Customers could save up to 25% when buying a new carBy Matt Maynard - Thu 11th Jun 2020
With car showrooms getting back into business as the coronavirus lockdown eases, new car prices are expected to be slashed by up to 25%.
In an attempt to lure people back to buying cars, some have seen almost a quarter of their worth knocked off the starting price.
Some noticeable price cuts on the market are cars such as the Mercedes E-Class estate, which has had £16,500 knocked off the list price, while the new Volksvagen Golf SV has had its price tag reduced by as much as £6,752.
Car dealers are aware that some were able to save money during the lockdown, and as people come out of lockdown with their hard-saved cash, they'll be looking to spend. Car registrations fell greatly during April and May amidst lockdown, and dealerships will be looking to shift old stock, while capitalising on this increased demand.
The lockdown hit the industry the hardest in May, with registrations dropping by a massive 89%.
The Society of Motor Manufacturers and Traders' (SMMT) Mike Hawes 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."
“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.”
A new scrappage scheme that could potentially be in the works could also help the industry get back to its feet. SMMT believes an icreased subsidy of £2,500 when customers trade in their old car to buy a new one, could see 600,000 new cars get on the road.