The price of the 2014 Ford Focus Electric will be dropping by $4000 from the prior model year. This will put the base price of the vehicle at $35,995 when it hits dealer showrooms in just a few more weeks.
The cut comes as the industry adjusts to the fact that most people simply aren’t willing to pay an extra $10,000 to $15,000 for vehicles that are affordable and fuel efficient in their gas-fueled versions. Even though some buyers qualify for federal tax credits of up to $7,500, they still can’t justify the cost.
Although hybrids are becoming more popular, only about 1% of US sales are for plug-in hybrids and electric cars as they just aren’t seeing the same acceptance as hybrids. Not only do hybrids come with a much lower premium, they don’t force consumers to rely on a charging network that is still very much in development.
Ford isn’t the only one to feel the pressure to reduce prices on its electric vehicles. Earlier this year, Nissan announced an 18% drop in price for the Nissan Leaf which brought its sticker down to $28,800.
Nissan also offers a 36-month for $199 a month and no-interest loans to entice buyers into making the jump to an electric vehicle. This makes the Nissan Leaf very competitive with a price that is about $7,000 less than the Ford Focus Electric, a faster charger and a better warranty.
Honda is now apologizing for a shortage on its electric offering, the Fit Electric, after they improved their leasing terms from $389 to $259 with no money down, no mileage limit and a free in-home charger.
Even General Motors has gotten into the act, cutting the price of the Chevy Volt by $4,000. They also improved their lease terms to include a $2,399 down payment with $269 a month for a 36-month lease.
With pure electric vehicles remaining something of a niche market, consumers can expect to see continued price drops and incentives coming from manufacturers.
Nicole Wakelin fell in love with cars as a teenager when she got to go for a ride in a Ferrari. It was red and it was fast and that was all that mattered. Game over. She considers things a bit more carefully now, but still has a weakness for fast, beautiful cars. Nicole also writes for NerdApproved and GeekMom.