Ford Pricing PLU$ Explained

ford pricing plu explained

Ford recently announced Employee Pricing PLU$, with the PLU$ for any rebate. As Ford employees get any rebates the general public gets, these aren’t really extra. Every 2008 and 2009 is included except for the hybrid SUVs and the new F-150. Of course, with Jet-gate and all, is anyone paying attention? In case someone is actually buying a Ford, Mercury (yes, they’re still around), or Lincoln this month or next, TrueDelta has supplied with a close (within $25) approximation of the employee prices. The catch is the usual one: lower rebates. For example, the Ford Fusion rebate has been reduced from $3,500 to $2,500. One oddity: the rebate is $1,000 higher on the V6 Escape than on the four-cylinder Escape. Since Ford actually charges under a grand for the V6 at employee prices, Ford essentially will pay you $108 for the 69 extra horspower. Now, that’s a plus.

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  • NulloModo NulloModo on Nov 22, 2008

    There are a couple other exclusions, most notably Shelby GT500s and KRs, Mustang Bullits, Harley Davidson trucks, and cab and chassis trucks (F-150 and LCF) and cutaway E-series vans. The new pricing plan does help certain vehicles, such as the MKS, which at least in this area is not discounted much if at all, and which had no rebates open to everyone previously (just owner loyalty or least renewal/conquest). Most programs did get slightly better. The other bonus is that it makes it easier for potential customers, as by law they must get all rebates, and Ford is pretty strict about making sure no one monkeys around with the price, so, there is little left for negotiation. Ronin - The only people I have ever seen do a 36 month loan are those who could afford to buy the car in cash, but due to an absurdly low (or lack of any) interest charge, decided to take the manufacturers cheaper finance money and invest the balance. The average person buys a car on a 60 month loan, maybe even a 72. Dastanley - Since you and your wife both have relatively new vehicles these ads aren't really being targeted towards you anyway. While yes, millions have bought vehicles in recent years, there are still millions of recently paid off 02, 03, and 04s floating around. While some people will surely hold off, the promise of getting a great deal (and whether or not some of it is marketing, the new promotion is a great deal on most vehicles) is just the kick they need to replace their car.

  • Turbo G Turbo G on Nov 22, 2008

    A Bullitt at employee price minus rebates + cheap financing might have been interesting.... Hard to believe I can get a Whopper for the same price as a share of Ford...

  • NulloModo NulloModo on Nov 22, 2008

    On second look, the Bullitt exclusion may be a regional thing. I saw it in the fine print on a commercial airing tonight, but looking at the fine print on the ford website it mentions the Shelby, but not the Bullitt.

  • Ronin Ronin on Nov 23, 2008

    NulloModo, the reason I threw out a 36-month loan is that was the norm 25+ years ago. Wait, it was 24 to 36 month loan on a new car; maybe a 10% down payment. The reason for pointing it out was not that there was anything magical about that term, but it was a term within the cash flow capabilities of normal people. People could service that debt and afterwards own the car clear for some years. Nowadays a 60 or 72 month loan on a car means the person can't afford what had been the norm for decades. It means in effect the car is much less affordable for a working person. Which only illustrates my point: cars cost too much. It was only ready credit that allowed automakers to raise prices so high in proportion to people's incomes. And because of ready credit folks didn't complain so much. Now people are saying, wait a minute. We can look up say the cost of a Corolla in 1972 vs the cost of a Corolla today as a percentage of median American income and see the cost is noticeably higher today. While at the same time Americans are coping with much higher healthcare costs (then your employer paid them all), much higher tuition, and much higher taxes as a percent of income. And you are not richer, since your increase came as a result of inflation. Cars are priced at least 10% too high, maybe 20%, possibly more. I'm talking about market price, not MSRP. Proof? Sales spiked over the last few years every time a red tag or mr opportunity or save-by ad came out that slashed prices. The biggest factor to jumpstart car sales will be a drop in price. The car companies feel it is their god-given right to demand higher prices and to have the government subsidize that right. Why is it in the interest of American taxpayers to pay higher than market prices for American cars? Dunno, ask congress. This is not my theory, and I don't get to determine prices. But neither do the car companies. The buyers do. And the buyers are voting with their bucks. Are the car execs even listening to the market?