Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

New Ford Models Will Retain Value

October 6, 2004

DETROIT – Ford Motor Co.’s new Five Hundred sedan and Freestyle crossover vehicle will hold their values at the highest levels of any Ford cars in recent years, according to a report last week in the Detroit News.The Automotive Lease Guide estimates the Five Hundred will retain 48 percent of its value after three years. The crossover minivan/SUV Freestyle will retain 50 percent. By contrast, a 2005 Taurus will only hold 30 percent of its retail value.Ford says the ALG estimates - which also boost the 2005 Mustang's residual value to 49 percent, 8 points better than its predecessor - vindicate its strategy to limit lower-margin fleet sales to generate more profits in the retail market.The trade-in record of Ford cars is bleak largely because the automaker flooded rental fleets with the Taurus, according to the Detroit News story. The strategy raises sales, but lowers residual values.The base retail price for the Five Hundred without options and destination charge is $22,145, according to The invoice price starts at $20,300. Edmunds lists the MSRP of the Freestyle at $25,595, and $22,870 at invoice.
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