High Prices Aren't Stopping Ford Mustang Buyers

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis 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 in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - April 13, 2021

Today, Ford declared that the Mustang was last year's bestselling sports coupe ahead of the model's 57th birthday this Saturday. Interestingly, our analysis of Mustang incentives finds that this success comes despite high prices and expensive leases.

For example, Ford's online payment estimator says the 2021 Mustang EcoBoost starts at $368 for 36 months with $3,363 at signing. That's based on the cheapest coupe with an automatic transmission, an MSRP of $29,945, and 10,500 miles per year.

However, with an effective cost of $461/month, we consider this a lousy value. Meanwhile, Chevy's leasing guide says you can lease the 2021 Camaro LT1 V8 at $287 for 39 months with $287 at signing, or $294/month based on 10,000 miles a year when coming from a competitive lease.

That's a difference of $167/month for a pair of cars with MSRPs separated by over $6,600. Unsurprisingly, the Camaro ranks as one of the best leases on a car in the month of April.

Financing a Mustang is quite expensive as well, with an advertised rate from Ford Credit of 5.9% for 72 months. The best rate on the 2021 Dodge Challenger is 0% for 72 months.

This difference in interest rates could allow a shopper to buy a $35,000 Challenger for around the cost of a $30,000 Mustang. You could even save by opting for a 4-door 2022 Kia Stinger, which recently arrived with 2.9% APR for 72 months.

We think the Mustang's success says a lot about its ability to captivate buyers despite having lousy incentives. Considering the fact that this has essentially been the case since late last year, we don't expect Mustang prices to improve anytime soon.

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, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis 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 in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter

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