Ford put prices up 3.75%

Chris_Hinds

Good for Ford, the idea that a recession means lower prices for everyone is such a falsehood I don't know where to begin. As has been mentioned beforehand, your costs of manufacture increase with a smaller volume because while your material costs remain similar (or the same) per unit, your overhead costs are split between far less units. The only reason to sell at a loss is if you need the cash badly, or if your stock will be devalued greatly.

Through brokers we already can pay very low prices for a new car (Focus 2.0TDCi Titanium is £20145 list and can be had on Drive The Deal for £14093). The idea that a car is more eligible for a large discount because it's a bigger purchase is naieve, after all few of us would go into a shop and try and barter for a new in box, never touched item. OK a stock unit, maybe, but the manufacturers have stuck the brakes on production much harder than the actual drop at the dealers e.g. Toyota have gone to a 4 day week (for most manufacturing facilities that's a 33% loss because we'd work 6 day weeks 24 hrs a day). Likewise Jaguar/LR have cancelled their weekend working, dropped to a 4 day week and cut out a load of people. In all probability production volumes have probably dropped 40% or more from where they were, while sales have slowed by a lesser figure, allowing manufacturers to burn off inventory.

You also have to think of it from Ford's point of view. You'd be unimpressed if you went into work and your boss asked you to do the same job as the day before, only today he wants to pay you 40% less for doing it. You might accept 5% or 10% for the survival of the company/your position, but at that kind of drop you'd probably feel your time was more valuable. Same applies to a company. The Hire companies will have to cycle their fleet at some point, because otherwise high miles will cause them to lose too much. The volume manufacturers might not sell two or three turns of stock to each hire company this year but they'll sell at least one load, which will make a sizeable reduction in their held units, while production will have been aligned to current demand.

Good luck to Ford and all the rest of the manufacturing industry in the UK and abroad.

Regards

Chris

Really2

Graham_Devon wrote: »

I reckon we will be seeing much more of what I remember growing up as a kid. Cars going round with different coloured panels etc. You hardly ever see that anymore, but remember seeing it loads when I was growing up.

Graham that was from carp steel in the 70's and 80's. 10 years and your car was dead then.

I doubt you will see that unless we go back to building in virtualy iron.

Graham_Devon

Really2 wrote: »

2nd hand are shooting up. I purchased my 2nd hand car in Jan. I could now sell it on one of those car buying sites for the same I paid for it.

To buy the same car now £13K (that up 3K in 3 months)

So it looks like car prices are adjusting in general, perhaps they just have been to cheap based on massive production outputs.

Perhaps cars will cost more untill we see mass production again.?

Your car depriciated 3k in less than a month? Blimey. What you buy yourself? One of those hideous prams on wheels in lime green you see in the middle lane on the motorways!?

Sorry, what you said just didnt make any sense. You bought for 13k and it's gone up 3k in 3 months, and now its worth the same!?

Really2

Graham_Devon wrote: »

Your car depriciated 3k in less than a month? Blimey. What you buy yourself? One of those hideous prams on wheels in lime green you see in the middle lane on the motorways!?

Sorry, what you said just didnt make any sense. You bought for 13k and it's gone up 3k in 3 months, and now its worth the same!?

No I purchased a car for £10K and it would now cost me £13K for the same car with the same mileage.

I dont like putting figures down so perhaps I should

Purchased for £9800 I could now sell it for the same I paid for it. (yo a car purchasing web site you would expect it be worth less considering it was purchased from a main dealer)

Or it would cost me £13K to replace.

Graham_Devon

Really2 wrote: »

No I purchased a car for £10K and it would now cost me £13K for the same car with the same mileage.

I dont like putting figures down so perhaps I should

Purchased for £9800 I could now sell it for the same I paid for it. (yo a car purchasing web site you would expect it be worth less considering it was purchased from a main dealer)

Or it would cost me £13K to replace.

Car dealers, especially on ebay etc are asking way over the prices the same cars are actually selling for.

I bet you would find your car would actually sell now for around 9k to a buyer.

Auction prices are shooting up as dealers search around for stock, but private buyers are now undercutting trade costs.

chewmylegoff

anyone going through the door of a car dealership at the moment expects to get a big discount - 10% or so. therefore, if you push the starting price up, then when they demand 10% off you give it to them, they feel the "smug, got a great deal" emotion and you make more profit. bingo.

Really2

Graham_Devon wrote: »

Car dealers, especially on ebay etc are asking way over the prices the same cars are actually selling for.

I bet you would find your car would actually sell now for around 9k to a buyer.

Auction prices are shooting up as dealers search around for stock, but private buyers are now undercutting trade costs.

If I can sell it to £10K to webuyany car why would I sell it for £9K.

mr.broderick

Link wouldn't work for me graham.
We are putting new car prices up on april 9th. (nissan)
Appx 3.7%.

Graham_Devon

Before deleting your post, you said:

I can sell it for £10K to webuyanycar.

But I would only get £9K

How does that work graham?

Check it out if you want 07 Volvo s80 2.4D Geartronic Full leather, Winter Pack, Premuium audio system.

I see you removed the £9K comment.;)

---

I didnt remove anything. And I was talking about private buyers, which I explained.

Really2

Graham_Devon wrote: »

Before deleting your post, you said:

I can sell it for £10K to webuyanycar.

So Why would I only get £9K

How does that work graham?

Check it out if you want 07 Volvo s80 2.4D Geartronic Full leather, Winter Pack, Premuium audio system.

I see you removed the £9K comment.;)

---

I didnt remove anything. And I was talking about private buyers, which I explained.

I never said that Graham Did I? You said I would only get £9K and I questioned why I would sell it for £9k if I could sell it for £10K? but when I looked at the reply I noticed you deleted the £9K comment (Or perhaps I could not see it).

So I deleted my post.

Do you have a problem graham that my car is worth the same I paid for it after 3 months and that it would cost £13K to replace?

You are talking about car inflation afterall.:rotfl:

Amended it to what I actualy wrote.:)