Ford Putting Its Foot Down on Mustang Mach-E MSRP

Opposite of Markup

Everybody loves a hotly anticipated new vehicle model, including automakers. But there's just one problem with high demand for any product, of course - it causes sellers to want to raise prices. That's been true in recent times with vehicles like the 2020 Shelby GT500, which is being sold with some pretty ridiculous dealer markups. But apparently, Ford is actually worried that dealers might sell its new Mach-E below MSRP, not above it, according to a document obtained by CarsDirect.

Photos: Ford Motor Company

No False Advertising

Ford apparently sent a bulletin to dealerships telling them not to advertise the Mach-E below MSRP. Their reasoning behind this move, according to the memo, is part of an effort to "be competitive in the battery electric vehicle space by transacting in the way customers want to transact." 

Photos: Ford Motor Company

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Important Distinction

Tesla has been known to employ some questionable practices that tout artificially low prices, according to CarsDirect, so this move is obviously aimed at preventing that. But it's important to keep in mind that this may prevent dealers from advertising below MSRP, but not actually selling a Mach-E for less.

Photos: Ford Motor Company

>>Join the conversation about the Mach E right here in the Mustang Source Forum!

Playing Nice

Thus, buyers can still negotiate a good deal, although that depends on the demand the Mach-E will face when it hits dealerships. Regardless, Tesla dealers don't negotiate on pricing, so this is a big advantage for Ford. And if dealers play by the rules, Ford is also offering some pretty enticing incentives for them.

Photos: Ford Motor Company

>>Join the conversation about the Mach E right here in the Mustang Source Forum!

Methods of Compensation

Ford is using a method it calls "e-Invoice" to keep the Mach-E's invoice and MSRP prices identical. And they're going to compensate dealers for cooperating in three different ways. Firstly, Ford will give dealers an allowance for every vehicle delivered. Which could obviously add up quite quickly for some high volume dealerships.

Photos: Ford Motor Company

>>Join the conversation about the Mach E right here in the Mustang Source Forum!

In Compliance

Secondly, Ford will reward dealers for complying with the model's pre-imposed advertising rules. And lastly, Ford is going to ensure that dealers maintain proper certification to sell and maintain electric vehicles. If they don't cooperate, it seems that Ford could pull this certification if they so choose, though that isn't specifically mentioned in the memo.

Photos: Ford Motor Company

>>Join the conversation about the Mach E right here in the Mustang Source Forum!

Supply and Demand

Of course, none of this stops dealers from marking a Mach-E up or down, it just sets a standard for advertised prices. So it remains to be seen how the buying experience will go. It all really boils down to what sort of demand the Mach-E will enjoy when it hits the market. And that, at least right now, is virtually impossible to predict.

Photos: Ford Motor Company

>>Join the conversation about the Mach E right here in the Mustang Source Forum!

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