As a number of global supply chain constraints continue to hamper automotive production, Ford has announced its intentions to move toward more of a build-to-order business model moving forward. The automaker will maintain a lower level of inventory on dealer lots as well, and those vehicles will be limited in terms of configurations. This will in turn cut down on incentive spending and improve profitability, which benefits the automaker tremendously. And thus far, it seems to be working, as the automaker’s February sales report revealed that around one-third of new Ford sales have come from customer orders over the past seven months.
In fact, last month, Ford’s average transaction price hit yet another record high at $48,000, which is $4,100 more than one year ago. Across the entire industry, average new car transaction prices surpassed $47k for the very first time in January, while Ford’s average transaction prices rose 9 percent in 2021 and continue to climb.