Target Price this month – Estate cars
This month’s Analysis of new car incentives
• The average cash Target Price discount has fallen by almost 10% in relative terms over the Covid 19 lockdown period and is currently 10.4% or £3807 per car in the estate car market.
This represents a significant reversal of the pre-Corona Virus trend which saw the cash Target Price reach a 12-month high of 11.4%, or £4013 per car.
• To coincide with the re-opening of dealer showrooms, manufacturers have improved the amount of PCP finance-based support with a 12.5% increase in average finance deposit contributions to £2399 per car, but this does come at the cost of an increased PCP APR, up from 3.8% to 4% on average.
This means that consumers can take advantage of an average combined cash and PCP Target Price saving of £6206 per car, which represents a 16.8% reduction in the average estate car list price.
• For a vehicle segment that includes prestige and volume car manufactures, it is surprising to note that four of the top five Target Price cash discounts come from prestige car models, at an average 15.5% or £6015 per car.
• Volkswagen and Mercedes-Benz take the top three places with typically achievable showroom cash savings of 19% (£6385 per car) on Passat estate models, 18.7% (£8896 per car) on E-Class estate variants and 14.2% (£6093 per car) on C-Class estate versions.
• Ford and Toyota dealers are offering the best PCP finance APR, with interest-free offers on Mondeo and Corolla Touring Sports models, while Jaguar and Audi are offering the best average finance deposit contributions at £6411 on XF estate variants and £5306 on A6 Avant versions respectively.