Ford's April hybrid sales surge on strong incentives
Ford Motor Company announced yesterday that sales of its hybrid SUVs rose 50 percent year-over-year in April to 2,800 units, largely on the backs of sizeable incentive initiatives.
The numbers indicate a 75 percent increase over March, which would appear to indicate that Ford is gaining some traction thanks to the zero-percent 60-month loans on its Escape and Mercury Mariner hybrids, as well as the ramping up the ‘Kermit Factor’ (read: spending more $$$ on advertising).
Ford also attributes government tax benefits and increasing gas prices for the demand uptick.
[Source: Reuters via Planet Ark; Autos.163]
_opt_thumbnail.jpg)
_thumbnail.jpg "2011 Audi A8: Live from Miami")
Reader Comments (Page 1 of 2)
Bill 10:13AM (5/02/2006)
Dunno if there is any relationship, but last Friday I noticed 4 Escape hybrids and 1 Mariner hybrid on a stretch of street only about 3 blocks long. Could be completely coincidental, but at the time I thought "Wow, those incentives must be working!".
Reply
Jerry Green 10:19AM (5/02/2006)
I'm so unimpressed with Ford it is sick. First, we have their CEO who makes way too much money for a lousy return for it's investors... 2,800 units doesn't cover their costs, especially when their UAW contract and total costs per employee is at about $75 an hour. If you want a vehicle that goes everywhere with more impressive average MPG, buy a 4cyl. 2006 Malibu (I get 36 MPG hiway on mine) for about 1/2 the price of this Hybrid, and support a real US Automaker that will soon rip up their UAW contract and hire a work force that cares about the company, not he union. That's what we need in America!
Reply
Michael Karesh 10:24AM (5/02/2006)
Word of the tax credit might be spreading. It is substantial, pretty much eliminating the cost disadvantage of a hybrid. I include these credits in the price comparisons on my site.
http://www.truedelta.com/prices.php
My review of the Escape Hybrid: http://www.epinions.com/content_198884363908
Reply
Onell 10:25AM (5/02/2006)
Sales surge because of the ZERO percent APR, ZERO downpayment plus heavy incentives.
Reply
Chris 10:30AM (5/02/2006)
A fully loaded Escape Hybrid according to Edmunds TMV is selling for $37,331. Add in 7% state tax, with no money down, the car note on this Hybrid Ford $1,109 per month for 36 months on an interest free 0% loan; and we haven't yet added the monthly insurance and monthly fuel costs. How can this vehicle save anybody money? And these are very expensive to insure. With a $200 monthly insurance bill, and $100 in fuel costs, I need to gross $2,000 amonth to afford this vehicle. NO THANKS! I'll keep my 2005 Chevy Malibu that gets 36 MPG on the highway, where I travel, and 26 in the city.
Reply
Chris 10:40AM (5/02/2006)
Hybrid Credit according to http://www.fueleconomy.gov/feg/tax_hybrid.shtml
Credit Amount
$2,600* 2006 Ford Escape Hybrid 2WD
$1,950* 2006 Ford Escape Hybrid 4WD
$1,950* 2006 Mercury Mariner Hybrid 4WD
it's just a tax credit and will not lower your payment, and you won't recoup all the money, just a portion in relation to realized cash value. Plus, you can file for it next year!
Even with the credit you're still spending the money I mentioned. I like my $260 Malibu payment, and like I said, I get 36 MPG in the city and my yearly insurance bill full coverage is $600.
I put that extra saving compared to this Hybrid into a better more fullfilling lifestyle. It's my part as a CONSERVATIONIST!
Reply
Michael 10:42AM (5/02/2006)
I think Ford actually sold 3420 units in April, 3039 Ford Escapes and 381 Mercury Mariners. Which is 100% increase over last April when they sold 1705 Escapes (the Mariner wasn't out, yet).
I'm getting this from the Ford press release.
Reply
psych101 10:46AM (5/02/2006)
With federal tax credit of $2600 and 0% APR, that's $415 a month for a FWD version bought at MSRP, $404 monthly payment for 3% above invoice.
That's a good price for people who want an SUV. Assuming 6.5% APR and no tax credit, the same vehicle would cost $539 a month. 8.5% APR, $565 a month. So people are saving from $135 to $161 a month, more than enough to buy fuel for the car.
The non-hybrid Escape in the most popular model, the XLT automatic with V6, with Ford rebates of $2000 cash back and $1000 bonus cash, would have monthly payments of $411 at 6.5% APR or $431 at 8.5% APR. On top of that, obviously, would be the higher monthly fuel costs.
For once, the Hybrid version of the same car is less expensive than the non-hybrid.
Reply
Den in IN 10:47AM (5/02/2006)
#4, you are soooo logical. Hybrids hardly measure up in terms of pure dollars and cents. Fact is most of the people who buy the most logical and efficent cars would look at Autoblog as much as they would look at a toasterblog. Hybrids are another experession of personality much the way the Magnum RT is for me. I like the growel of the Hemi and they like, I suppost, the woosh of the electrical motor.
Reply
Ben 10:51AM (5/02/2006)
"Even with the credit you're still spending the money I mentioned. I like my $260 Malibu payment, and like I said, I get 36 MPG in the city and my yearly insurance bill full coverage is $600."
The Malibu's crap 2.2l 4-cyl is only rated at 24 MPG City (the ancient 3.5l only gets 22 MPG). I doubt your getting 36 out of it.
Reply
Michael Karesh 10:53AM (5/02/2006)
"it's just a tax credit and will not lower your payment, and you won't recoup all the money, just a portion in relation to realized cash value. Plus, you can file for it next year!"
Mostly true. But I'm not sure what the "just a portion in relation to realized cash value" bit means. Are you thinking of a tax deduction rather than a tax credit?
My site allows you to calculate monthly payments.
I've often found Edmund's TMV to be wildly inaccurate.
Reply
Chris 10:56AM (5/02/2006)
Psych101 ... where do you get those numbers?
Edmunds says the TMV on a BASE FWD is $28,415. You get no immediate cash benefit from the tax Credit, you apply for that next year. You still have to add State Tax, and for most the average is 7%. That brings the total to $30,404. At 0% for 60 months, the payment is $506. Many people don't like 60 months, and at 48 months the most basic FWD Escape Hybrid cost $633. let's not forget we still have to pay the insurance co. and for fuel.
NO DEAL!
Reply
Chris 10:59AM (5/02/2006)
Ben, you can drive with Me or you can read this or that? What you read is B/S, I don't need to sugar up the truth ... you just hate Malibu's but that engine has given me no problems, I have 30K on it already. Your opinion doesn't match the facts I see in real-time. YES I DO GET THAT MILEAGE. The Average on my car right now is 30.4
Reply
psych101 11:00AM (5/02/2006)
Chris, edmunds.com lets you load up all options. Premium package selection includes many of the popular options, so edmunds is counting some of the options twice. Adjusting for this, TMV becomes $33,368. Still expensive. And no doubt grossly expensive compared to your Malibu payments. And see, there's the rub: for people who don't want an SUV, there are many more less-expensive options than the Escape Hybrid.
I think, however, that Ford is getting the ball rolling in a good way. Americans do like them some SUVs, and hybridizing small cars and family sedans almost seems counter-intuitive in the face of this consumer preference for high-riding station wagons. I dislike admitting it, but Ford is actually doing this the smart way by addressing the most pressing preference first.
Reply
Michael Karesh 11:00AM (5/02/2006)
I suspect Psych101 assumed a longer term. 60 months is very common these days.
I actually find the 36 possible. My father in law averaged 33 on one tank and 35 on another when he drove his 3.4-liter Impala to Michigan last summer.
Reply
gbh 11:07AM (5/02/2006)
Unless you're buying a Viper or a Vette, who pays even 80% of sticker for a domestic?
People don't buy domestics without huge incentive packages. Other than the rabid Fordophiles, the Escape is not exactly gonna steal customers away from the other products in that segment.
There are inherent problem with sales, coupons, and rebates. If overused (like by the domestics) you dilute your brand image, by constantly reminding customers how overpriced the product is. You also teach people not to buy your product unless there's a rebate, because if there's always another sale just around the corner, you are a chump to buy using sticker as a basis.
Reply
Chris 11:08AM (5/02/2006)
Ben, you can drive with Me or you can read this or that? What you read is B/S, I don't need to sugar up the truth ... you just hate Malibu's but that engine has given me no problems, I have 30K on it already. Your opinion doesn't match the facts I see in real-time. YES I DO GET THAT MILEAGE. The Average on my car right now is 30.4
Reply
Ben 11:11AM (5/02/2006)
hmmm, so you AVERAGE 30.4, but you get 36 MPG in the CITY? Right...you must have one of those rare Hybrid Malibu's :) Lying POS...get out of the forum.
Reply
Ben 11:15AM (5/02/2006)
Chris said: "THANKS! I'll keep my 2005 Chevy Malibu that gets 36 MPG on the highway, where I travel, and 26 in the city."
You can't even get your own facts straight. So is it 26 OR 36 in the CITY? Idiot.
Reply
psych101 11:30AM (5/02/2006)
Chris,
"Psych101 ... where do you get those numbers?
Edmunds says the TMV on a BASE FWD is $28,415. You get no immediate cash benefit from the tax Credit, you apply for that next year. You still have to add State Tax, and for most the average is 7%. That brings the total to $30,404. At 0% for 60 months, the payment is $506. Many people don't like 60 months, and at 48 months the most basic FWD Escape Hybrid cost $633. let's not forget we still have to pay the insurance co. and for fuel."
Edmunds doesn't seem accurate, and I can't see the sources of their numbers. I'm using the base numbers available from Ford and calculating them with the actual mathematical formulas, not some web-based calculator that might not even be working right.
Anyway, so with state tax at 7% and not applying the $2600 rebate, I get monthly payments of $487. Still good.
Your frustration is probably stemming from the perceived implication that you should trade in your Malibu to get an Escape. The Malibu is a good 4-door sedan, while the Escape is a good mini-SUV. These automobiles are not in the same class. You find yourself wanting the Escape, but unwilling to pay the much higher associated costs. So you rationalize your purchase of the Malibu. Your rationale sounds fine to me!
Reply