USA for a while

 

[SteveS]

I'm glad I got the final invoice for my wheels before the shit hit the fan

Even on my tyres, the price rose by over £10 per tyre the day after I ordered..

Won't be buying anything from the USA for a while

Which wheels are those...? ;)

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