The automotive retail landscape has radically changed with the proliferation of digital storefronts and fixed prices, with the latter trend a core feature for automakers who decided against the franchise model. Ford – with more than 3,000 franchised dealers in the United States – has struggled to offer a similar buying experience, as no two Blue Oval dealer will likely have the same price, at least for certain vehicles. As Ford Authority reported back in 2019, the automaker prevented its dealer network from advertising the Ford Mustang Mach-E below MSRP in an effort to appear more like a manufacturer that sells vehicles at a fixed price. It followed suit with a similar policy for the Ford F-150 Lightning, and as of 2022, Lincoln dealers cannot advertise deals above MSRP. Now, the automaker has changed its tune, according to Cars Direct.
According to the site, 2022 and 2023 Ford Mustang Mach-E EVs can be advertised at a price, payment, or offer that is derived from a starting price below MSRP. It is unclear if this will have a major impact on sales however, since dealers were always allowed to sell the EV at any price they desired. In any event, the change comes at an inauspicious time for the company’s first dedicated EV. In a few weeks, it will likely lose out on the federal EV tax credit and therefore become more expensive for shoppers that qualified for the incentive. And despite some price cuts, it remains more expensive than its top competitor, the Tesla Model Y. Still, it recently regained its status as a Consumer Reports recommended vehicle and sales are up 45 percent through the third quarter of 2023.
At the moment, it is also unclear if this policy change will impact how EV sales will operate in 2024, since the new retail certification model is expected to launch in January. Fixed prices for EVs is a central part of the sales program, along with other requirements for dealers to install EV infrastructure on site. The company has recently relaxed some of those requirements due to supply chain issues regarding EV chargers.
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