Target Price Market Report
The average cash Target Price discount is down by more than 20%, in relative terms, over the last 12 months and by more than 30% since the start of the Covid 19 pandemic.
The supply issues facing the industry vary considerably between manufacturers and even between individual model ranges. This has significantly affected the levels of transaction price discount that salespeople are prepared to sanction, with wide variances between different dealers and dealer groups even on the same car.
This presents a confusing picture for consumers, who, unless they shop around, may face an increasing reduced-discount narrative from the dealer(s) they connect with.
Although cash transaction price discounts have consistently fallen during the last year, it is interesting to note that manufacturer support, in the form of customer savings payments and finance-based offers, has remained broadly stable over the same period.
The current all-segment average PCP APR and finance deposit allowance is 4.2%/£1535 per car, compared with 4.2%/£1538 per car 12 months ago.
This reinforces our belief that despite a definite downward trend in Target Price savings, plenty of opportunities remain to secure a reasonable cash saving and a still-generous manufacturer-backed finance offer when buying a new car.
With seven car segments showing an increased cash Target Price discount and seven segments revealing a reduction, the all-segment average currently remains unchanged at 6.4% or £2632 per car.
Buying using a manufacturer PCP reduces this figure to £2028, but consumers then gain an average £1535 per car finance deposit contribution.
Peugeot is the most improved car maker, in terms of raising the typically achievable cash Target Price discount, with a 2.2% increase across the range, up from 5.9% to 8.1%.