Average discounts negotiated by consumers are smaller now than they were 12 months ago, research by car buyer’s guide What Car? has found.
Average discounts fell from 10.14% in May 2014 to 8.9% in the same month this year, which resulted in an average price increase of £204 across all models.
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Despite fewer discounts, markdowns exceeding 20% were still being negotiated on some models. The largest negotiated reductions were on estate, executive and luxury models; which attracted average discounts of 10.5%, 11.14% and 12.67% respectively.
What Car? suggested that there was strong evidence that heavy discounting would continue to subside, especially if car sales remain buoyant.
The latest SMMT figures have illustrated the strong performance of new car sales. In April new car sales registrations hit a ten year high, while in May there was an increase of 2.4% year-on-year.
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.
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By GlobalData"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."
