Executive Cars Target Price analysis
Target Price: This month’s Analysis of new car incentives
The average cash Target Price discount has continued to fall across the executive car market and is currently at 8.7% or £3447 per car.
This represents a reduction of more than 14.5%, in relative terms over the last three months, and is a further example of how dealers have become better able to defend their trading margins by making the most of restricted vehicle supply and reduced pressure from car manufacturers to hit sales targets.
The competitive availability of a varied range of premium SUVs also means that private consumers wishing to buy executive cars are more likely to be specifically committed to their vehicle choice and more willing to accept a lower cash Target Price saving.
The average finance Target Price saving available across the segment means consumers can get an additional £2254 per car finance deposit contribution when buying using an average 4.1% APR manufacturer-backed PCP.
Volkswagen claims the top two positions for the highest cash Target Price discount, with a typical 19% or £5695 per car on Passat models and 15.3% or £5465 per car on Arteon variants.
Audi and Mercedes-Benz offer the next best savings with an average reduction of 9.4% (£3604 per car) and 10% (£4056 per car) on A4 and C-Class versions, respectively.
At the other end of the scale, consumers will struggle to haggle more than an average 3.3% cash discount when buying Alfa Romeo Giulia, Jaguar XE and Lexus ES variants.
Lexus dealers are currently offering the best overall PCP deal, at 1.9% APR with £2000 towards a customer’s deposit on IS models.