Ford likely to cap prices for 2009

* More price hikes 'unlikely' * Discounts are up, too * VAT cut coming to an end, though...

Ford likely to cap prices for 2009

Ford says that further price rises are 'unlikely' this year.

Despite three price increases already this year two before the scrappage scheme started in May and one after a Ford spokesman said further rises were 'unlikely' during the remainder of 2009.

At the end of 2008, a Focus 1.6 Zetec five-door had a list price of 16,145, but today the same car costs 17,695.

Ford blames the price hikes on the exchange rate, with the pound falling in value against the euro. At the start of 2009, a pound was worth just 1.

The exchange rate between the two currencies has now stabilised leading to the view that further price rises won't be necessary this year.

The good and the bad news
The bad news, however, is that VAT is scheduled to revert to 17.5% in 2010, so prices of all cars will rise by at least 2.5%.

The good news is that while Ford's list prices have gone up, discounts at least for the Focus have increased, too. Our Target Price researchers recommended a 2664 discount on the 1.6 Zetec at the end of last year, but now say that you should aim for at least 3050 off the car.