Analysis of new car incentives – September 2018

Target Price September – Analysis of new car incentives

• It’s not often that UK franchised dealers get a run of good news, but the recent WLTP emissions test changes have allowed many to shift plenty of pre-WLTP stock during August and use the production bottlenecks caused by WLTP to reduce discounts during the September numberplate change.

• The average Target Price discount has dipped to 8% (£2541 per car) as a result, but there has been a 21% fall in new car registrations.

• These circumstances will sustain dealer profits via improved margins, as will switching buyers into nearly new cars, but car makers will want to boost registrations.

• That manufacturers’ finance incentives remain at a six-month average high of 4.2% APR/£1413 deposit contribution is evidence, and we expect their fourth-quarter finance campaigns to strengthen further in an effort to boost registrations.

• The largest Target Price discounts are available on MPVs (11.4%, or £3097 per car) estates (9.6%, £2894 per car) and luxury cars (9.4%, £5417 per car).

• The smallest discounts are found among small and large SUVs, hot hatchbacks and sports cars, at a typical 5.9%.

• Renault, Smart and Citroën are the most generous, their Target Price discounts averaging 13.3%, 13.2% and 13% respectively.

• Family car buyers will find the highest numbers of 0% APR PCP deals (29% of models), while luxury car PCPs provide an average £3978 deposit contribution.

Target Price is researched by What Car?’s team of mystery shoppers. To find out more, please contact