Target Price Market Report
Segment Analysis: Family Cars
Family cars were once the poor relation of small and family SUVs, and had to fight for market share by being far more aggressive with discounts.
This has now changed due to increased price competition among the burgeoning range of SUV models, a more attractive range of cars and specifications options within the family cars segment, and supply issues caused by the global semi-conductor chip shortage.
This means that consumers can currently expect to haggle a typical 5.3% or £1536 per car cash saving when buying family cars.
That is a fall of more than 14%, in relative terms, over the last quarter, which is a steeper decline in the average cash Target Price discount than the corresponding all segment figure (11.7%).
After accounting for dealer contributions towards manufacturer’s finance offers, the cash Target Price discount is adjusted to £1363 per car. When customers buy using a manufacturer-backed PCP deal, at an average 4.2% APR, they can take advantage of an average £1065 per car finance deposit contribution. This means the total average Target Price saving available across the family cars segment is £2428 per car.
Renault dealers are offering the best average cash Target Price discounts with 12.6% on Megane variants, followed by Seat with a typical 11% saving on Leon models, while Nissan buyers can pick up an average 8.5% discount when purchasing Leaf versions.
Peugeot offers the most generous finance Target Price support, with an average £5075 per car finance deposit contribution on 308 models, followed by Mazda and Alfa Romeo.