By on July 17, 2015

2015 Ford F-150

A Ford spokesman said Friday that despite the automaker offering nearly $11,000 on particular F-150 models, their incentives are still under the segment average.

“It’s not like every F-150 customer walking into a Ford dealer today — whether they’re in L.A. or New York — is going to get $10,000 off of every single model,” Truck Communications Manager Mike Levine said.

“On average, we’re lower than the segment.”

Levine said the $10,819 we reported on yesterday was a specific truck in a specific area. Those numbers, such as $7,050 off, that Ford publicizes on its website aren’t indicative of every incentive available.

F-150 incentives

“That’s a very specific set of incentives that are all stacked together that gets you to $10,000,” he said.

According to Ford, those incentives include: $3,769 average dealer discount; $500 customer cash; $1,000 XLT customer cash; $300 2.7-liter V6 EcoBoost bonus cash; $2,000 302A XLT Luxury Chrome or Sport packages.; $2,500 bonus cash; and $750 Ford Credit Bonus Cash, which requires Ford Credit financing.

Levine said the average incentive offered on a F-150 is $3,354, which is $800 lower than the segment average and lower than the automaker had offered one year ago.

Dealer inventories are down, Levine said, and Ford needs to stay competitive.

“For this particular truck, we’re helping customers get into a better truck. It’s something that we do from time-to-time, and it’s in line with what our competitors do,” he said.

Representatives from Ram and General Motors didn’t immediately respond to requests for comment.

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45 Comments on “Ford: Our Incentives Are Still Lower than Overall Segment...”


  • avatar
    Big Al from Oz

    Well Ford.

    Maybe you should start by being sincere.

    How can you last month state that a chassis shortage is causing supply issue, with a large decline in sales, then state this month with the same issues affecting production state;

    WE ARE HAVING ISSUE WITH PRODUCTION IMPACTING SUPPLY NEGATIVELY……………………THEN STATE; TO FIX THE PROBLEM WE WILL OFFER MASSIVE INCENTIVES AND HANDOUTS.

    This doesn’t add up.

    Tell the truth Ford…..sincerity is a good marketing tool sometimes. Especially when it is blatantly obvious Ford is having problems.

    • 0 avatar

      The frame shortage is real, I can’t order half the trucks I want for our dealership. The SUVs with Beds (Super Crew) aren’t so impacted. You have to remember too that there are two plants building these so there are many many variables. Still rebates are good for sales, GM and Ram have shown that.

    • 0 avatar
      Higheriq

      The total inventory of F-150s is still not where it should be to be considered “ideal”. In some areas, the current inventory is heavy with crew-cab 4WD models (which just happens to be the model on which you MAY be able to get UP TO $10,000 in discounts). See, trucks, unlike cars, have many, many, many more build combinations (engines, bed lengths, cabs, axles, etc.) so higher inventories than cars are the norm. A $10,000 discount on a certain configuration in a certain area of the country is really nothing to be alarmed about.

  • avatar
    Master Baiter

    I never understood the price it 20% higher then discount the heck out it pricing model the American brands seem to love. To me it just looks like you’re trying to rip people off who aren’t savvy enough to grab all the discounts. It’s a slimy business practice, and I believe it’s costing these brands more dollars in the long run than simple, honest, up front pricing.

    • 0 avatar
      dwford

      It’s really just that customers want the perception of a large percentage discount. So most automakers inflate the MSRP and then slap a rebate on the vehicle.

      • 0 avatar
        nickoo

        What customer’s want that? I look at the MSRP for something like a Silverado and laugh. The pricing model vehicles is designed to be as confusing as possible and to rip customers off and make the maximum profit for the dealers. It’s an outdated sales model in this day and age of the internet that can’t get squashed soon enough. Why should a major purchase such as a car cost more or less depending upon what day of the week, what day of the month, sales goals, or what-have-you be in play. I, and the general public, don’t have time or inclination to spend many hours researching how to get the very best deal. Just set the price like Saturn used to do and be done with it:

        Sales should consist of: value the trade in based upon a set formula, for example KBB dealer trade in values, subtract trade-in value from fixed MSRP of new vehicle, run credit to determine APR for finance customers.

        • 0 avatar

          I’d agree except most of the buying public really is too dumb to research. I dream of the day when it’s just upfront pricing with a reasonable profit and sales is getting someone the right vehicle to make them happy enough to come back. Currently most sales are made by giving away something and having the customer want even more back.

    • 0 avatar
      Tom_M

      I agree. How much better would it be if they advertised a Chrysler 200 for the price of a Corolla? Or a Malibu for the price of a Civic? Isn’t that where the pricing ends up anyway?

    • 0 avatar
      krhodes1

      There are some suckers who pay it.

    • 0 avatar
      Dan

      On top of the dishonesty of it, many states tie personal property taxes to the MSRP instead of the actual transaction price. Pretending their $35,000 truck is a $45,000 truck can cost the buyer a couple hundred bucks per year.

      In Maryland you also pay sales tax on the full price of the car before any rebates are applied to the balance owed. So the de rigueur $5000 incentive is really $4700 with a $300 cut to Annapolis.

      As nearly everything else in the car sales business, sleaze abounds.

      • 0 avatar
        frozenman

        Just wait and see what happens when the new 2016 Tacoma hits the dealer lots, “rinse and repeat” as they say.

      • 0 avatar
        jim brewer

        No dishonesty here I’m afraid. Just stupidity. Who would want Crew cab truck with a 2.7L engine and a high trim level? Basically no one.

        • 0 avatar
          Dan

          The 2.7 is only the economy engine on paper. On the dyno it’s far ahead of the 5.0, within spitting distance of the 3.5, and between the throttle and transmission programming it drives stronger than either of them.

          If I trusted it to run 10 years without a four figure surprise, which I didn’t and don’t, I would have held out 6 months for the discounting to get here and bought one instead of a Ram.

        • 0 avatar

          The 2.7 that would run circles around my 351? Why wouldn’t someone want it on a fancy grocery getter that tows a little camper twice a year.

    • 0 avatar
      Higheriq

      It is because some will grab and claw for the discounts and think they got a good deal, whereas other buyers won’t take all of the discounts, and manufacturer makes more profit, and the customer STILL thinks they got a good deal. If the vehicles were priced 20% cheaper, buyers would STILL want a discount.

  • avatar
    Pch101

    The question to ask is what percentage of the total inventory is eligible for this incentive.

    When Super Big Box Store sells a few video game consoles for $20 or whatever on the day after Thanksgiving, we don’t presume that it tells us much of anything about the overall state of retail or the video game industry. The press corps seems to be getting caught up in the hype of a marketing program instead of understanding the business.

    • 0 avatar
      Big Al from Oz

      Pch101,
      The segment is the largest and one of the more profitable segments.

      Again, your lack of understanding is amazing.

      • 0 avatar
        DenverMike

        @BAFO – Are you just throwing out random facts? It’s not helping your case the F-series is the most profitable “car” in the world. That’s for the last 20+ years. What does that mean to you?

        GM fullsize pickups are the 2nd most profitable, but even if they switch places, the F-series has more than enough pre tax profits to burn.

        You keep stating the F-150 is “2nd” in sales to the Silverado 1500, except it’s *ALWAYS* 2nd to the Silverado 1500. Except for ’04s iirc.

        But this time, it’s only a few hundred short. Usually the F-150 is *tens of thousands short*, by the end of the year. This is only 6 month in and not counting hampered F-150 production.

        Think about that before you scamper off..

  • avatar
    thornmark

    “On average, we’re lower than the segment.”

    And that’s just mpg. EcoBust, baby.

  • avatar
    ClutchCarGo

    “That’s a very specific set of incentives that are all stacked together that gets you to $10,000,” he said.

    So his defense of Ford pricing comes down to the fact that they purposely advertise an exceptional and not widely available set of rebates in order to deceive the buyer into thinking that they’ll get a big bargain? That’s not much of a defense.

  • avatar
    an innocent man

    Huh. I was on Edmunds looking at the “what others paid” and there was an ad for $8000 off 2015 Silverados. The Fords were about 3g off.

    • 0 avatar
      sunridge place

      The entire point of this article seems to have gone right over your head. There are not 8k rebates on all 2015 Silverados either. Same drill there with Chevy.

      Your comment is a perfect example why these ads exist. Congrats on your contribution to their continuation.

  • avatar
    Krivka

    In Northeast Ohio, F-150s are not selling well. 8K is coming off mid level trims. Comparable Silverado discount is 4k. I know it is only a snapshot, but Ram trucks are selling well too. The GM and Ram trucks seem to be eating the F-150’s lunch.

    • 0 avatar
      Lou_BC

      Krivka – there will always be regional variations. In my part of BC the GMT K2XX trucks were really slow to launch. They have steadily picked up steam. The new 2015 Ford has sold well right of the bat.

      • 0 avatar
        Big Al from Oz

        Lou_BC,
        It seems the regional divisions you speak of are currently being redrawn or people are changing purchasing habits marginally.

        From Ford’s perspective the areas in which they move Ford product hasn’t altered very much.

        The only change would be the numbers of Ford 1/2 ton pickups in each of those regions are trending downwards.

    • 0 avatar
      Scoutdude

      And how much of that $8000 is dealer discount, which of course when you get there only applies to the “VINs listed at dealership” which turns out to be 2 or 3. If you read the article you’ll see that in the case of the $10K incentive includes $3700 in average dealer discount which accounts for the ones that list as $15K off or MSRP on this one (or a few) only.

  • avatar
    mikedt

    ” $500 customer cash; ” is part of a incentive??? That’s an interesting way of reclassifying my money. Kind of like my local dealers that show some great price in the Sunday paper and then you look at the asterisk and see that the price includes 5 grand in customer down payment/trade in.

    • 0 avatar
      sunridge place

      Customer Cash in this example is not your cash. That is just another industry term for a rebate. Your newspaper advertisements are typically payment based ads that assume a down payment (which is often required)

      • 0 avatar

        Believe it or not some states allow you to advertise a price that includes the actual monies of the customer in your price. That’s why I argue against interstate shopping by all but the savviest customers or your “great deal” will leave you hosed. But in this case “Customer Cash” is an actual rebate.

  • avatar
    DeadWeight

    I honestly believe Ford has a serious, budding crisis on its hands.

    They moved to a much more expensive aluminum body panel truck, with that truck (F Series) bringing in an estimated 88% of Ford’s total global net profit, at a point closer to the next downturn in the business cycle (hence slowing p/you truck sales), rather than doing so in the early innings of a business cycle expansion (as 2010 would have been).

    This problem has been compounded by the fact that the core pickup truck buyer verdict is still unknown as to whether there will be a positive long-term reception of aluminum body panels in a full size pickup truck, that many of the promised benefits of aluminum in this application have not been seen in real world driving (hence Ford shifting alleged benefits to payload capacity vs fuel economy), and that the turbocharged gasoline motors Ford is pushing in the F Series may fall out of favor with even the diehard loyalists who’ve thus far stuck with the Blue Oval despite some real teething problems with the ecoboost motors in the pickup truck application.

    I believe Ford also is having issues getting consistent quality and appropriate volume of parts from some key suppliers for the F Series, and they may have underestimated the costs of ramping up new parts procurement (they already sank a lot of money into retooling plants).

    Ford is now likely facing an the unavoidable task of ramping of F Series incentives in order to match RAM and GM, while having the highest pickup truck production costs, if they wish to maintain market share – all at a time when the next downturn in the business cycle looms large (almost always near the end of a 2nd term incumbent president leaving office).

    • 0 avatar
      Dan

      I don’t agree with that gloomy assessment.

      Ford had real production issues. The lots were thin all spring. They lost most of a model year of fleet sales. The 2016 line starts running in 3 months and the single cabs still aren’t here, there are hardly any XL work trucks.

      And for all of that they still hit what, 80% of last year’s half ton sales? Nearly all of which were loaded trucks to retail buyers with no incentives. The $60,000 Platinums are turning in a couple of weeks and they still don’t have any discounting. Commodity priced XLTs finally showing up is an addition to, not an instead of.

      Ford is going to be selling this truck in one form or another for a decade or more. That 2.7 mileage sticker isn’t worth much with $50/bbl oil today, all the more so because the sticker is a lie, but one day it will be. In the mean time a $10,000 profit margin has room for $1,500 of aluminum.

      • 0 avatar
        sunridge place

        These kind of facts have no place among the keyboard CEO’s on TTAC. Similar things happened during GM truck launch. Same morons on here and in the automotive blogger world saying the same stupid stuff.

    • 0 avatar
      Big Al from Oz

      DeadWeight,
      I view the new 2015 aluminium F-150 as a competitive vehicle in capability to the current offerings in the US 1/2 ton market. The only exception might be the current Titan.

      That’s the problem Ford has encountered. They are producing an average performing vehicle. It doesn’t offer the best FE, that goes to Ram. Since most pickups are in fact cars/SUVs and not trucks comfort goes a long way. Ford doesn’t lead here.

      There are many unknowns with this new 2015 aluminium F-150. For starters how durable will the new 2.7 EcoBoost be? They have removed bearings and applied microns thick anti friction surfaces.

      How good is the Alcoa engineered bonding? Ford has made a deal with Alcoa with the new bonding techniques as well, no one else can use it.

      Even with the incentives I somehow don’t think the consumer will not be suckered in as much as Ford would hope.

      Why?

      Because the vehicle isn’t what Ford had promised and it is very radical. Even at the discounted prices they are a lot of cash. People will still shy away.

    • 0 avatar
      Pch101

      “serious, budding crisis”

      Hyperbole much?

      It would appear that Ford may have teething issues with the launch, otherwise there would be more inventory. Those kinds of things are usually temporary, not a sign of the coming Apocalypse. This isn’t that complicated.

      A “get your attention” incentive is nothing to freak out about. If you remember the old days when people actually read newspapers, the automotive advertising section was full of gimmicky come-on ads offering low prices that were intended to be more of a bait and switch. Just because they’re online doesn’t mean that they represent some kind of average.

      • 0 avatar
        Big Al from Oz

        Pch101,
        I have yet to see any comment that aligns to one of your usual overstatements, ie, apocalypse.

        Ford is number two overall. Take the HDs and steel F-150s out of the picture and the new 2015 aluminium F-150 doesn’t appear to be in any way, shape or form a real challenger.

        You tend to spew your distorted, subjective and insincere views in regards to trends.

        This time you are incorrect with your assertions or analysis, which is the norm.

  • avatar
    Jeff S

    I believe you will see even more incentives on the F-150. GM and Ram have both been gaining market share and will keep the manufacturer incentives going at least through the end of the year. Mike Levine is going to put a positive spin on the F-150 and will not tell the public if Ford is planning any additional incentives.

    • 0 avatar
      DenverMike

      Why wouldn’t there be more incentive to come? Consumers that gotta have them *now* don’t mind paying more. And they will.

      Wait at least ’til they’re in full-production, stacking them deep on dealer lots, and starting to gather dust as the 2016s are headed to dealers.

      It’s good news for us there’s almost endless variations and combinations of pickups. Bend a little on trim, color, options, and score a tremendous saving towards the end of the model-year.

    • 0 avatar
      sunridge place

      No freakin’ way….a Ford PR guy won’t tell the public about future incentive programs? The nerve of that guy.

  • avatar
    bd2

    Really not that surprising.

    GM had the same issue when its trucks were new.

    Aside from the higher-end buyers who opt for the top trim/loaded models, more and more of the mainstream buyer are price/bargain-conscious and just buy from whatever automaker/dealer is offering the best deal (esp. as there are numerous options with one not being much better than the other these days).

    Coinciding with this is the ever increasingly short period that an automaker can expect to get a “premium” for the volume trim(s) of a new model (probably 2-3 months tops these days).

    Many buyers would just rather opt for the previous generation that an automaker has been selling off at deep discounts (saw sales of the old Honda Pilot rise as buyers flocked to the good deals).

    • 0 avatar
      DeadWeight

      It may or may not be surprising, but it IS serious, and distinguishable from GM’s p/u slow launch for the following reasons:

      1) Ford is without question spending more to source components (e.g. aluminum body panels) for these trucks, in addition to retooling their F Series lines in a much more comprehensive and expensive manner than GM did, when it launched their new Silverado/Sierra, making the new F Series more expensive to produce (these costs will be amortized “down” over time – with the exception that the aluminum body panels may not fall in sourcing cost as rapidly, or maybe even at all – so that each additional truck produced costs less “more” to produce, but the initial production run is likely to be very much more expensive than GM’s counterparts).

      2) This is Ford’s literal franchise, as mentioned before, accounting for a rumored as-much-as 88% of Ford’s global profits. If this new F Series is not as successful as the last generation in terms of profitability, market share, and very importantly, it damages Ford’s reputation for building the kind of truck that long time Ford F Series buyers value, it will devastate Ford (Ford went big, here).

      3) We don’t know the true level of incentive spending currently (IMO), and the product mix in terms of the trim levels of F Series being ordered/floorplanned by Ford dealers, but if the F Series loyalists sour on this latest iteration of Ford’s money maker, and worse yet, defect in significant numbers to competitors’ pickups, there’s extreme risk for Ford – so much so that Ford would be smart to go to any lengths in terms of incentives, service, warranties, etc., to stem that defection (on a truck that is costlier to produce than the competition, mind you).

      *It’s objectively true that the new F Series is not performing in real life driving as Ford promised in terms of fuel economy, by the way (CR eked out a mere 1mpg gain with a 2.7 ecoboost vs a 5.3 liter Silverado in real world driving), and so Ford has shifted discussion of the benefits of the aluminum body panel fabrication to payload and towing benefits. There’s also much evidence that some Ford loyalists are not as keen on FI in their gasoline trucks and prefer normally aspirated motors. Reliability, long-term, of the ecoboost in the F Series, is a real risk for Ford, in addition to the higher cost of body/structure repair.

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