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New car prices increasing at around £200 every three months - report

Author: Nick Phillips - www.newcarpromotions.co.uk

New car recommended retail prices continue to remain stable with a circa £200 increase each quarter for the past 18 months.  New car prices have increased just 3% on average since late 2011. 

Of course there are fluctuations within these average figures with some brands significantly increasing prices whilst other reduce them. 

Vehicle types and model mixes also play a part in this for example if the trend in the market is towards introducing smaller, more affordable vehicles, this will have the effect of bringing average prices down.

Recent trends include:
- 15 manufacturers increasing prices over the past 12 months whilst eight have reduced prices
- The most aggressive brand in cutting prices is Seat with their July 2013 range costing 12% less than the same period last year (before discounts / incentives)
- Seat’s sister brand Skoda has seen the largest increase in pricing with 13% over the same period.  Some of this can be explained by the introduction of new vehicles into the larger segments such as Rapid, Octavia, Superb and Superb Estate. 

The top five biggest increases are:
1. Skoda +13%
2. Mazda  +11%
3. Mercedes-Benz +10%
4. Mini +9%
5. Land Rover +9%

The five biggest reductions include:
1. Seat -12%
2. BMW -7%
3. Jaguar -6%
4. Vauxhall -4%
5. Volkswagen -4%

In terms of vehicle segments, mainstream / volume manufacturers have remained most stable with their pricing whilst premium brands have increased their pricing by a minimum of 6% (except for BMW who reduced theirs). 

The traditional budget brands of Kia, Hyundai and Chevrolet have seen price increases of between 3% and 5% as they strive to improve their brand image and bring improved product to market.

Cash offers and customer savings

The past 12 months has seen vehicle manufacturers becoming increasingly focused on finance and ownership packages with less cash discounts offered. 

The average cash discount has reduced in the past year by 11% to £1,584 and significantly less than the £1,935 being offered just six months ago.

Less manufacturers are now offering cash discounts than at any time in the past 18 months.

This is an excerpt from an analysis of new car price changes and the various finance offers.

It is available in a free report that offers insight into manufacturer and dealer performance in Q2 2013, major acquisitions, changes in franchised networks and consumer confidence and finance offers.

The report is called AMi Market Watch. It incorporates information from our data and insight platform AMi: www.am-online.com/ami.

AMi Market Watch Q2 2013 contents:

- H1 new car registration performance
- Sales per franchised outlet data and brand comparison for 2013 and historic
- Dealer group 2012 financial status report
- New car pricing and finance offer trends
- New car launch activity
- News summary - key events in the year-to-date

> Download Market Watch Q2 2013 report.
 

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