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Q2 new car finance ‘business as usual’ despite Brexit doubts

Dealers have pushed through the first quarter and despite the delay to Brexit and a broadly flat Q1 for private registrations (down 0.8%), UK customers are continuing to buy cars.

One dealer told AM that some customers brought their purchases forward to avoid potential 10% price increases in the event of ‘no deal’. This may account for why private registrations are not down as much as they could have been.

According to Mike Jones, ASE chairman, there have been no sweeping changes with incentives and PCP and PCH deals are what is keeping the market in relative health as it continues to get on with the job despite the lack of clarity on the future of the UK’s relationship with Europe.

Jones said: “We’ve only just closed Q1, but all signs point towards Q2 proceeding as normal.

“Incentive plans will continue to flex, but everything around that right now is business as usual. Despite the level of uncertainty politically, the market is actually performing well.

“For the vast majority of people in the UK, a car is a necessity and the continued success of PCP and PCH automatically bring people back to the market and they have to make a decision at the end of that contract. That is what is keeping the market going.”

While dealers are getting on with the job, they have to consider the potential for a no-deal Brexit and what this will do to new car prices and manufacturer’s incentive plan strategies this year.

Fraser Brown, managing director of MotorVise, said: “New car price increases in the event of a no-deal Brexit, with currency fluctuations and tariffs combined, could take you from £15,000 for a family car up to north of £20,000.

“In the event of a no-deal Brexit, incentive programmes are likely to soften and then you’ll see prices rise three or four times gradually over the next six months.”

Ford, the UK’s biggest volume player, is continuing with its broad support of 0% APR across the majority of its model range, an indication that the strategy on incentives for the biggest player in the UK remains largely unchanged.

Models such as the Ka and Fiesta are affordable at £99 or £178 a month in Q2. The sportier Fiesta ST-2 is the only model across Ford’s range of representative examples that has an APR above 0%.

Andy Barratt, Ford of Britain managing director, said: “New models like the Fiesta and Focus Active are gaining strong traction with our customers.

“Despite the economic uncertainty in large part caused by Brexit, we continue to expect a strong sales year for Ford in the UK.” 

Model Finance type Deposit Term Monthly payment Final payment APR Offer ends
Ford
Ka+ Zetec 1.2 Ti-VCT 85PS PCP £3,427 24 £99 £6,147 0.00% 30/06/2019
Fiesta Zetec 1.0 100PS 5dr PCP £4,713 36 £178 £6,349 0.00% 30/06/2019
Fiesta ST-2 1.5 200PS 3dr PCP £5,035 36 £225 £9,436 2.90% 30/06/2019
EcoSport Zetec 1.0 EcoBoost 100PS PCP £4,791 36 £185 £6,899 0.00% 30/06/2019
Focus Zetec 1.0 125PS PCP £5,378 36 £210 £7,917 0.00% 30/06/2019
C-Max Zetec 1.0 EcoBoost 125PS PCP £6,535 36 £239 £6.921 0.00% 30/06/2019
Grand C-Max Zetec 1.0 EcoBoost 125PS PCP £7,226 36 £259 £7,100 0.00% 30/06/2019
Kuga ST-Line Edition 1.5 EcoBoost 150PS FWD PCP £5,962 36 £295 £11,293 0.00% 30/06/2019
Mondeo ST-Line Edition 2.0 EcoBlue 150PS PCP £7,001 36 £269 £10,515 0.00% 30/06/2019
S-Max ST-Line 2.0 EcoBlue 190PS PCP £9,545 36 £289 £12,961 0.00% 30/06/2019
Galaxy Titanium 2.0 EcoBlue 150PS PCP £10,059 36 £289 £11,997 0.00% 30/06/2019
Edge ST-Line 2.0 EcoBlue 238PS AWD PCP £10,449 36 £425 £17,886 0.00% 30/06/2019
Tourneo Custom Titanium L1 H1 2.0 EcoBlue 130PS PCP £10,613 36 £279 £14,261 0% 30/06/2019
Ranger Wildtrak 3.2 TDCi 200PS PCP £12,172.63 36 £299 £12,468 0.00% 30/06/2019
Volkswagen
Up Beats 1.0 60PS S/S 3dr PCP £3,331.80 36 £115 £4,183 0.00% 30/06/2019
Golf Match 1.6 TDI 115PS manual PCP £4,553.73 47 £225 £7,184.70 2.50% 30/06/2019
Polo SE 1.0 80PS manual PCP £3,871.99 47 £155 £5,937.30 5.20% 30/06/2019
T-Cross SE 1.0 TSI 95PS 5spd manual PCP £4,637.23 47 £169 £7,456.50 5.60% 30/06/2019
T-Roc S 1.6 TDI 115PS 6spd manual PCP £4,295.17 47 £215 £8,770.50 5.90% 30/06/2019
Tiguan Match 2.0 TDI 150PS 2WD 6spd manual PCP £6,383.37 47 £265 £10,287.90 5.20% 30/06/2019
Tiguan Allspace Match 1.5 TSI 150PS 2WD manual PCP £6,651.99 47 £279 £12,140.10 5.20% 30/06/2019
Touareg 3.0 TDI SEL 231 PS 4MOTION 8spd DSG PCP £7,573.70 47 £405 £20,526.30 0.00% 30/06/2019
Golf SV S 1.6 TDI 115PS manual PCP £4,072.78 47 £259 £5,733.90 2.50% 30/06/2019
Golf Estate Match 1.6 TDI 115PS 6spd PCP £4,712.84 47 £235 £7,441.20 2.50% 30/06/2019
Arteon Elegance 2.0 TDI 150PS SCR DSG PCP £8,625.71 47 £315 £13,226.40 3.30% 30/06/2019
Passat Saloon SE Business 2.0 TDI 150PS manual PCP £6,182.61 47 £275 £8,582.40 3.30% 30/06/2019
Passat Estate SE Business 2.0 TDI 150PS manual PCP £5,227.71 47 £289 £9,085.50 3.30% 30/06/2019
Touran S 1.6 TDI 115PS 6spd manual PCP £6,317.76 47 £259 £8,190.90 3.30% 30/06/2019
Sharan S 1.4 TSI 150PS 6spd manual PCP £6,370.40 47 £309 £8,432.10 3% 30/06/2019
Mercedes-Benz
A 180d SE PCP £4,399 48 £269 £10,350 5.70% 30/06/2019
B 180 Sport PCP £4,479.83 48 £359 £10,100 6.34% 30/06/2019
C-Class Cabriolet 180 AMG Line PCP £6,677 48 £409 £15,700 5.70% 30/06/2019
C-Class Saloon 180 SE PCP £6,299 48 £319 £10,875 5.70% 30/06/2019
C-Class Estate C 180 SE PCP £6,399 48 £329 £11,300 5.70% 30/06/2019
C-Class Coupé 180 AMG Line PCP £6,078 48 £399 £13,500 5.70% 30/06/2019
CLA Coupé 180 AMG Line PCP £4,729 48 £279 £10,275 5.70% 30/06/2019
CLA Shooting Brake 180 AMG Line PCP £4,729 48 £289 £10,425 5.70% 30/06/2019
CLS 350 d 4MATIC AMG Line Coupé PCP £10,949 48 £589 £22,075 5.70% 30/06/2019
E-Class Cabriolet E 220 d AMG Line PCP £9,512.15 48 £519 £19,300 5.70% 30/06/2019
E-Class Coupé PCP £7,132.32 48 £499 £17,675 6.40% 30/06/2019
E-Class Saloon E 220 d SE PCP £6,571.93 48 £379 £14,150 5.70% 30/06/2019
E-Class Estate E 220 d SE Estate PCP £6,828.27 48 £349 £15,125 5.70% 30/06/2019
G-Class G 350 d PCP £14,999 48 £899 £49,500 6.40% 30/06/2019
GLA 180 Urban Edition Sport PCP £3,689 48 £249 £11,325 5.70% 30/06/2019
GLC 4MATIC URban Edition PCP £7,099 48 £349 £16,625 5.70% 30/06/2019
GLC Coupé GLC 250 4MATIC Urban Edition PCP £8,399 48 £409 £19,000 5.70% 30/06/2019
GLE Coupé GLE 350 d 4MATIC AMG Line Night Edition PCP £9,999 48 £659 £25,075 5.70% 30/06/2019
GLE 350 d 4MATIC AMG Line Night Edition PCP £9,703.67 48 £559 £22,100 5.60% 30/06/2019
GLS 350 d AMG Line PCP £9,999 48 £799 £28,650 5.70% 30/06/2019
S-Class Saloon S 350 d AMG Line PCP £12,499 48 £629 £22,475 0.00% 30/06/2019
S Class Coupé S 560 AMG Line Coupe PCP £15,052.01 48 £1,189 £33,050 6.40% 30/06/2019
SL 400 AMG Line PCP £10,952.22 48 £755 £23,525 6.40% 30/06/2019
SLC 180 AMG Line PCP £6,674.78 48 £379 £12,150 6.40% 30/06/2019


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