AM has teamed up with What Car? Connect, the data marketing and insight service, to produce a monthly look at used car sales and target price data.
Each month, we feature a Connect report on one sector of the market, prepared exclusively for AM.
And each month, What Car? produces what it calls its 'target price' analysis based on the deals it says buyers can make in the showroom.
The latest in our series of pieces on Target Price data in conjunction with What Car? Connect, the data marketing and insight tool, looks at the small SUV segment.
Small SUVs - lower discounts than average
Small SUVs are a healthily-growing segment, so it should be no surprise that discounts come at a lower rate than for the market as a whole. Specifically, averge Target Price discounts are running at 7.9% for small SUVs, or £1799 per car, which is 1.4% below the all-segment average of 9.3%, making this segment the fifth lowest.
Small SUV discounts have remained broadly stable over the last six months, peaking at 8.4% in September 2014.
While SUVs in general remain highly-aspirational among car buyers, the stable nature of Small SUV discounts can be attributed to the fact that there are number of persistently low discounts on certain models to counter the higher cuts on some others.
The demand and carefully controlled supply for the Audi Q3, Mercedes GLA and Range Rover Evoque means that salespeople can limit savings to less than 5%. But dealers can discount by more than 13.5% to close deals on the BMW X1, Peugeot 3008 and Renault Captur. The highest discount is the 17.5% (£3356) saving on Peugeot’s 3008 1.6 e-HDI 115 Access EGC.
Top five average Target Price discounts
Peugeot 3008: 17.5% / £3697
BMW X1: 13.0% / £3618
Jeep Compass: 11.0% / £2393
Renault Captur: 10.3% / £1633
Skoda Yeti: 9.5% / £1901
There’s very little manufacturer incentive activity within the Small SUV segment, only BMW providing cash with up to £2900 available on X1s. Finance incentives are not offered on the most sought-after models, but generous offers are available on some.
Skoda offers a 2.9% APR PCP deal on Yetis (excluding SE Business) Nissan offers a £1500 finance deposit and three years free servicing on Jukes bought with a three-year 6.9% APR Nissan PCP and Vauxhall offers five years interest-free hire-purchase deal on Mokkas.
Many small SUVs remain desirable, allowing manufacturers and dealers to limit discounts and finance incentives to keep orders flowing. But less sought-after models will inevitably come with higher savings and some generous finance-based offers.