Manufacturers’ finance offers remain fairly static at the start of Q3 as there are no big movements being made to help pick up the declining new car market.
Sean Kemple, Close Brothers Motor Finance’s director of sales, keeps track of offers as part of the company’s internal analysis and told AM he is not seeing any specific push across the market, other than from certain manufacturers such as volume leader Ford.
He said: “Ford’s £2,000 scrappage scheme and continued 0% APR across the majority of models is the boldest initiative to get sales moving up until September.
“Volkswagen also has some very competitive offers on their SUV range to move those models specifically and Audi has some strong deposit contributions, but other than that things are looking pretty standard.”
Looking at Ford and VW models side by side shows how much of a push models such as the T-Cross and T-Roc are getting – both are currently available for less than £200 a month. Both crossover models are priced at a lower monthly level than the representative examples of Ford’s smallest cars, such as the Ka or Fiesta (although the VWs do attract a higher deposit).
The Fiesta and Focus are the only two models in the line-up without 0% finance, but they still have a low APR offering at 1.2% and 2.9% respectively.
Deposit contributions knock thousands of pounds off most of Audi’s range, with even smaller models such as the A3 saloon and A3 Sportback getting £3,000 and £4,000 reductions respectively.
The A4 saloon and Avant both get a £3,500 reduction and the deposit contributions increase up the range with £5,000 off an A5 Coupé, £6,000 off an A6 avant and £7,400 off an A7 Sportback. The SUVs have also been discounted for the next three months with £3,200 off a Q5 and £5,000 off a Q7.
The lack of push in other areas of the market doesn’t hint at a further downturn to come, according to the Finance and Leasing Association (FLA).
Geraldine Kilkelly, FLA head of research and chief economist, expects new car finance volumes to remain stable over 2019 as a whole: “New business volumes reached almost 1.1 million in the first five months of 2019 and are only 1% lower than in the same period in 2018.
“We continue to expect broadly stable new business volumes in 2019 as a whole.
“Consumer confidence about their own personal finances remains relatively strong, supported by a resilient labour market and low interest rate environment.”
Kemple said the other area currently seeing a lot of focus from manufacturers is alternatively fuelled vehicles (AFVs) and electric vehicles (EVs). While they are not yet at price parity with internal combustion engines, Kemple thinks finance has to play a key role in making these vehicles accessible with affordable monthly payments.
He said: “The attention AFVs and EVs attract in the media is not necessarily being reflected in the new car registration figures.
“We’re looking at how we can offer something that makes them more accessible for customers and I think the finance industry has to innovate here. That will play a key role in boosting sales, particularly in this interim period between now and 2025 when EVs are expected to be a similar price to internal combustion engines.”
The EV and AFV examples here show there is already support from manufacturers to support the new technology. VW is offering its e-Golf with 0% finance at £245 a month after an £8,213.70 deposit and Ford also has its Mondeo hybrid available at 0% and £269 a month after a £6,441 deposit. Audi’s e-tron 55 quattro is more of a niche premium product, so at £719 it’s not targeting a mainstream customer, but at 5.9% APR it’s at least in line with other models in the German brand’s line-up.
Top finance deals for retail buyers Q3 2019
|Model||Finance type||Deposit||Term||Monthly payment||Final payment||APR||Offer ends|
|KA+ Zetec 1.2 Ti-VCT 85PS||PCP||£427||24||£199||£6,147||0.00%||30/09/2019|
|Fiesta ST-Line 1.0 EcoBoost 100PS 3 door||PCP||£1,960||48||£199||£5,837||1.20%||30/09/2019|
|Tourneo Courier Zetec 1.0 EcoBoost 100PS||PCP||£928||36||£199||£6,728||0.00%||30/09/2019|
|C-Max Zetec 1.0 EcoBoost 125PS||PCP||£6,525||36||£239||£6,921||0.00%||30/09/2019|
|Grand Tourneo Connect Titanium 1.5 EcoBlue 120PS||PCP||£6,089.20||36||£259||£10,107||0.00%||30/09/2019|
|Kuga ST-Line Edition 1.5 EcoBoost 150PS FWD||PCP||£6,591||36||£295||£10,964||0.00%||30/09/2019|
|Mondeo Titanium Edition Hybrid Electric 2.0 TiVCT 187PS Auto||PCP||£6,441||36||£269||£11,505||0.00%||30/09/2019|
|S-MAX ST-Line 2.0 EcoBlue 190PS||PCP||£9,232||36||£289||£13,274||0.00%||30/09/2019|
|Galaxy Titanium 2.0 EcoBlue 150PS||PCP||£9,850||36||£289||£12,206||0.00%||30/09/2019|
|Ranger Wildtrak 3.2 TDCi 200PS Auto||PCP||£8,929.63||48||£299||£9,123||0.00%||30/09/2019|
|Up! beats 1.0 60ps S/S 3 door||PCP||£3,422.10||36||£109||£4,302.90||0.00%||30/09/2019|
|Polo SE 1.0 80PS manual||PCP||£3,90.07||48||£155||£5,937.30||4.80%||30/09/2019|
|e-Golf BEV 5 door||PCP||£8,213.70||48||£245||£9,861.30||0.00%||30/09/2019|
|Golf Match 1.0 TSI 115PS manual||PCP||£5,155.31||48||£209||£7,619.40||3.90%||30/09/2019|
|Golf R-Line 1.5 TSI 150PS manual 5 door||PCP||£6,504.90||48||£255||£9,297||3.90%||30/09/2019|
|T-Cross SE 1.0 TSI 95PS 5spd manual||PCP||£4,333.31||48||£165||£7,456.50||4.90%||30/09/2019|
|T-Roc S 1.0 TSI 115PS 6spd manual||PCP||£4,197.60||48||£175||£7,979.40||4.90%||30/09/2019|
|Tiguan Match 2.0 TDI 150PS 2WD 6spd manual||PCP||£6,409.76||48||£285||£11,181.60||4.90%||30/09/2019|
|Touareg SEL 3.0 TDI 231 PS 4MOTION 8spd DSG||PCP||£7,270.20||48||£399||£20,611.80||0.00%||30/09/2019|
|Arteon Elegance 2.0 TDI 150PS SCR manual||PCP||£8,364.93||48||£295||£12,737.70||3.00%||30/09/2019|
|Golf SV S 1.0 TSI 115PS manual||PCP||£4,699.97||48||£239||£5,985||3%||30/09/2019|
|Touran SE 1.5 TSI 150PS manual||PCP||£6,785.01||48||£255||£9,242.10||3.00%||30/09/2019|
|A1 Sportback Sport 30 TFSI 116PS 6-speed||PCP||£3,372.59||48||£229||£9,386||6.60%||30/09/2019|
|A3 Sportback S line 30 TDI 116 PS 6-speed||PCP||£6,285.98||48||£249||£10,835.70||6.80%||30/09/2019|
|A3 Cabriolet S line 35 TFSI 150 PS S tronic||PCP||£8,278.60||48||£299||£12,834.50||6.70%||30/09/2019|
|A4 Black Edition 35 TFSI 150 PS S tronic||PCP||£7,906.25||48||£329||£12,903.85||4.90%||30/09/2019|
|A4 Avant Sport 35 TFSI 150 PS S tronic||PCP||£7,502.26||48||£339||£11,182.45||4.90%||30/09/2019|
|A5 Coupé S line 35 TFSI 150 PS S tronic||PCP||£5,973.46||48||£349||£13,685.70||4.90%||30/09/2019|
|A5 Sportback S line 35 TFSI 150 PS S tronic||PCP||£7,647.77||48||£359||£15,066.95||5.90%||30/09/2019|
|A6 Avant S line 40 TDI 204 PS S tronic||PCP||£7,095.83||48||£419||£17,271||4.90%||30/09/2019|
|A6 S line 40 TDI 204 PS S tronic||PCP||£6,579.56||48||£399||£16,391.30||4.90%||30/09/2019|
|A7 Sportback S line 40 TDI 204 PS S tronic||PCP||£7,386.40||48||£479||£19,907.25||4.90%||30/09/2019|
|A8 50 TDI quattro 286PS tiptronic||PCP||£10,958.65||48||£589||£21,558.35||0.00%||30/09/2019|
|Q2 Sport 30 TFSI 116 PS 6-speed||PCP||£4,036.62||48||£239||£10,882.25||6.50%||30/09/2019|
|Q3 S Line 35 TFSI 150 PS 6-speed manual||PCP||£5,276.36||48||£359||£14,427.65||7%||30/09/2019|
|Q5 S line 40 TDI quattro 190 PS S tronic||PCP||£7,830||48||£415||£19,868.30||6.70%||30/09/2019|
|TTS Roadster TFSI Quattro 306 PS S tronic||PCP||£9,493.30||48||£439||£20,253.05||6.80%||30/09/2019|
|e-tron 55 quattro 408 PS||PCP||£9,130.72||48||£719||£36,991.10||5.90%||30/09/2019|