Quarter off car prices now showrooms are out of coronavirus quarantine

Following the opening of car dealerships in England last Monday – and with Northern Ireland and Scotland and Wales set to follow suit – consumer champion What Car? has revealed the biggest savings available to new car buyers.

Some of Britain’s most popular cars can now be had with savings of almost 25 per cent off their list price as dealers desperately move to recoup the financial pounding taken after 10 weeks in coronavirus lockdown.

The biggest financial saving of the 12 mega deals car buyers can strike is a massive £16,500 off the price of a new Mercedes-Benz E-Class estate.

Quarter off car prices: In the first week of showrooms reopening, buyers can strike huge deals on new models, including £16,500 off the price of a Mercedes E-Class estate

And it’s not just the flash Mercedes that’s subject to incredible discounts. 

The Volkswagen Golf SV is currently available with a 24.2 per cent saving from dealers, while the VW Passat and Seat Leon can be had with 22.4 per cent and 22.2 per cent offers.

That’s according to mystery shopping and market data collated by What Car?.

The automotive title analyses discounts available in the market and sets a Target Price for every car in the UK, giving consumers a fair Target Price to pay for it without the hassle of haggling, as well as guaranteeing it for anyone buying through its website.

The latest data shows that some manufacturers have responded to the lockdown – during which new car registrations fell 97 per cent in April and 89 per cent in May – by increasing discounts in order to stimulate interest from buyers.

Largest discounts by percentage of car’s What Car? Target Price 

1. Volkswagen Golf SV

Save up to 24.2%/£6752

2. Mercedes E-Class Estate

Save up to 24.2%/£16,544

3. Fiat Tipo

Save up to 23.7%/£3800

4. BMW 4 Series Convertible

Save up to 23.0%/£12,474

5. Volkswagen Passat saloon

Save up to 22.4%/£7094

6. Seat Leon

Save up to 22.2%/£6515

7. Mercedes C-Class saloon

Save up to 22.0%/£8736

8. Citroen Grand C4 Spacetourer

Save up to 21.6%/£8821

9. Vauxhall Grandland X

Save up to 19.7%/£9177

10. Volkswagen Touran

Save up to 19.2%/£6538

11. BMW 8 Series Gran Coupe

Save up to 18.4%/£15,950

12. Volkswagen Arteon

Save up to 18.4%/£7123

Source: What Car? 

*Savings correct at time of writing but subject to change according to latest mystery shopper information and dealer offers. Some dealers may offer even higher discounts than Target Price. 

The VW Golf SUV is a compact MPV aimed at growing families. You can save up to 24% on a new one

The VW Golf SUV is a compact MPV aimed at growing families. You can save up to 24% on a new one

Fiat's Tipo is a medium-size family car - similar to the Ford Focus. It's not proving that popular in the UK, but a big discount of 24% could temp buyers

Fiat’s Tipo is a medium-size family car – similar to the Ford Focus. It’s not proving that popular in the UK, but a big discount of 24% could temp buyers

BMW revealed a new 4 Series Coupe this week, meaning a new convertible is due very soon too. The current generation drop-top is subject to big discounts right now

BMW revealed a new 4 Series Coupe this week, meaning a new convertible is due very soon too. The current generation drop-top is subject to big discounts right now

The list of the biggest percentage savings includes a raft of popular models, including the Vauxhall Grandland X and Volkswagen Touran. 

Jim Holder, What Car?’s editorial director, said: ‘Now that dealerships are opening again, manufacturers and retailers are moving fast to capitalise on pent-up demand. 

‘For some, that means increasing discounts in order to move stock, and some of the discounts available right now are staggering, both as a percentage of the cost of the car and in terms of actual pounds and pence.’

However, buyers are being warned that it is unclear how long this period of discounting will last, as supply of new models could be impacted by reduced output from car manufacturers.

The VW Passat is a hugely accomplished family saloon. Buyers can save 22% on them right now

The VW Passat is a hugely accomplished family saloon. Buyers can save 22% on them right now

There's a new Leon out, based mechanically on the latest eighth-generation VW Golf. The Seat hatchback is popular in the UK, making this deal something of a bargain

There’s a new Leon out, based mechanically on the latest eighth-generation VW Golf. The Seat hatchback is popular in the UK, making this deal something of a bargain

While most vehicle plants are now open across Europe, production is not at maximum capacity due to the social distancing measures they’ve had to put in place, which has ultimately slowed the pace at which they can build new cars.

This has already been seen to have taken a toll on some premium brands, with both Bentley and Aston Martin announcing UK job cuts this week, with some 1,500 staff being let go following the crisis. 

You can get up to 22% off the price of a new Mercedes-Benz C-Class saloon from showrooms right now

You can get up to 22% off the price of a new Mercedes-Benz C-Class saloon from showrooms right now

Want an enormous family car? They don't get much bigger than the Citroen Grand C4 Spacetourer. And you can save up to 21.6% - or £8,821 - on some models

Want an enormous family car? They don’t get much bigger than the Citroen Grand C4 Spacetourer. And you can save up to 21.6% – or £8,821 – on some models

Holder says the reduced production levels has muddied the waters in regards to how long dealers can cut the price of their stock, in fear that they won’t be able to replenish showrooms with new cars following the initial pent-up demand caused by more than two months of drastically lower vehicle sales. 

‘What’s less clear is how long this period of discounting will last,’ he explained to This is Money. 

‘With manufacturing facilities either running again at reduced pace or still shut in many instances, there is an expectation that demand could outstrip supply, even in the event of a heavy recession. 

‘If that becomes the case then the market will start to focus on profitability over volume again, and discounts could tighten up.’ 

Vauxhall's Grandland X is an SUV that comes with a hefty discount from dealers right now

Vauxhall’s Grandland X is an SUV that comes with a hefty discount from dealers right now

The VW Touran is a popular taxi, thanks to its reliability, classy interior and plenty of space. They make an ideal family car for bigger families, and with discounts could be attractive

The VW Touran is a popular taxi, thanks to its reliability, classy interior and plenty of space. They make an ideal family car for bigger families, and with discounts could be attractive 

What could help dealers is the arrival of a Government-backed scrappage scheme, like the one introduced in 2009 to help the motor industry recover from the financial crisis a decade ago.

The Society of Motor Manufacturers and Traders – in recently leaked letters to Chancellor Rishi Sunak – has been outlining the estimated impact of such a scheme in 2020, with the trade body calling for the government to ‘double down on efforts to reboot the economy’. 

Mike Hawes, the chief executive at the SMMT said: ‘It has been a black week for UK Automotive with devastating job cuts across retail and manufacturing coming hard on the heels of earlier losses. 

‘Whilst the industry is fundamentally strong and agile, it is not invincible. 

‘Global industries are challenged and we need to ensure the UK has in place a comprehensive strategy to support the sector and the highly skilled workforce on whom it depends. 

Fancy something more performance-orientated than practical? The BMW 8 Series Gran  Coupe has around 18% off the retail price, which translates to up to £16,000

Fancy something more performance-orientated than practical? The BMW 8 Series Gran  Coupe has around 18% off the retail price, which translates to up to £16,000

The VW Arteon is a stylish saloon with savings of up to 18.4% being offered by Volkswagen dealers now they've reopened following weeks in lockdown due to coronavirus

The VW Arteon is a stylish saloon with savings of up to 18.4% being offered by Volkswagen dealers now they’ve reopened following weeks in lockdown due to coronavirus

‘As the sector strives to weather the worst storm in a generation, measures to drive cash flow, stimulate demand and, above all, maintain our competitiveness are essential. 

‘Governments must double down on efforts to reboot economies, protect jobs and, internationally, work urgently to secure ambitious free trade agreements which avoid tariffs that add onerous cost and stifle global growth.’

In Germany, where new car registrations were down 50 per cent in May despite showrooms being open to the public during the month, new incentives have been put in place as part of a €130billion stimulus package following the pandemic.

This includes reducing the price of a new affordable electric car by €9,000 with a combined government and industry incentive as the nation pushes drivers towards zero-emission models.

It means the cheapest new VW ID.3 electric hatchback – with the incentive – will, in theory, cost less than an entry-level petrol Golf hatchback.  

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