Carmakers in 'discount war': As manufacturers look to boost 2017 sales you could save up to 22% on the price of a new car
- The SMMT predicted a 5-6% decline in new car registrations in 2017
- This is on the back of Brexit, the weaker pound and changes to VED
- Manufacturers have reacted by offering chunky discounts on their cars - including models that have only just been released
- For example, you can save almost £4,400 on a new £19,700 Vauxhall Mokka X
Manufacturers are falling over themselves to offer good deals on new cars right now, according to industry players.
Vehicle sales site BuyaCar.co.uk says you can save almost £4,400 on the price of a just-released, brand-new £19,700 model at the moment.
A fear of stalling sales and a first decline in new vehicle registrations for six years has resulted in motor brands engaging in what is being dubbed a 'discount war', with dealers willing to slash thousands of pounds off prices.
'Discount war': Carmakers are offering 'unprecedented' discounts on new vehicles in an attempt to stave off a 6% decline in car registrations predicted for 2017. This includes savings on just-released cars, like the Vauxhall Mokka X pictured, which went on sale in October
In January, the Society of Motor Manufacturers and Traders - the UK's automotive representative - said the record 2.6 million new cars sold in 2016 would not be repeated this year due to Brexit, the weaker pound and changes to the VED system that will make car tax more expensive for many drivers.
SMMT chief executive Mike Hawes said in January: '2017 may well be more challenging as sterling depreciation raises the price of imported goods.
'Looking longer term, the strength of this market will rest on our ability to maintain our current trading relations and, in particular, avoid tariff barriers which could add significantly to the cost of a new car.'
According to BuyaCar.co.uk, Hawes' words have dealerships rattled, and now they're looking at new tactics to move as many motors from their showrooms and forecourts in an attempt to head off a first annual reduction in new car registrations since 2011.
One of these strategies is offering 'unprecedented discounts', even on cars that have only just arrived in the UK.
The car buying website said the Vauxhall Mokka X 1.6i Active only emerged in British showrooms five months ago but you can already secure a 22 per cent discount directly from a franchised Vauxhall dealership.
And it's not just affordable cars that are being dragged into the discount war, with premium brand ranges including Audi, Mercedes, Jaguar, Volvo and Lexus getting involved, trimming more than 15 per cent off the price of some new models.
Even premium car brands are embroiled in the 'discount war', with Mercedes offering 17% off the price of a new E-Class - the equivalent of £7,247
There are very Alfa Romeo Giulias on the road in the UK yet, but still you can order one today and get 11% trimmed off the price
'Car manufacturers are geared up for a battle over customers and that's why we've been finding discounts on a scale that we haven't seen before,' Austin Collins, managing director of BuyaCar.co.uk, said.
'You're often hard-pushed to get even a few hundred pounds off the very latest models on the market, but we're offering some brand new Mercedes - built precisely to the buyer's specification - for £7,000 off the list price.'
The popular Mercedes E200d estate only went on sale in December, but an AMG Line Premium version is listed on BuyaCar.co.uk for £35,063 – a 17 per cent saving that totals £7,247.
Model | On sale date | BuyaCar price | List price | Saving (£) | Saving (%) |
---|---|---|---|---|---|
Vauxhall Mokka X 1.6i Active | Oct-16 | £15,314* | £19,700 | £4,386 | 22% |
Peugeot 3008 1.2 PureTech GT Line | Dec-16 | £20,404 | £25,495 | £5,091 | 20% |
Nissan Micra 0.9 IG-T N-Connecta | Dec-16 | £12,761 | £15,995 | £3,234 | 20% |
Mercedes E200d AMG Line Premium | Dec-16 | £35,063* | £42,310 | £7,247 | 17% |
Renault Megane Sport Tourer | Dec-16 | £16,556 | £20,050 | £3,494 | 17% |
Audi A5 Sportback 2.0 TDI SE | Oct-16 | £27,674* | £33,050 | £5,376 | 16% |
Alfa Romeo Giulia 2.0 Auto | Oct-16 | £26,334* | £29,480 | £3,146 | 11% |
Citroen C3 1.2 PureTech 82 Flair | Jan-17 | £13,722 | £15,085 | £1,363 | 9% |
*Includes discounts only available when you take out finance Source: BuyaCar.co.uk |
Audi's stylish new A5 Sportback also went on sale in December and the first customers are due to get their cars this month. Right now you can save £5,376 off the price of a diesel SE model when you take advantage of discounts and finance incentives, bringing the price down to £27,624.
Even the Alfa Romeo Giulia, a car that's barely turned a wheel on UK tarmac yet, is available with nine per cent knocked off the recommended retail price.
'Our dealer partners all over Britain are offering their best-ever discounts in an effort to boost sales. We're expecting these savings to be available throughout February and into March, but it's not currently clear how long this will continue,' Collins added.
'A lot will depend on how well the manufacturers feel they are heading off the predicted reduction in new car sales.'
The brand new Nissan Micra only went on sale in December - today you can secure a 20% discount on one
Last month the SMMT predicted that sales would fall by five to six per cent in 2017, partly as a result of the weak pound.
But manufacturers only expect the decline to take effect after April when car tax changes will add £400 to the cost of taxing a typical car over three years.
The rules only affect vehicles registered from April 1, so buyers are rushing to buy new cars by the end of March, when they will also be fitted with the new 17-reg number plate.
But Collins said anyone that's looking to beat the VED deadline has probably missed the boat by now, though a healthy discount could ease the blow of increasing vehicle tax costs.
'By now it is probably too late to order a new car in time to beat the April car tax changes.
'So this is good news for buyers because being able to save an unforeseen £5,000 on a brand new car will make an extra £400 in tax a lot less painful.'
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