Luxury SUV Target Price analysis
Target Price: This month’s Analysis of new car incentives
The average cash Target Price discount across luxury SUVs has been slowly increasing over recent months and is now 6.9%, or £4774 per car. Finance Target Price incentives are also up month-on-month, with a 10.5% increase in the average finance deposit contribution (up from £2568 to £2840), linked to a PCP APR that is down from 0.1% to 4.7%. This means that consumers can take advantage of total Target Price savings of £7613 per car when buying in this market.
This trend for higher Target Price savings is repeated across two of the other three SUV segments (small and family) with only large SUVs bucking the trend. With so many models within the various SUV segments now competing, it is unsurprising to note that transaction price discounts and manufacturer-backed finance offers are rising to attract consumers’ attention.
There is a long-held strategy of prestige vehicle manufacturers of wanting to incentivise sales without obviously distressing their brand values by locking the incentive money into the PCP finance deal rather than allowing excessive list price discounting. Our latest data reveals that finance deposit contributions are available on 80% of the cars within the luxury SUV segment, compared with just 20% of cars being supported with a manufacturer’s direct cash incentive.
The best average cash Target Price discounts are available from Mercedes-Benz, BMW, and Audi dealers, with 11.7% on GLE models, 8.9% on X5 variants and 8.8% on Q7 versions. Volkswagen is offering the best overall finance deal, with a 0% APR PCP that comes with a £2250 per car finance deposit contribution on Touareg models.