Car supplies are at all-time lows. The shutdown of assembly plants in 2020 over COVID-19 concerns, and the more recent microchip shortage means that cars and trucks are at a premium. And in the midst of all of this Ford has launched a number of important vehicles like the Bronco, Mustang Mach-E, new Explorer, and F-150.
Buyers are ready to receive their shiny new Ford
Now with online ordering, there are customers that have put down deposits and are ready to receive their shiny new Ford. But there aren’t any to send out. What’s a company to do? Ford has decided to bribe buyers to hang in there with new car incentives.
One thing Ford is doing is doubling existing discounts on certain vehicles to help to keep the prices at reasonable levels. That’s because with supplies so low dealers are charging more than MSRP. It is Ford’s way of keeping a lid on run-away prices.
Ford is implementing the “Retail Order Incentive Program” to entice buyers to stick with Ford
But the other thing that Ford is doing is implementing the “Retail Order Incentive Program.” Since there are not a lot of vehicles to pack the dealership lots it is an incentive of $1,000 to close deals on non-existent Fords. Ford is offering it on the F-150 and Expedition.
Surprisingly, Ford is not offering the new car incentive on Mustang Mach-E and Bronco models. Ford has been able to eke out Mustang Mach-E and Bronco Sport models. But the Bronco is still in the wings. Its launch keeps getting pushed back.
Dealers are almost begging for used cars to have something to show at their dealerships. Prices are through the roof, with models like the Bronco Sport seeing $10,000 markups. Then there have been issues like the one in New Jersey.
Ford had to pay New Jersey Mach-E buyers $5,000
Ford had to pay Mustang Mach-E buyers $5,000. This happened because Ford did not include a local plug-in rebate. And with all of this swirling around it is hard to say when it will start to ease up.
In the meantime, the Ford new car incentives will run through July 6. So Ford expects this to drag on at least another month. If you ordered something between April 1 and now, the new car incentives are retroactive to then.
Additionally, Ford is giving dealers a $250 bonus for closing orders on its 2021 models. So Ford is spreading the cabbage around to keep all factions happy. What Ford will do after July 6 is anybody’s guess. If the shortage of vehicles continues, expect it to offer similar incentives until this crunch is over.