New Car Discounts Dry Up As Sales Boom Continues Says What Car?

• Amount drivers pay for new cars has increased by 1.3%
• Small-car sector offers smallest discounts
• What Car? predictsfurther rises as strong sales continue

Discounts on new cars are shrinking as Britain's car sales boom rumbles on, according to What Car?research.

Average discounts negotiated by consumers are smaller now than they were 12 months ago; down from a typical markdown of 10.14 to 8.9%.

In cash terms, that's a price increase of £204 across all models.

The analysis by Britain's biggest car buyer's guide represents the strongest evidence yet that heavy discounting will continue to subside, especially if new car sales remain buoyant.

The analysis was carried out by What Car?'s Target Price team, which provides buyers with anticipated discounts available across hundreds of new models up to the end of May 2015.

Instead of holding all the aces, consumers could soon be at the mercy of dealers keen to retain satisfactory margins while demand is strong.

What Car? editor Jim Holder said: "Dealers need to turn a profit and, while demand remains high due to strong consumer confidence, they feel able to stand firm.

"A reduction in average discounts from £2564 to £2360 might not sound a lot, but it's been a steady trend for a number of months now and consumers will have to get used to it.

"Our advice, as always, is to shop around and negotiate the best discount possible, not only in cash but in terms of options, too."

The price rises have arrived even though UK inflation fell below zero last month.

Despite fewer discounts, markdowns topping 20% can be negotiated on some models. The largest reductions are negotiable on estate, executive and luxury models; attracting discounts of 10.5, 11.14, and 12.67% respectively.

Please visit www.whatcar.com for more information.

ENDS

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AboutWhat Car?

What Car?, the UK's biggest car-buying brand, has the main magazine, a market-leading website and several established brand extensions. The flagship magazine has helped Britain's car buyers make purchasing decisions for more than 40 years and its tests are widely regarded as the most trusted source of new car advice.

Whatcar.com is the UK's leading car-buying website, offering trusted reviews and data on every new car. A winner of numerous awards and accolades, whatcar.com is recognised as one of the UK's leading consumer websites for car purchases, and attracts 2.1 million unique visits every month, plus a further 600,000 unique visits on Whatcar.com mobile. The website also offers advice on car leasing, new car deals and used cars for sale.

Meanwhile, 57,581 people subscribe to What Car? magazine every month (ABC to December 2014) and its social media channels have more than 81,000 subscribers, likes and followers.