Target Price market report

Segment Analysis: Luxury SUVs

The average cash Target Price discount has been slowly recovering after taking an 11.3%, in relative terms, drop six months ago and is currently 6.4% or £4608 per car.

The best cash discounts can be found at Volvo, Audi, and Lexus dealers with a typical 8.7% (£5518 per car) on XC90 models, 8.6% (£5966 per car) on Q7 variants and 8% (£4489 per car) when buying RX versions.

BMW is the only manufacturer to supplement the dealer’s margin discount with an additional direct customer saving on X5 variants, but it is also one of only six car makers not to offer a deposit contribution for consumers buying using a manufacturer’s PCP deal.

This is not unusual for luxury cars, because the manufacturers prefer to load the discount giveaway value away from the very visible cash discount and into the financing of the cars to avoid being seen to be distress selling their high-end models.

With finance deposit contributions of up to £5563 available across the segment, consumers can take advantage of an average £2901 per car additional savings when buying using a manufacturer’s PCP offer at a typical 4.2% APR.

Because dealers must contribute a portion of this finance-based saving from their own trading margin, the combined adjusted average cash and finance Target Price saving across luxury SUVs is £6378 per car.

Our industry sources claim that the ongoing desirability of luxury SUVs, combined with stock shortages and production delays due to global semiconductor supply issues will keep the Target Price savings stable for the next quarter’s trading.