Don’t count on a new vehicle discount

Would you pay complete price tag for a new auto?

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

But the days of big discount could be numbered as dealers slash the savings on offer you to customers. The average discount at the end of February was 9.4%, compared with 10.3% just 6 months ago, according to figures from What Car?’s Target Price tag team.

The discounts can make a large difference to cash-strapped buyers.

Take the new Ford Concentrate. The recommended price tag is £13,995 for a basic model. If the dealer gives a discount of 8.3%, you could spend £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 largest discounts if you are buying an executive, luxury or open-prime automobile. In truth, the savings obtainable on the leading-end cars have really gone up month on month by .7%.

It’s motorists who prefer (or who are restricted to) little cars who are not so fortunate. The discounts have dropped from 79% to 7.6% on compact models. But purchasers 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 most significant discounter, it’s the Swedish auto manufacturer Volvo, providing an typical of 14.7% off its models.

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

With discounts in decline, it is even far more crucial to shop about – including between marques – in search of the largest savings.

But why are savings shrinking?

Driving demand

It’s all down to provide and demand. Properly, primarily demand.

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The credit crunch put the dampeners on demand for new cars. A lot of men and women could hardly afford to spend their gas bill, never thoughts splash out on a new set of wheels.

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

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

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

Difficult occasions

Jim Holder, editor of What Auto?, says: “We have always encouraged purchasers to haggle to get a good deal, but buyers should be aware that it’s going to become much harder to come away with a substantial discount in the coming months.

“There are nonetheless some sectors, such as executive and luxury automobiles, where a very good deal can be negotiated, but the signs from some of the most common segments of the market show that companies are starting to stand firmer on their prices.”

Don’t count on a new vehicle discount