Ford Sales Continue To Be Strong
On November 3, 2015, Ford announced that U.S. sales had grown 13% in October. Ford F-Series, Edge and Explorer all played key parts to the outstanding growth. Part of this growth in October can be attributed to October being a calendar month with five Saturdays. Saturdays are known as the busiest car sales day in the U.S. And for Ford, this was the company’s best October performance since 2004.
The overall average transaction price (ATP) for Ford-brand vehicles hit $34,600 in October, up a hefty $1,800 from a year ago. Jumps like this in ATP suggest that consumers are purchasing higher end options and more premium packages in their Ford vehicles. This shows a strong positive indicator for profitability in Ford’s North American sales.
The popular Ford F –Series played a key role in strong sales. The F-Series pickup line gained 12%, while overall F-Series sales were up just 3%. The ATP for the F-Series was $42,500 in October, up $2300 from a year ago. Interestingly enough, Ford actually reduced its incentives on the F-Series in October and still saw this record growth. Given that the F-Series is Ford’s best seller, that’s a very a positive sign for earnings.
Since the second quarter of 2015, Ford is generating strong profits on its line of SUVs. Like both Fiat Chrysler and GM, Ford has seen big jumps in its sales of profitable car-based "crossover" SUVs. Its newest models have done particularly well: An all-new version of the midsize Edge was released earlier this year, and the bigger Explorer SUV was given an overhaul for the 2016 model year.
Ford Edge sales rose 39% in October versus a year ago. The ATP rose an impressive $4300 and demand continues to be strong. In fact, the most important measure is the “turning” days on the Edge. The average “turning” days on the Edge is 22 days. “Turning” is an industry buzz word that means how many days it takes for a vehicle to sell from the moment it hits the lot. Anything under 30 days is considered very strong demand, tight supplies or both. And the Edge is not tight on supply.
The 2016 Ford Explorer could be considered the big swinger of October. Sales were up 30%. Over 90% of Explorers sold in October were the new 2016 model. The ATP was up $2800 from last year and the 2016 Explorer had a “turning” average of just 17 days.
So where does Ford go from here? Ford is launching its “Friends and Family” promotion this month. This promotion will give buyers a fixed, discounted price. Ford is going all out on this promotion. You can expect to see an aggressive advertising campaign. Even though some car industry analysts believe these incentives will cause losses, Ford’s U.S. Sales Chief, Mark LaNeve believes these heavy discounts will boost Ford’s overall level of incentive payouts and thus making the company stronger.
Take advantage of Ford’s “Friends And Family” by stopping in at Paso Robles Ford. Paso Robles Ford and their outstanding sales team will not only show you unsurpassable customer service, but they will help ensure you drive off, in right vehicle for you. Paso Robles Ford is conveniently located at 2401 Oakwood St, Paso Robles, CA 93446.
Our goal, at Paso Robles Ford, is to provide, you the customer, the BEST possible experience. Our sales team has a strong commitment to our customers. We have many years of experience in satisfying all our customer’s needs. Whether you need to purchase, finance or service a new or pre owned Ford, Paso Robles Ford, will show you why they are number 1 in customer service. All of us at Paso Robles Ford looks forward to serving you!