New car discounts static
Despite a struggling new car market, dealer discounts have remained static over the last three months (March to May), according to a What Car? Target Price report.
UK car sales figures have fallen by 6.8% in 2018, with 1,079,049 sold so far but average cash discounts across the industry have remained flat at 8.3% – equal to £2,581.
Curated by mystery shoppers, Target Price ensures a fair price for consumers but avoids the ‘race to the bottom’ for retailers. The data is central to What Car?’s New Car Buying tool which is helping connect up to 100,000 would-be buyers with the right car at the right price from trusted dealers nationwide.
The analysis of 7,500 different models on sale in the UK since the arrival of the 18-registration plate has revealed dealers have not been tempted to cut prices to attract buyers.
The What Car? Target Price was lower than the manufacturer on-the-road list price on all but 218 cars, but consumers were unable to get improved deals in May compared with March despite market pressures.
The report revealed Seat and DS dealers were offering the best savings in May. The French premium brand averaged a discount of 13.06% with Seat at 12.98%.
In fact, of the 15 companies offering above average discounts, nine had a market share of less than four per cent, showing the calculated push to convince buyers to switch brands.