Ford slashes prices to combat soaring car costs and win buyers

Ford is pushing to make its vehicles more affordable as car prices continue to rise. The company has introduced new pricing options, including employee discounts and lower-cost leases. CEO Jim Farley has called affordability a key priority for the industry. The average price of a new car now sits close to $50,000—30% higher than in 2019. In response, Ford is rolling out more budget-friendly versions of popular models like the F-150 and Explorer. The company aims to offer some new vehicles at or below $40,000.

To encourage sales, Ford is extending employee pricing on nearly all new models until July 4. Lease deals are also available, with monthly payments ranging from $399 to $499. These moves come as the brand seeks to attract buyers facing higher costs.

Meanwhile, President Trump has announced a 25% tariff on European-made vehicles, adding pressure to the market. Farley did not address trade policy directly but highlighted competition from China’s growing auto sector. Ford’s latest pricing strategy includes more options under $40,000 and temporary discounts. The company is also expanding lease deals to ease the financial burden on buyers. These steps follow a sharp increase in new car prices over recent years.