Ford Motor Co.’s (NYSE: F) Lincoln MKX is supposed to be a foundation of the luxury division’s turnaround. So far, the plan has worked. MKX sales rose 51.1% in January to 2,052. This made it Lincoln’s best-selling model. However, Lincoln has started to offer aggressive incentives on the MKX, which brings into question the real demand for the crossover.
Management said while reporting Ford’s January sales:
Lincoln sales increased 8 percent, for the best start of the year since 2008. Lincoln sold 7,177 vehicles, and the all-new MKX posted a 51 percent increase with 2,052 vehicles sold. It was Lincoln’s best January for SUVs since 2001.
At the moment, one of the incentives for the crossover is a 0.9% annual percentage rate (APR) for 60 months. Not everyone can get the deal, but the restrictions do not seem too tight. That likely means that credit ratings may be an issue.
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One of the appeals of the MKX is that it is relatively inexpensive compared to other luxury crossovers, with a base price of $38,260. That barely makes it a luxury vehicle at all.
Luxury or not, Lincoln has started to provide incentive to move the crossover.
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