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Cato: I'm going to argue for the Ford Edge crossover wagon. It is a heck of a deal if you need a big, tall, people-mover.
Vaughan: Cato, I'm shocked. You're recommending a Ford? I can guess the reason — show me the money!
Cato: Correct. Look at the most obvious part of the deal on the Edge: 0.0 per cent financing for up to five years if you buy. If you lease, Ford will do the deal at 1.7 per cent for two years and waive the security deposit, too.
Vaughan: Most people lease the Edge. The Power Information Network data below says 55 per cent of Edge drivers are leasing.
Cato: That is to cut the monthly payment, which as you can see from the PIN data shaves about $100 a month off the monthly payment.
In this case, though, I would argue against leasing for anyone who can afford to buy outright. I'll explain why in a minute.
Vaughan: Leasing aside, that PIN data points to a huge problem for Ford. The Edge is a pretty good product if you need a big five-seater, but it is not pulling in owners of other brands.
Cato: Look at the top models most often traded in: Ford Windstar, Ford Focus, Ford Explorer. Ford, Ford, Ford.
Vaughan: You don't expect Toyota owners to bother shopping Fords, do you?
Cato: They should when the product is right. And the Edge is a small bit of light at the end of the tunnel for beleaguered Ford, which as you know has mortgaged everything to fund its turnaround plan.
Vaughan: Look at the hole Ford has dug itself. Losses in 2007: $2.7 billion US. Market share in the United States last year was down to 15.8 per cent, from 17.5 per cent in 2006. And Ford expects more market share losses this year.
Cato: It's a mess, for sure, but I know you like to shop distress sales when the value equation is right. A mess like this offers opportunities for buyers. The Edge is a good product from a troubled company, so I recommend it as a good deal.
Especially when you consider that in 2007 Ford made substantial headway at improving its reputation for reliability. Both Consumer Reports and J.D. Power and Associates praised Ford for making real progress on the quality front.
Vaughan: Right. The head of auto testing at Consumer Reports, David Champion, says Ford vehicles may lack "charisma," but the quality is good.
Cato: That, of course, props up the resale value. J.D. Power says its research shows that vehicles with strong dependability may retain up to an extra 15 per cent of their value after three years.
Vaughan: So let's recap: The Edge, which starts at $32,999, comes with free financing for up to five years. And if trends continue, the Edge will be a segment leader in terms of retained value after three or four years.
Cato: For those reasons I like this deal and anyone shopping for a big wagon should look at it seriously.
Vaughan: Right, kick 'em when they're down. Take the free money and bargain hard on the price. It's capitalism and even Toyota owners can see the logic in that.
2008 Ford Edge
Buyer's Age Range:
- 16-34 years: 15.4%
- 35-54 years: 51.3%
- 55+ years: 33.4%
Gender ratio:
- Female: 29.3%
- Male: 70.7%
Type of sale:
- Cash/non-dealer financing: 8.4%
- Finance: 36.3%
- Lease: 55.2%
Most popular colours
- Black
- Silver
- Blue
Vehicle price: $38,069 (does not include taxes, license or title fees)
Days to turn: 32
Trade ins: 25.6% (does not include lease returns)
Top three trade ins:
- Ford Windstar
- Ford Focus
- Ford Explorer
Average monthly payments: (includes PST & GST)
- Lease (36 month term): $615
- Lease (48 month term): $598
- Finance (60 month term): $693
Source: Power Information Network
