Target Price Market Report – November 2021

‘The chaos caused by the lack of semiconductor chip availability continues to disrupt new car supply.’

The average cash Target Price discount is maintaining a downward trend as the chaos caused by the lack of semiconductor chip availability continues to disrupt new car supply.

And with consumer demand for new cars remaining high, it is no surprise to see dealers taking maximum advantage of these rarely seen market conditions within the motor trade, and significantly boosting their profits.

Consumers can currently expect to haggle an average 5.6% or £2322 per car cash Target Price discount when buying a new car, and this is down by more than 11.5% (in relative terms) just over the previous quarter.

The adjusted average cash Target Price discount, after allowing for dealer contributions to manufacturer’s finance offers, is £1902 per car. Consumers buying using a PCP deal, at an average 4.6% APR, can then claim a typical £1328 per car finance deposit contribution, which results in a combined (cash and finance) Target Price saving of £3230 per car.

The percentage of total Target Price discount attributed to finance does vary considerably between vehicle segments with executive cars (51.6%), small cars (48.5%) and large SUVs (46.5%) occupying the top three positions.

Just 6.3% of cars in our Target Price inventory are currently available with an interest-free PCP deal, with Ford, MG and Toyota leading the way.

As the balance of negotiating power has shifted significantly towards dealers, it is vital that consumers check the latest Target Price data prior to contacting a dealer and be prepared to haggle for at least the Target Price discount.

Jeep dealers are currently the most generous when offering an average cash Target Price discount across a model range at 13.1%, followed by Suzuki at 12.8% and Renault at 11.6%.

Volkswagen is the most improved car maker, in terms of raising the typically achievable cash Target Price discount, with a 0.6% increase across the range, up from 8.1% to 8.7%.