Independent
UK importers countered franchised dealer discounts in June with one of the biggest
rounds of price cuts ever recorded, according to new car transaction price analyst,
CarPriceCheck.
The aggressive strategy came despite a fall in the value of the pound during
the month, which usually causes prices to rise.
Go deeper with GlobalData
However, price rises at UK dealerships outweighed improvements in available
discounts for the first time in four months. Franchised dealers delivered an
average fall of 2.59 percent for 389 models during June, but the month also
recorded a 2 percent average rise for a further 516 derivatives.
Importers delivered some of the widest-ranging price cuts monitored since August
2000, with many of the leading suppliers increasing discounts by an average
of 2.6 percent on upwards of 80 percent of their entire stock.
“Only time will tell whether June was an anomaly or motivated by a reduction
in vehicle availability caused by the pending manufacturer holiday breaks,”
said CarPriceCheck CEO Steve Evans
“However, [independent] importers certainly moved heaven and earth to
try and reassert their position in the market at a time when there are signs
that some [official] UK suppliers are beginning to relax their own aggressive
discounting as private buyers start to return to the showrooms.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataRenault and Peugeot dominated the price movements during June with nearly a
third of all recorded changes across all channels.
In a perfect demonstration of how changeable new car prices are between the
main channels to market, one internet retailer (Tins) delivered average savings
of 3.2 percent on 100 Renaults, while JamJar slashed an average 11 percent off
its discounts on 31 models from the French carmaker. On average, Renault UK
forecourt prices fell 0.75 percent.
Peugeot continues to be one of the most volatile manufacturers in the UK new
car price landscape. Across all channels, discounts actually plummeted by 2.4
percent in all. However, on closer inspection the downward trend was actually
driven by UK suppliers (dealer and internet) who accounted for an average fall
in discounts of 4.28 percent.
Conversely importers improved their discounts on a range of Peugeot models
by 2.2 percent.
While May saw official UK Mercedes-Benz dealers fight back against internet
and importer prices, June recorded a fall in discounts for 93 models –
some 32 per cent of the available range.
As UK dealers were forced to offer marginally increased prices, importers began
to reduce prices by 1.35 to 1.66 percent on average – a complete reversal
of the 1.51 percent average increase in price registered during May.
“There are certainly some great deals available from all the channels,
but there are some clear differences between them,” Evans said.
“In general, importer prices are the most changeable, one month up the
next down. UK dealers are gradually pushing prices down – albeit in fits
and starts – but the Internet retailers are playing a wholly different ball
game.
“One month, they will be trying to capture ‘Mr & Mrs Aspirational’
with aggressive pricing on Audis, the next they will be selling to the Renault
family man.
“In other words, there will be a good deal to suit every car buyer but
he or she will have to shop around that little bit harder, and more importantly,
that little bit longer to find it.”
|
To view related research reports, please follow the links The |
