As the number of new car sales continues to decline following uncertainty in the wake of the Brexit vote, manufacturers are doing more than ever to tempt customers into their showrooms.
As we approach September, traditionally a hot month for new car purchases as buyers flock for the latest registration plate, research by Motoring Research has discovered a number of outstanding deals on new cars.
Highlights include huge deposit contributions on new cars – with up to £4000 towards mainstream models such as the Ford Focus and Volkswagen Passat, and much bigger discounts on premium vehicles. The brand new Mercedes-Benz S-Class, for example, is available with a £12,327.50 dealer contribution towards an S350d AMG Line or AMG Line L.
Jeep is offering £2,000 off its Renegade, Cherokee and Grand Cherokee models if you take a test drive before the end of September. That’s on top of other offers, such as the £9,500 deposit contribution towards a Grand Cherokee SRT. That means you can enjoy a £11,500 saving, leaving a £5,274 deposit to stump up. All that’s left is £819 to stump up every month for three years plus, of course, the fuel costs for that 6.4-litre Hemi V8.
What are deposit contributions?
With around 80 percent of new cars sold on finance, manufacturers are focusing their efforts in making PCP deals more tempting. When you’re considering a PCP, a dealer will outline a number of costs involved in the plan. These will include the deposit (how much you have to put down to secure the car), the monthly repayment (how much you pay every month) and the optional final payment (how much you’ll need to pay if you want to keep the car once the payment plan is up).
As well as all these, it’s increasingly common to see a ‘dealer deposit contribution’ or ‘manufacturer deposit contribution’. This is money put forward by the dealer or manufacturer to lower your deposit and/or monthly repayment. Essentially, it’s a discount if you buy on finance.
They’re more common on more expensive cars (obviously, there’s bigger margins), and particularly on older or slow-selling models. Do look at the overall cost, however – if the PCP deal is at a high interest rate, you might end up paying more than the deposit contribution in interest.
As well as simply slashing money off, manufacturers are offering other incentives to encourage people to buy new. Kia’s offering a year’s free insurance on its Picanto and Rio models, as well as offering a free upgrade from the saloon to the estate with the Optima. Seat is also offering free insurance on its new Ibiza, while Skoda’s offering free roadside assistance.
As concern grows around polluting diesel cars, BMW and Mercedes-Benz are both running scrappage-style deals for old diesels, while Vauxhall is offering £2,000 for any old banger.
Ssangyong, meanwhile, is inviting customers to choose their own offer – with options including a free upgrade on the Tivoli (choose a model and add an automatic gearbox or 4×4 running gear, or move on up to the roomier XLV model, for free). There’s £1,000 available as a deposit contribution on some models, too, while Ssangyong’s five-year warranty and 48-hour test drive programme will also tempt buyers.
If you care for little more than cheap PCP deals, Suzuki is offering its Celerio from just £85 a month, while the new Swift is available with 0 percent interest finance and zero deposit. Dacia’s offering its Sandero for just £89 a month following a very reasonable £1,485 deposit. With Dacia, you get a five-year warranty, too.