Target Price Market Report
Segment Analysis: Large SUVs
The average cash Target Price discount across the large SUV segment has fallen to its lowest ever level, and is currently 3.8% or £1727 per car.
This represents a drop of more than 32%, in relative terms, over the previous year and highlights how dealers have been able to take maximum advantage of the trading conditions caused by the semiconductor supply crisis, and retain significantly increased profit margins in what was already one of the most profitable of the SUV sub-segments.
Most of the reduction in Target Price savings has occurred on prestige and electric large SUV variants, with zero discount on Audi Q4 -E-Tron and Land Rover Defender models, and just an average 2.8% saving on Mercedes GLC and Volkswagen ID.4 variants.
There are better deals to had on volume market models, with Seat, Jeep and Citroen dealers willing to typically offer 9.8% (or £3534 per car) on Tarraco models, 9.5% (or £4758 per car) on Wrangler variants and 8.4% (or £2218 per car) on C5 Aircross versions.
After allowing for dealer contributions towards manufacturer’s finance offers, the cash Target Price discount is adjusted to £1429 per car. When customers buy using a manufacturer-backed PCP deal, at an average 4.7% APR, they can take advantage of an average £1244 per car finance deposit contribution. This means the total (cash and finance) average Target Price saving available across the large SUV segment is £2673 per car.
Car manufacturers are continuing to support dealers’ sales efforts with finance incentives, which include average finance deposit contributions per car of £3250 on Volkswagen Tiguan Allspace models, £2500 on Volvo XC60 versions, and £2250 on Skoda Kodiaq variants, and an interest-free PCP option across the Ford Kuga range.