Target Price Market Report – February 2021
Segment Analysis: Small cars
The average cash Target Price discount across the small cars segment is currently 7.1,% or £1427 per car. This represents a small increase over the previous month and mirrors the general trend seen across our Target Price inventory.
The September 2020 new car registration period did see an increase in average transaction price discounts to 7.5%, but the subsequent disruption in the following months caused by lockdown uncertainty again resulted in dealers prioritising trading margin over sales with typical Target Price savings dipping below 7%.
Five models are driving the higher end of the average Target Price discounts, with the Seat Ibiza at 15.8% (£3017 per car) Nissan Micra at 15.1% (£2890 per car) and Citroen C3 at 13.1% (£2251 per car), while Renault’s Zoe and Clio variants can typically be purchased at a 12% (£3807 per car) and 11.5% (£2187 per car) saving respectively.
At the lower end of expected showroom savings are models such as Dacia Sandero, MG3 and Mitsubishi Mirage, where low sales targets and restricted allocation from the manufacturers allows dealers to restrict discounting.
Lower Target Price cash discounts on models such as the Kia Rio (3.5%) Mazda 2 (4%) and Toyota Yaris (3.8%) are compensated for with manufacturer campaign offers with an average £1719 finance deposit contribution on the Rio, £1750 on the 2 and an interest-free PCP offer when buying the Yaris.
Finance Target Price offers are included across more than 65% of the small car market, with a typical PCP APR of 4.2% that is supported with an average £853 per car finance deposit contribution. However, this deposit contribution figure is down 11.9%, in relative terms, month-on month.
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