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Ford Incentives Heavily Ramped Up In Q4 2023

Following a number of years when new vehicle inventory levels remained near record lows, improving supply chain conditions have led to a significant bounce back in that regard. This is true of Ford, especially, which has seen its inventory levels skyrocket to higher-than-average figures as of late, with certain models – such as the all-electric Ford F-150 Lightning and Ford Mustang Mach-E – ranking far higher than others. As such, The Blue Oval has been steadily rolling out new incentives to help drive inventory levels back down to normal, data that was recently highlighted in Cox Automotive’s Q4 Ford 2023 U.S. Market Performance analysis.

Ford Motor Company U.S. Incentive Spending Q4 2023

According to this new data, Ford incentives came in at an average of $3,145 in the fourth quarter of 2023, which represents a whopping 195 percent increase versus Q4 2022. By brand, Ford vehicles were subjected to an average of $3,071 in incentives per vehicle, which is a 203 percent year-over-year increase, while Lincoln averaged $4,670, which equates to an increase of 103 percent.

It is worth noting that Q4 2022 was still a tough time in regards to production issues and resulting low inventory levels, which is what caused this unusually low incentive average. However, FoMoCo’s incentives still lag behind pre-pandemic levels, as Ford brand incentives generally averaged more than $4,000 per vehicle, while Lincoln incentives came in at more than $7,000 per vehicle in 2020 and prior.

Ford Mustang Mach-E GT Performance Edition Argentina - Exterior 002 - Rear Three Quarters
Now, it seems as if more incentives are needed given the fact that average Blue Oval transaction pricing actually increased by 2.2 percent in December to $56,198, capping off a year of ups and downs in that regard. That figure is also 2.1 percent lower than December 2022, when the company’s average transaction price was $57,432, while overall incentive spending across the entire market reached 5.5 percent of ATP for the first time since August 2021 – a big jump from the 2.7 percent incentives accounted for in December 2022.

We’ll have more on Ford’s inventory levels soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comment

  1. David Dickinson II

    I think Ford is going to run into trouble soon. Ford spent the past couple of years treating customers and dealers badly, Ford will need to soon fold on a electric bet that did not work, quality problems plagued customers leaving a bitter taste in their mouth, orders couldn’t (wouldn’t?) be delivered, Ford negotiated a bad labor contract when it was flush with cash (i.e. overpaid), and now many Ford customers have run out of money. Ford will need to woo people with major incentives. Get some new Bilstein shocks, because there is a rough road for Ford ahead.

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