Target Price Market Report
Segment Analysis: Family SUVs
The average cash Target Price discount in the family SUV market has fallen by 20%, in relative terms, over the preceding 12 months and is currently 6% or £2052 per car.
That means dealers are now able to retain an additional £282,128 profit if all the models in the family SUV inventory were sold at their respective Target Prices.
This is a significant shift in the typically achievable savings within showrooms, because family SUVs were usually one of the SUV segments where consumers had a good chance of securing higher discounts.
As quite a crowded segment, consumers could take advantage of the competition between family SUV models when looking for great deals. But with some dealers now claiming that they have more enquiries than they need, salespeople are reducing the discount availability and taking orders from people who really do want to buy, even at a much lower discount.
After allowing for dealer contributions towards manufacturer’s finance offers, the cash Target Price discount is adjusted to £1541 per car. When customers buy using a manufacturer-backed PCP deal, at an average 4.3% APR, they can take advantage of an average £1342 per car finance deposit contribution. This means the total (cash and finance) average Target Price saving available across the family SUVs segment is £2883 per car.
Jeep dealers are offering the best average cash Target Price discounts with 17.3% on Compass versions, followed by Renault with a typical 15% saving on Kadjar variants, while SEAT buyers can pick up an average 12.3% discount when purchasing Ateca models.
Peugeot offers the most generous finance Target Price support, with an average £2722 per car finance deposit contribution on 3008 models, followed by Kia with a corresponding £2500 per car on Sportage variants and £2198 per car on Hyundai Tucson versions.