Target Price Market Report – February 2021
While there has rarely been such a level of consistent uncertainty affecting the direction of new car retailing, there are tentative signs that the average cash Target Price discount is starting to recover some of the 22.8% relative terms drop in value seen during the Pandemic.
Consumers can currently expect to haggle a typical 7% or £2730 per car saving when buying a new car, which has seen a five-month continuous decline in the typically available cash Target Price saving come to an end.
This represents £14.8M worth of achievable savings if all the cars in our Target Price inventory were bought at their respective Target Prices.
Industry talk of manufacturers re-imposing challenging sales targets, and evidence of manufacturers such as Citroen, Peugeot and Renault re-introducing significant cash-sale tactical bonuses all point towards dealers possibly moving back to having to scramble for orders and increase the level of deal giveaway value they are prepared to sanction.
Many dealers wish to avoid this and hope that the pandemic-induced period of lower cash Target Price discounts will become embedded in consumers’ minds, along with a greater willingness to engage in online buying, which gives manufacturers and dealers greater control of standardising and stabilising discounts.
Finance Target Price support from manufacturers has remained broadly constant at a typical PCP APR across all segments of 4.3%, and an average finance deposit contribution of £1512 per car. However, this level of finance deposit contribution is 11.9% down, in relative terms, compared with this time last year.
Suzuki has recorded the highest month-on-month increase in the average cash Target Price saving, with the typically achievable showroom discount across the model range up by 5.5% to 9.5%.
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