Ford Dealers Can Snitch On Each Other If Their EV Prices Are Too Low

By

Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

, Senior Pricing Analyst - September 10, 2021

Ford is enabling dealers to tell on each other if their prices are too low on its next generation of EVs. According to a letter outlining its Ad Covenant Program, Ford says "dealers have the ability to lodge complaints against other dealers regarding alleged violations" regarding the ability to advertise its EVs for less than MSRP.

As we reported today, Ford is prohibiting dealers from listing 2022 F-150 Lightning prices under MSRP. However, rather than being a new restriction, our analysis finds that this is actually just an extension of a voluntary requirement originally put in place with the introduction of the Mustang Mach-E well over a year ago.

Since the F-150 Lightning and Mach-E don't have a normal invoice price like most vehicles, the brand wants dealers to effectively use a one-price model for its EVs. Although Tesla has taken this route for years on its established lineup of electric vehicles, the limitation could be jarring for Ford buyers expecting to get a deal.

The good news is that the F-150 Lightning will likely be eligible for some pretty good incentives. After all, that's already the case with the Mach-E considering it's eligible for up to $11,000 in savings in states like California. The bad news is that dealers may not be able to tell you about additional savings in their advertising.

Even though Ford has reportedly committed to increasing F-150 Lighting production, the wait for a new Mach-E has stretched to as long as 28 weeks. Having said all of that, Ford is positioning itself to offer a truly compelling set of choices for a segment of buyers who may not have ever considered buying an electric vehicle.

Top EV, PHEV, and Hybrid Leases & Deals

, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analyses of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured by The Wall Street Journal, Fox Business, Motor Trend, Automobile Magazine, and more.

Follow On: Twitter

Privacy Policy|Do Not Sell My Personal Information|Terms of Use|Cookie Policy|Disclaimer|
COPYRIGHT 1999-2021 MH Sub I, LLC dba CarsDirect.com