The base price for Ford‘s Focus Electric in 2012 was $39,995 and now Ford’s website features a list price of $37,995 for “cash-only” sales and a hefty $10,750 discount on “Red Carpet leases” for delivery by April 1st.

In addition, the monthly payment for a 30-month lease with 10,500 miles per year has dropped from $350 to $285 and $930 up front, and if the car is purchased through Ford Motor Credit, Ford offers a 1.9 percent financing rate.

Ford is offering this great discounts because, according to a report from The Detroit News, last year sales of Ford’s all-electric compact hatchback have been abysmal. Ford produced a total of 1,627 units in 2012, but only managed to shift 685 of them.

“We certainly are not in a situation where we have to completely discount but we do have to respond to competitive pressures”, commented Ford spokesman Wes Sherwood, adding that, “we’re not anywhere close to where Nissan has gone with the Leaf”.

No matter what way you look at it, the asking price is simply excessive for a compact hatchback by a mass-manufacturer, electric powertrain or not. The expensive technology incorporated in the Focus Electric might be the reason the price is dictated so high, but buyers usually vote with their wallets, and those in the market for a 40k car, if anything are spoiled for choice.