AM Online

Growth in zero per cent finance offers may have helped April rebound

April finance offers quote

While April’s 10.4% increase in new car registrations can be partly explained by comparing it with a bad month in 2017, it’s possible the strength of offers on the table in Q2 also played a part.

There has been a quarter-on-quarter increase in 0% finance offers, from 63 in Q1 up to 69 in Q2 across 15 different franchises. It will be interesting to see if this level of 0% support continues into the second half of the year as Q4 2017 showed a much lower level – 45 offers.

There are four cars with monthly payments below £100 in the most affordable category this quarter, including the expected value cars such as the Dacia Sandero and Suzuki Celerio. However volume players Ford are also in there, with the Ka+ Zetec.

Volkswagen, Citroën and Hyundai also make it into the most affordable category, making the price of entry into those brands very accessible.

The number of no-deposit deals has reduced in Q2, down to just four with Smart continuing its offer from Q1, but there are seven offers in total with a deposit below £500. Renault’s Clio Dynamique Nav 1.2 16V 75 for a £189 deposit and £189 a month is a simple and strong offer, as is the deal on the Captur Dynamique Nav TCe 90 for a £219 deposit and £219 a month.

When looking at overall affordability, more than  half (56.4%) the offers AM has recorded for Q2 are priced below the £300 per month price point (180 deals out of the 319 total).

At the other end of the affordability spectrum, there are some brands that stand out for having a much higher rate of finance than the rest. Citroën’s C4 and SpaceTourer are both available with an offer on 9.9% APR, a three percentage-point hike over the rest of the higher rate APRs, which are all 6.9%. It’s not a percentage rate that’s echoed throughout the rest of Citroën’s range, which has 0%, 2.9% and 4.9%  offers on important volume models such as the C1, C3 and C4 Cactus.

As always, the most expensive end of the table for monthly offers is a display of prestige supercars and SUVs, but scanning further down shows a Kia Optima PHEV at £474 a month, sitting between a BMW X3 M Sport and Mercedes-Benz GLC Coupe AMG Line. It’s a premium playing field Kia is getting more and more confident in, particularly with new products such as the Stinger and a high-specification Sorento.

Despite the strength of offers available in Q2, there were still five manufacturers that recorded registrations decreases of 10% or more in April, despite market conditions that should have aided increases due to such a poor month by comparison last year.

This includes Smart, SsangYong, Infiniti, BMW and Mercedes. Of that group, the German premium volume players have been hit the hardest, as Audi had a flat month too, so it will be interesting to see where all three end up by the end of June. Out of all three, BMW has the most offers at a lower rate of finance, so that may help the efforts of the dealer network over the next 30 days.

 

Top finance deals for retail buyers

Model Finance type Deposit Term Monthly payment Final payment APR Offer ends
Top 10 most affordable by monthly payment
Dacia Sandero Access SCe 76 PCP 1,367.00 36 89.00 2,781.00 4.90% 09/07/2018
Suzuki Celerio SZ2 5dr PCP 1,740.00 48 89.00 2,465.00 5.90% 30/06/2018
Ford Ka+ Zetec 1.2 VCT 85PS PCP 3,579.00 24 99.00 5,145.00 0.00% 30/06/2018
Dacia Logan MCV Access SCe 75 PCP 2,282.00 36 99.00 3,361.00 4.90% 09/07/2018
Citroën C1 VTi 68 manual 3dr Feel PCP 2,672.51 36 109.00 3,988.00 2.90% 30/06/2018
Dacia Sandero Stepway Ambiance TCe 90 PCP 2,521.00 36 109.00 3,680.00 4.90% 09/07/2018
Volkswagen Take up! 1.0 60PS 3dr PCP 2,794.10 48 109.00 2,593.80 6.60% 01/07/2018
Hyundai i10 Go! SE 1.0 PCP 2,129.00 36 122.79 4,527.00 4.90% 30/06/2018
Toyota Aygo x-press 5dr 1.0 VVT-i Manual PCP 2,204.00 42 129.00 4,567.50 0.00% 01/07/2018
Citroën C4 Cactus PureTech 110 S&S manual Feel PCP 5,586.00 36 132.62 6,444.00 4.90% 30/06/2018
Top 10 most affordable by 0% offer and lowest monthly payment
Ford Ka+ Zetec 1.2 VCT 85PS PCP 3,579.00 24 99.00 5,145.00 0.00% 30/06/2018
Toyota Aygo x-press 5dr 1.0 VVT-i Manual PCP 2,204.00 42 129.00 4,567.50 0.00% 01/07/2018
Nissan Micra Acenta IG-T 90 with optional metallic paint PCP 4,525.24 36 149.00 6,105.76 0.00% 01/07/2018
MG3 3Form Sport HP 1,755.00 60 149.00 N/A 0.00% 30/06/2018
Vauxhall Insignia Grand Sport Design 1.5 Turbo (165PS) PCP 5,894.00 24 157.21 9,978.00 0.00% 30/04/2018
Suzuki Swift 1.0 Boosterjet SZ-T PCP 1,245.00 48 159.00 4,622.00 0.00% 30/06/2018
Citroën C3 PureTech 82 manual Feel PCP 2,549.00 36 159.00 6,547.00 0.00% 30/06/2018
Ford Fiesta Zetec 1.0 Ecoboost 5dr PCP 5,631.00 24 160.00 7,469.00 0% 30/06/2018
Vauxhall Corsa 5dr Energy 1.4i (75PS) ecoTec (a/c) Lava Red PCP 4,800.00 24 161.38 5,167.00 0.00% 30/04/2018
Toyota Yaris Icon Tech 5dr 1.5 VVT-i Manual PCP 2,524.00 42 169.00 5,197.50 0.00% 01/07/2018
Top 10 highest APR rates
Citroën C4 PureTech 110 6-speed manual Platinum PCP 3,932.46 36 379.00 5,896.00 9.90% 30/06/2018
Citroën SpaceTourer Flair 2.0 BlueHDi XL 150hp S&S PCP 500.00 36 887.32 16,296.00 9.90% 30/06/2018
Subaru XV 1.6i SE Lineartronic CVT PCP 2,527.00 48 325.00 10,268.00 6.90% 30/06/2018
Subaru Impreza 1.6i SE Lineartronic CVT PCP 2,406.50 48 328.00 8,948.00 6.90% 30/06/2018
Subaru Levorg 1.6i GT Lineartronic CVT PCP 7,364.50 48 349.00 10,484.00 6.90% 30/06/2018
Subaru Forester 2.0i XE 6MT PCP 2,663.25 48 368.00 9,700.00 6.90% 30/06/2018
Subaru Impreza 2.5i WRX STI Type UK 6MT PCP 5,809.00 48 374.00 13,833.00 6.90% 30/06/2018
Subaru BRZ 2.0i SE Lux 6MT PCP 1,724.74 48 399.00 10,555.00 6.90% 30/06/2018
Subaru Outback 2.5i SE Premium Lineartronic CVT PCP 3,312.50 48 447.00 13,025.00 6.90% 30/06/2018
Range Rover Sport 3.0 SDV6 HSE Auto PCP 12,778.00 36 599.00 40,935.00 6.90% 30/06/2021


If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.