2014 Energi MSRP reduced by $4k?

[Kybuck]

I've been debating a Fusion Energi purchase for the last couple of weeks... today, when looking at window stickers online, I noticed that the base MSRP for both 2014 Energi models appears to have dropped by $4,000 (SE is now $34,700 and Titanium is $36,500 plus destination).  It doesn't look like the price change has taken effect on all of Ford's websites or all of the dealer's websites, but every window sticker viewed online now shows it (including ones that showed the old MSRP a few days ago).

 

Example 2014 SE window sticker

 

Example 2014 Titanium window sticker

 

I'm wondering whether this is an actual price change that takes effect immediately, or if someone jumped the gun on a change that's supposed to happen in January.

[jza80]

I see that too. I wonder if this has something to do with congress not renewing alternative energy incentives. The rebates have also dropped to only about $1000, plus the lease conquest $1000..

[Kybuck]

I was thinking it may also be due to Chevy reducing the Volt MSRP by $5k, Comparison shopping a $38k+ Fusion Energi vs. a $35k Volt may not seem like a huge difference, but the gap is significantly widened when considering the Federal Tax rebate difference.

[jza80]

That makes sense. I'm not exactly sure about the tax credit issue- whether it will automatically roll over or not.

 

The pricing now is decently compelling, figure $5K off when you consider the current rebate and price reduction. Some dealers are discounting 2014 Energi's up to $4k as well. Plus another $4k for the tax credit and whatever local/state incentives that may be available.

[shaggy314]

I've heard from a Ford salesman the Energi is about to get a $4k haircut on MSRP to match the Volt's $5k one... The federal rebate, I thought, was tied to quantity of cars and not annual funding.

Edited January 5, 2014 at 05:57 PM by shaggy314

[SteveEnergi]

This shows you how much they were marking up the cars.  Essentially they marked up the cars the "tax credit", now that the tax credit has expired, chevy and now ford dropped the price to cover what was lost.  So they could have MSRP'd them this year $5k and $4k less.  You can't really blame them though.

[TX NRG]

now that the tax credit has expired

Are you sure??

 

Ford is only a little more than 1/10th of the way to the 200,000 cars per manufacturer cap when the tax credit is to start being phased out. Chevy is about 1/4th of the way there.

 

http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-%28IRC-30-and-IRC-30D%29

[jza80]

 

That's a good question. The credit is still on the books but does it require action from congress to fund it? If the credit is still in effect, and Ford drops the price $4k, then I may be an owner in a couple of months once the "normal" rebates kick back in!

[SteveEnergi]

I'm not sure, now. I believe I read that but can no longer find the reference. According to the irs reference it's still available but I thought it didn't have funding.

[jza80]

The main Ford website now indicates the $4K lower MSRP.

Edited December 30, 2013 at 04:16 AM by jza80

[jsamp]

Funny how things go... 1-1/2 years ago before they announced pricing I was predicting the Fusion Energi to start at ~$35K for the base model.  I was shocked when it came out at almost $39K.  Seems Ford is now coming around after seeing how well the incentives worked at increasing sales volume this past fall.

 

Now my only problem is that I no longer have the $ to buy one :(   Maybe later this year...

[SD Diver]

Hmm...  So much for resale value...

[Fat Fusion]

Hmm...  So much for resale value...

 

Are you planning on selling yours?  My plan is to drive mine into the ground.  I rarely ever sell or trade in a car so it'll be interesting to see what the end-game scenario is with my Fusion.  My other two cars are collectible and my truck I'll probably have forever as well, but the Fusion won't have much value in the end I suppose.

[jza80]

I had a chat session with a Ford CR rep today and I asked about the price drop. Apparently the new price only applies to new builds and orders, and does not retroactively apply to existing dealer stock. We'll have to see how long that plan lasts. Good luck selling an older build for the old MSRP once the word gets out about the new price.

I does stink for existing owners, for sure.

[Kybuck]

I had a chat session with a Ford CR rep today and I asked about the price drop. Apparently the new price only applies to new builds and orders, and does not retroactively apply to existing dealer stock. We'll have to see how long that plan lasts. Good luck selling an older build for the old MSRP once the word gets out about the new price.

I does stink for existing owners, for sure.

 

I don't think that's true... I ended up buying my Energi on the 22nd (the day after I noticed this price drop), and before I even had to bring it up, the salesman mentioned that the window stickers were out of date, the price had dropped by $3-4k, and they needed to print new window stickers.  I also qualified for the X-Plan, and the X-Plan pricing reflected the drop (the old X-Plan pricing was above the new MSRP, so it was pretty obvious).  I also saw the invoice print-out with the X-Plan pricing at the bottom.  Also if it wasn't retroactive, I would expect the Ford window sticker websites to be smart enough to only reflect the new lower MSRP on newly built models.  To further support it, the MSRP on my purchase contract reflected the new lower X-Plan MSRP (it wasn't shown as a rebate, etc. like the $500 ford incentive and $750 coupon were).

 

Regarding resale value, many dealers were already putting at least a couple grand in "dealer cash" on the vehicles, and Ford's December incentives (prior to this) was $4500 for a 2013 or $2500 for a 2014.  When the MSRP changed, the incentives dropped to $500 for a 2014.  I don't expect that this change impacted the actual out-the-door pricing that anyone paid for a 2014 model by more than $1-2k at most.

 

Ford also may be concerned with the recent surveys that "predict" PHEVs will retain less of their value after 5 years.  The surveys typically only look at MSRP, and don't reflect incentives, dealer cash, or even government/tax rebates.  By reducing the MSRP (with fewer incentives/cash offers), the retained value after 5 years will end up being a higher percentage, which could make a difference to comparison shoppers.

Edited January 4, 2014 at 05:22 PM by Kybuck

[SD Diver]

Just came back from the San Diego auto show, and spent some time at the Ford booth.  Was looking at a new Titanium Energi with all the options.  Its sticker was over 1K less then mine, and it had the auto park, cooled seats, adaptive cruise, and a couple other things that mine doesn't have.  Oh - and the aluminum pedals that I thought I was getting but didn't. Well, the rep there had no idea about the price drop, and the plastic info panel showed the old price while the sticker showed the now.  No, I don't plan on reselling my car any time soon, but the price drop does seem irritating.  Even the rep at the auto show said "Ouch - i'd be pissed".  Oh well.  Oh - not to mention that my $750 "coupon" arrived 3 days after I bought the car (too late according to the dealer).

 

Oh well.  Time to end the rant!  :-)

[Fat Fusion]

Yeah I'd be chapped too.  I suppose early adoption has something to do with it as well.  Maybe the Fusions will continue to drop in price as they sell more and more of them.  Who knows.  

 

I paid just under MSRP on my Mustang and a LOT of people paid $5-$10k over MSRP for the same car I bought at the same time at different dealerships.  As my dad likes to say, "you pay what you pay, and you get what you get.  You don't get what you pay for."

[jza80]

I don't think that's true... I ended up buying my Energi on the 22nd (the day after I noticed this price drop), and before I even had to bring it up, the salesman mentioned that the window stickers were out of date, the price had dropped by $3-4k, and they needed to print new window stickers.  I also qualified for the X-Plan, and the X-Plan pricing reflected the drop (the old X-Plan pricing was above the new MSRP, so it was pretty obvious).  I also saw the invoice print-out with the X-Plan pricing at the bottom.  Also if it wasn't retroactive, I would expect the Ford window sticker websites to be smart enough to only reflect the new lower MSRP on newly built models.  To further support it, the MSRP on my purchase contract reflected the new lower X-Plan MSRP (it wasn't shown as a rebate, etc. like the $500 ford incentive and $750 coupon were).

 

Regarding resale value, many dealers were already putting at least a couple grand in "dealer cash" on the vehicles, and Ford's December incentives (prior to this) was $4500 for a 2013 or $2500 for a 2014.  When the MSRP changed, the incentives dropped to $500 for a 2014.  I don't expect that this change impacted the actual out-the-door pricing that anyone paid for a 2014 model by more than $1-2k at most.

 

Ford also may be concerned with the recent surveys that "predict" PHEVs will retain less of their value after 5 years.  The surveys typically only look at MSRP, and don't reflect incentives, dealer cash, or even government/tax rebates.  By reducing the MSRP (with fewer incentives/cash offers), the retained value after 5 years will end up being a higher percentage, which could make a difference to comparison shoppers.

 

 

That makes more sense that what I was told...If a 2-tier pricing system were in place the only way dealers would be able to sell their existing inventory would be if big incentives were in place, and that does not seem to be the case.

Edited January 5, 2014 at 04:29 PM by jza80

[willsyaya57]

I am wanting to get the best price on a new FFE Titanium, using X-plan with MCA membership, any available tax incentives, rebates and coupons. This forum has been very helpful.

My CPA tells me the 2013 and 2014 tax credit of $4007 applies if the vehicle was purchased in 2013. Is this true, and I too late to catch this incentive?

I'm getting a sinking feeling about this....

[Russael]

I posted an answer to this in another thread, but if you did not buy the car in the 2013 calendar year, you cannot claim the tax credit for the 2013 year (the car model year is irrelevant).  If you buy it in 2014, then you'll need to wait until tax time next year to get the credit.  If you do not want to wait on the credit, then leasing is an option - they are supposed to roll that credit in to your lease agreement, and then you can buy the car at the end of your lease, or turn it in for something else.  Leasing is also useful if you don't make enough money or fall in to a tax bracket that puts your federal tax bill under 4007 for a year.  If Federal says you owe 3500 for a calendar year and you claim the tax credit, they will only give you back 3500, and the other 507 is lost.

[Kybuck]

If your federal tax bill is under $4007, you may want to rethink the purchase of a $35k+ vehicle.  Obviously there are some potential exceptions (retirees, etc.), but probably not a bad general rule of thumb.

[willsyaya57]

Thanks, Russael, for that pearl. :-) if I don't make enough money to owe the government more than $4007 next year, I may have to live in the car. Then, I really will need more trunk space!

[Russael]

In all honesty, I'll be pretty close to that.  I saved for a very long time in preparation for the purchase of a car like this, long before it was even announced, so I could put down a hefty down payment.  From some of the other posters and showing the other vehicles they have (Boss 302, Audi R8 come to mind), I'm quite sure I'm on the very low end of the income scale. :)