Top 20 most-read new car reviews on whatcar.com – November 2020
In the six-months period leading to the Covid-19 lockdown, dealers were in trouble. Despite recognising that average profitability was dangerously low, and falling, Target Price discounts kept rising to try to boost flagging demand and meet ever increasing manufacturer sales targets.
Fast forward to now, and an unintended consequence of Covid-19 is an unprecedented opportunity for dealers to sell fewer cars and make more profit.
Manufacturer sales targets have been reduced or temporarily suspended, the supply of new cars (and viable used car alternatives) is restricted, consumer demand is strong and anyone visiting a dealer showroom for a test drive must make an appointment, which tends to mean they are serious about buying.
This is increasingly giving salespeople the confidence to better defend their trading margins and become even more adept at focusing consumers’ discount expectations lower, and on to what offers are coming direct from the manufacturer, as opposed to their own profit margin.
Eleven of our fourteen Target Price vehicle segments have reported relative terms reductions of up to 12.4% in the average cash Target Price saving. Only family cars, small and luxury SUVs have bucked this trend with no month-to-month change.
This means that consumers can currently expect to haggle a typical 7.9% or £3038 saving when buying a new car. This figure is boosted to £4586 per car when you add in the average finance Target Price saving that comes linked to manufacturer-backed PCP deals.
Mitsubishi dealers are currently the most generous when offering an average cash Target Price discount across a model range at 13.9%, followed by Nissan and Seat at 13.6% and 12.2% respectively.
Mini 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 2.1% to 13.9%.
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