‘Entry’ list price saving important for nearly half of new car buyers as average discounts slow at the end of the year, What Car? shows

With nearly half (44.5%) of all new car buyers now looking to secure an ‘entry’ price online before walking into a showroom headline discounts on the list price continue to be an essential part of the buying process, says Rachael Prasher, managing director of What Car?.

The comments come after the latest Target Price report from What Car? found that average discounts on a new car eased during the last quarter of 2018 from £2590 to £2369 - a fall of £221 and 8.51% since September. Mercedes-Benz topped the dealer discounts with £3908 average discount across its model range – more than £1000 on average than its traditional German executive brand rivals with Audi offering £2980 and BMW £2693 between September to November.

The fall in discounts can be partly explained by the new European-wide WLTP type approval test that has caused some manufacturers to reduce model availability across countries. UK dealers were also known to cut back on discounts to boost their profitability in 2018.

Rachel Prasher says: “Although the consumer leaves the showroom with a PCP or PCH, they still compare deals based on discounts not monthly payments earlier in the sales cycle online as that’s easier for them to comprehend. And with the average buyer comparing more than one model at that stage, it’s not a big leap to see the influence of headline discounts in swaying a decision even before they’ve engaged a dealer.”

The small car sector saw the smallest discounts according to What Car?. At the end of November, the average discount on a new small car stood at £946, a fall of nearly 20% since September.

Diesel and petrol cars saw their average discounts fall by 6.73% (from £2892) and 5.31% (from £2234), respectively, with the average diesel and petrol buyer now saving £2697 and £2104 on a new car.

Across the manufacturers, Mercedes-Benz was found to offer the highest discounts between September and November, with £3908 savings across the brand’s model range. At the other end of the scale, budget brand Dacia was found to offer the lowest discounts in the same period, with buyers receiving £112 off a new model.

Top 10 Target Price discounts from manufacturers

Bottom 10 Target Price discounts from manufacturers