Target Price Market Report
Despite issues with supply, manufacturers continue to offer tempting Target Price discounts
The downward trend in average cash Target Price discounts is continuing because car manufacturing capacity is still struggling to cope with consumer demand.
Consumers can currently expect to haggle a typical 5.9% or £2405 per car saving when buying a new car. This is down by more than 17%, in relative terms, over the last six months, and shows no sign of improving until the car manufacturers can, or wish to, increase car production output and consumer demand reduces, possibly due to the frustration of having to either wait up to 12 months for a new car or buy an overpriced used car and/or with Government relaxations to holiday Covid rules encouraging people to buy holidays instead.
For most of the period following the Covid-19 pandemic manufacturers have been robustly supporting new car sales with generous finance-based offers. While this generally remains the case, we have noted some month-on-month changes that suggest this trend may be changing.
Ten of our fourteen vehicle segments have had average PCP APRs increase from 4.2% to 4.8% and the average finance deposit contribution has reduced from £1837 per car to £1578 per car across nine vehicle segments.
It has rarely been more important to consumers to sharpen their haggling skills in the showroom, because dealers have moved away from promoting and highlighting their best deals through advertising and third-party platforms. There are some good new car deals still to be done, but consumers need to refer to the latest Target Price data and stick to their negotiating position with salespeople.
Citroen is the most improved car maker, in terms of raising the typically achievable cash Target Price discount, with a 0.8% increase across the range, up from 10.3% to 11.1%.