Target Price Market Report
While it has become harder to negotiate high cash discounts throughout the Covid-19 pandemic, it is not impossible to do so.
Although it has become significantly harder to negotiate high cash discounts throughout the Covid-19 pandemic period, it is not impossible to do so.
While the most organised dealers who have the most tightly controlled sales processes in place are successfully creating a new, low-discount expectation environment within showrooms, there are good deals to be had if consumers rely less on what they are increasingly being fed via dealer’s and manufacturer’s online touchpoints, and more on old fashioned haggling and playing dealers off against each other.
Some car makers, such as Ford, Jaguar and Land Rover are having significant problems in boosting vehicle production, and in these instances the typically achievable cash Target Price discounts will naturally remain suppressed.
But many other manufacturers have either found workarounds to help ease raw material shortages or have reduced elements of specification choices available to buyers and are seriously engaged in wanting to get cars sold.
While dealers will not want to overtly demonstrate how far they are willing to go to close new car orders, our research has found that a serious consumer who is ready to buy does have more bargaining power than might first seem apparent. Indeed, we have seen a marginal month-on-month increase in the all-segment average cash Target Price discount to 6.4%, or £2608 per car.
This figure dips by just over a fifth, to £2044 per car when a manufacturer’s PCP deal is used to purchase, but this is offset by an average £1631 per car finance deposit allowance that boosts the total cash and finance Target Price saving to £3675 per car.
Volvo is the most improved car maker, in terms of raising the typically achievable cash Target Price discount, with a 1% increase across the range, up from 6% to 7%.