More than 85% of consumers expect up to £500 off the price of a car priced up to £5,000, according to a survey from Manheim-owned Motors.co.uk.
For cars costing between £5,000 and £10,000, 70% of consumers would expect more than £500 off the list price, and for cars priced over £15,000, more than half expect a minimum discount of £1,000.
More than 80% of consumers would also expect a 12-month warranty as standard, while three-quarters want at least 10 months’ MOT on the car and 12 months’ tax.
Phill Jones, commercial director of Motors.co.uk said: "The internet is a great source of empowerment for the consumer, providing them with information to better understand pricing, and also the confidence to know that they can save money by shopping around. Consequently, consumers are increasingly ‘backing themselves’ on the forecourt.
"This research creates an opportunity for dealers to present consumers with clear, compelling offers. Creating ‘wins’ for the consumer that are not too expensive can go lengths in helping the consumer feel that they have got a deal.
"The overriding emotion of car buyers is a nervousness that they are overpaying, but this can be easily placated by creating a deal. This doesn’t necessarily mean an impact on margins, as there are various tools at a dealer’s disposal. The warning is that consumers will compare offers against other dealers nationally, so any packages need to be compelling and backed by a high level of service."
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataJones’ sentiments echo those of Jamie Dixon of web management firm GForces, who told delegates at the Finance & Leasing Association used car seminar in the summer, they were now dealing with a customer base of well-informed, internet-researching ‘pro-sumers’.
A total of 669 people responded to the Motors.co.uk survey in August.