Do not count on a new car discount

Would you spend full cost for a new auto?

Most purchasers are prepared to haggle to get a very good deal in the auto showroom – and for years motorists have enjoyed generous discounts of up to 20% or a lot more.

But the days of large discount could be numbered as dealers slash the savings on provide to consumers. The typical discount at the end of February was 9.4%, compared with 8.3% just 6 months ago, according to figures from What Vehicle?’s Target Price team.

The discounts can make a huge distinction to money-strapped customers.

Take the new Ford Concentrate. The advisable price tag tag is £13,995 for a simple model. If the dealer offers a discount of 10.3%, you could pay £12,554. But if the discount is only 9.4%, the automobile will cost £12,680, or £126 much more.

Size matters

You can secure the greatest discounts if you are getting an executive, luxury or open-prime car. In truth, the savings accessible on the prime-finish automobiles have truly gone up month on month by .7%.

It’s motorists who favor (or who are restricted to) little automobiles who are not so fortunate. The discounts have dropped from 8.9% to 7.6% on compact models. But buyers of chunky SUVs are similarly squeezed, with savings slumping from 7.9% to 7.1%.

Viva Volvo

If you want to know the UK’s largest discounter, it’s the Swedish car manufacturer Volvo, supplying an typical of 14.7% off its models.

Renault is also generous, with typical discounts of 13.6%. So as well is BMW, with an average saving of 13.2%.

With discounts in decline, it is even much more critical to shop around – including amongst marques – in search of the most significant savings.

But why are savings shrinking?

Driving demand

It’s all down to supply and demand. Properly, mainly demand.

[embedded content material]

The credit crunch put the dampeners on demand for new vehicles. A lot of people could hardly afford to spend their gas bill, by no means thoughts splash out on a new set of wheels.

But consumer self-assurance is steadily growing, supported by a stronger economy and healthier employment figures.

Today’s a lot more confident consumer has fuelled a surge in demand for new automobiles, culminating in new car sales hitting a 10-year higher of more than 2.5 million in 2014.

Of course, if we are keen to buy automobiles, dealers don’t require to lure us into the showroom. Hence the disappearing discounts, particularly for well-liked cars.

Hard instances

Jim Holder, editor of What Automobile?, says: “We have constantly encouraged purchasers to haggle to get a great deal, but buyers need to be aware that it is going to turn out to be considerably tougher to come away with a substantial discount in the coming months.

“There are nevertheless some sectors, such as executive and luxury vehicles, where a good deal can be negotiated, but the signs from some of the most popular segments of the market place show that makers are starting to stand firmer on their prices.”

Do not count on a new car discount