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Ford Mustang Mach-E Has A Very Unusual Price Strategy

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You won't be seeing dealers advertising Ford Mustang Mach-E discounts.

Despite its controversial name, demand for the Ford Mustang Mach-E appears to be high, as the limited First Edition has already sold out. That means there are now four trims to choose from: Select, California Route 1, Premium, and GT, with the base Select trim starting at $43,895. Orders require a $500 deposit.

First deliveries for the Mustang Mach-E won't start until late 2020, but CarsDirect reports that Ford is taking an unusual approach to dealer advertising. Unlike every other Ford model, the Mach-E won't be advertised below MSRP.

Front View Driving Ford
Rear View Driving Ford

Ford says the move is meant to "be competitive in the battery electric vehicle space by transacting in the way customers want to transact" rather than encourage crazy dealer markups. In other words, you won't be seeing dealers advertising deals and incentives for the Mustang Mach-E.

These deals can be misleading as they are often only available in specific locations. The new rules also only apply to advertised prices, not selling prices, so it should still be possible to negotiate a deal when buying a Mustang Mach-E at a Ford dealership. This isn't possible with Tesla models as all purchases are made online, so this could give Ford an advantage over the Tesla Model Y.

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The Mach-E has a unique policy that rewards dealers for not advertising the electric SUV below MSRP. Ford says the policy will protect the Mach-E's brand image as well as dealer margins. To achieve this, Ford is using a concept called an "e-Invoice" that will result in the Mach-E's invoice and MSRP prices being identical.

Ford will then compensate dealers with three different types of allowances. The first involves an allowance for every vehicle delivered, while the second rewards the dealer for complying with advertising rules. The last one ensures the dealer remains properly certified to handle electric vehicles.

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Rear View Driving Ford

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