Car manufacturers have adjusted their retail offer strategies to kickstart the year with a 4.4% drop in the average monthly prices of PCP deals, to £311.40, according to AM’s latest quarterly data.
The increased affordability across manufacturers’ model ranges is in contrast to the 5.5% quarterly rise seen in Q4 2018.
AM’s analysis of 259 representative examples from manufacturer’s websites display a theme of increased affordability to target customers until the end of March.
More than half of all the offers collated by AM for Q1 (55.6%) are priced below that average £311.40 price point, demonstrating a push to make models across ranges more affordable in a quarter that will be critical for dealers’ bottom lines in 2019.
Average deposit levels also followed suit to become more affordable this quarter, dropping by 10% on average, from £5,845.50 to £5,250.92.
While not exactly affordable, the average balloon payment also fell in Q1 from £12,142, to £11,621. Manufacturer finance houses also reduced their margins in Q1 to 3.78% APR after an average of 4.35% APR in Q4 2018.
AM’s data tracked 63 0% offers in Q1, a big increase quarter-on-quarter, up from 41 in Q4 2018.
Dacia and Suzuki once again dominate the affordability rankings by lowest monthly payment, with the Sandero Access SCe 75 priced from just £79 a month. Dacia has four models in the top 10 most affordable list, although the brand is continuing with its strategy of a high APR at 6.9%, almost double the Q1 average, to offset the low deposits.
The best 0% offers with the lowest monthly payments are more of an eclectic mix of makes and models, with Ford, Toyota, Seat, Citroën, Fiat and Jeep all present in the top 10.
There are models such as the Ford Ka Zetec city car for £99 a month, a Fiat 500L MPV for £155 a month, Ford Tourneo Courier MPV for £159 and Jeep Renegade SUV for £169.
The Suzuki Swift is also worth mentioning due to an offer of no deposit and monthly payments of £179.54.
According to the Society of Motor Manufacturers and Traders’ (SMMT) end-of-year data for 2018, the UK’s new car diesel market declined 29.6% in 2018. While growth in petrol (8.7%) and alternative fuel vehicles (up 20.9%) replaced some of the loss, it has not been enough to offset the full shortfall.
The SMMT said many diesel owners are still adopting a ‘wait and see’ approach, keeping hold of their older, more polluting vehicles for longer.
Retailers have been armed in Q1 with some powerful AFV deals, with every vehicle in the top 10 most affordable offering monthly payments below the quarterly average of £311.40.
The Toyota Yaris Hybrid is the most affordable on the market right now at £189 a month over a 42-month 0% offer. The Renault Zoe is the most affordable pure electric on the market at £199 over three years at 4.9%.
Toyota makes up half of the most affordable AFV models in Q1, with premium offshoot Lexus also making it into the list with its CT200h.
| Model | Finance type | Deposit | Term | Monthly payment | Final payment | APR | Offer ends |
|---|---|---|---|---|---|---|---|
| Top 10 models by lowest monthly payments | |||||||
| Dacia Sandero Access Sce 75 | PCP | £1,161.00 | 49 | £79.00 | £2,974.00 | 6.9% | 01/04/2019 |
| Ford Ka+ Zetec 1.2 Ti-VCT 85PS | PCP | £3,322.00 | 24 | £99.00 | £6,147.00 | 0% | 31/03/2019 |
| Dacia Sandero Stepway Essential TCe 90 | PCP | £2,286.00 | 49 | £109.00 | £3,781.00 | 7% | 01/04/2019 |
| Dacia Duster Access SCe 115 4×2 | PCP | £1,446.00 | 49 | £109.00 | £5,213.00 | 6.9% | 01/04/2019 |
| Dacia Logan MCV Access SCe 75 | PCP | £1,414.00 | 49 | £109.00 | £2,957.00 | 6.9% | 01/04/2019 |
| Suzuki Ignis Dualjet SZ3 | PCP | £1,912.11 | 48 | £109.00 | £5,263.00 | 6.9% | 31/03/2019 |
| Mitsubishi Eclipse Cross 2 Petrol Manual 2WD | PCP | £6,516.00 | 36 | £119.40 | £10,554.00 | 6% | 27/03/2019 |
| Toyota Aygo x-trend 1.0 VVT-i Manual | PCP | £2,901.00 | 42 | £129.00 | £4,770.00 | 0% | 31/03/2019 |
| Citroen C1 VTi 72 manual 5dr Flair | PCP | £2,429.00 | 48 | £129.00 | £3,868.00 | 0% | 31/03/2019 |
| Suzuki Celerio SZ3 Dualjet 5dr | PCP | £2,083.21 | 48 | £139.00 | £3,383.00 | 6.9% | 31/03/2019 |
| Top 10 0% offers at lowest monthly payment | |||||||
| Ford KA+ Zetec 1.2 Ti-VCT 85PS | PCP | £3,322.00 | 24 | £99.00 | £6,147.00 | 0% | 31/03/2019 |
| Toyota Aygo x-trend 1.0 VVT-i Manual | PCP | £2,901.00 | 42 | £129.00 | £4,770.00 | 0% | 31/03/2019 |
| Citroen C1 VTi 72 manual 5dr Flair | PCP | £2,429.00 | 48 | £129.00 | £3,868.00 | 0% | 31/03/2019 |
| Seat Design Mii 1.0 12V 60PS | PCP | £1,269.00 | 48 | £149.00 | £3,128.00 | 0% | 01/04/2019 |
| Seat Ibiza FR 1.0 TSI 115PS | PCP | £1,999.00 | 48 | £149.00 | £6,813.00 | 0% | 01/04/2019 |
| Citroen C3 PureTech 68 manual Feel | PCP | £2,754.00 | 48 | £149.00 | £4,703.00 | 0% | 31/03/2019 |
| Fiat Panda Waze 1.2 70PS | PCP | £1,835.00 | 36 | £155.00 | £4,350.00 | 0% | 31/03/2019 |
| Fiat 500L S-Design 1.4 95PS S-Design | PCP | £3,629.00 | 36 | £155.00 | £7,542.00 | 0% | 31/03/2019 |
| Ford Tourneo Courier Zetec 1.0 EcoBoost 100PS | PCP | £2,963.00 | 36 | £159.00 | £6,728.00 | 0% | 31/03/2019 |
| Jeep Renegade Sport 1.0 GSE T3 120PS Manual | PCP | £5,897.00 | 36 | £169.00 | £6,719.00 | 0% | 31/03/2019 |
| Top 10 EV or hybrid models by lowest monthly payment | |||||||
| Toyota Yaris Icon Tech Hybrid Petrol 1.5 VVT-i Auto | PCP | £3,896.00 | 42 | £189.00 | £7,110.00 | 0% | 31/03/2019 |
| Renault Zoe Dynamique Nav R110 | PCP | £4,499.00 | 36 | £199.00 | £4,850.00 | 5% | 01/04/2019 |
| Toyota Corolla Hybrid Design 1.8 CVT | PCP | £4,964.00 | 42 | £229.00 | £9,967.50 | 0% | 31/03/2019 |
| Toyota C-HR Design 5dr Coupe FWD Hybrid 1.8 VVT-i Auto | PCP | £6,546.00 | 24 | £249.00 | £15,187.50 | 0% | 31/03/2019 |
| Lexus CT 200h with Sport Pack | PCP | £5,715.00 | 42 | £259.00 | £10,080.00 | 4% | 31/03/2019 |
| Ford Mondeo Titanium Edition HYBRID Electric 2.0 TiVCT 187PS Auto | PCP | £6,934.00 | 36 | £269.00 | £10,522.00 | 0% | 31/03/2019 |
| Toyota RAV4 Hybrid Design 2.5 FWD Automatic | PCP | £7,588.00 | 24 | £279.00 | £17,730.00 | 0% | 31/03/2019 |
| Mitsubishi Outlander PHEV Juro Petrol Hybrid Auto 4WD | PCP | £12,202.00 | 36 | £287.92 | £14,980.00 | 5.9% | 27/03/2019 |
| Toyota Prius Business Edition Plus 5 door 1.8 VVT-i Auto | PCP | £5,664.00 | 42 | £299.00 | £12,802.50 | 4.9% | 31/03/2019 |
| Kia Niro Self Charging Hybrid 2 1.6 GDi 1.56kwh lithium-ion 139bhp 6-speed auto DCT | PCP | £2,249.00 | 36 | £308.93 | £10,797.00 | 5.9% | 31/03/2019 |
| Top 10 models by lowest deposit | |||||||
| Suzuki Swift 1.0 Boosterjet SZ-T | PCP | £0.00 | 48 | £179.54 | £5,381.00 | 0% | 31/03/2019 |
| Fiat 500 Pop 1.2 E6d | PCP | £0.00 | 36 | £199.00 | £4,846.00 | 0% | 31/03/2019 |
| Fiat 500 Collezione 1.2 70PS E6D | PCP | £0.00 | 36 | £239.00 | £5,656.00 | 0% | 31/03/2019 |
| Renault Clio Play TCe 75 | PCP | £169.00 | 48 | £169.00 | £5,511.00 | 0% | 01/04/2019 |
| Smart Fortwo Coupe Passion 72 PS (52 kW), manual, optional metallic body panels | PCP | £169.00 | 48 | £169.00 | £3,560.00 | 2% | 31/03/2019 |
| Smart Forfour Passion 72 PS (52 kW), manual | PCP | £169.00 | 48 | £169.00 | £3,370.00 | 2% | 31/03/2019 |
| Smart Fortwo Cabrio Passion 72PS (52 kW), manual with optional metallic body panels | PCP | £195.00 | 48 | £195.00 | £4,860.00 | 2% | 31/03/2019 |
| Renault Captur Iconic TCe 90 | PCP | £239.00 | 48 | £239.00 | £6,522.00 | 5% | 01/04/2019 |
| Nissan Juke Bose Personal Edition 1.6 Manual | PCP | £261.18 | 48 | £261.18 | £6,542.20 | 0% | 31/03/2019 |
| Hyundai i10 S 1.0 67PS petrol manual | PCP | £900.00 | 24 | £197.77 | £3,803.75 | 6.4% | 31/03/2019 |