Ford’s Blue Tag Pricing Pleases Customers

It seems that car buyers are responding positively to Ford’s extension of its `Blue Tag’ pricing policy to cover the entire range because despite an overall decline in the July market, Ford’s market leadership remained unchallenged.

In fact, it actually took a bigger retail market share last month, up one per cent from 11.1 to 12.1 per cent with almost 18,500 registrations. The Fiesta was the country’s favourite among private buyers with the Focus taking the runner-up spot.

Ford always does well but its appeal has been boosted by the Blue Tag pricing. You may recall that back in April it reduced the price of its bigger cars such as the Mondeo and S-MAX by around 15 per cent. That was an exercise to see if customers were happy with reduced room for discounts and bargaining but having a lower list price, and to see if dealers were happy with lower margin but increased volume.

They were and we are and so Blue Tag has now been extended across the range with an average price cut of around 11 per cent. It means, for example, that a Ka Studio comes down to £7,995 from £9,360, the Fiesta Studio to £9,995 (£11,645) a Focus Zetec from £15,545 (£18,345) and the Kuga Titanium compact SUV from £22,495 (£23,795).

This is good news for company car buyers because their Benefit-in-Kind tax bill is assessed on the car’s list price, not the eventual transaction cost. It’s good news for retail buyers who don’t have to haggle in the showrooms and it’s good news for everyone when VAT goes up next January because it will be starting from a lower price.

Perrys is a franchised Ford Dealership.