Longer term means cheaper deals

  07 January 2013

It’s at this time of the month that I take a look at the latest new car finance offers included in the Deals section that Auto Retail Bulletin publishes at the start of every month.

And with a new year has come a new trend. While there are still plenty of low and even 0% offers available, what’s emerged this month are some longer-term deals.

So, who’s doing these deals? It’s those brands that are more about price than prestige. You can get a Vauxhall Zafira for £169 a month, a Ssangyong Korando for £239 a month or even a Dacia Sandero for a remarkable £69 a month.

We’re talking about four and five-year deals here which, at first glance, seems like a very long time to run a car before you trade-in. However, in reality this shows two things.

First, that the longer-term financial outlook is looking more stable, with interest rates unlikely to change much in the medium term.

Second, as many customer-savvy auto retail groups have demonstrated in the past, that a longer term finance deal is one way of delivering an affordable new or used car.

And once buyers are signed-up to this it’s possible to approach them before the end of term with a fresh offer – say at the three-year point – to switch up.
Remember, it’s easier to sell to an existing customer than it is to a new one.

Tristan Young

Start your free 14 day trial

Get free access to our Bulletin, Agenda & Profit for 14 days.

After 14 days we will auto bill your credit or debit card unless the order is cancelled.

As an auto retail executive you need insightful and unique industry intelligence to boost your business potential. Here’s a taste of what Auto Retail Network has to offer:

  • Get informed and boost your business potential
  • More than 1,200 fellow executives have joined us
    since launch
  • Independent, carefully crafted, unique content relevant to you and your business
  • Develop a greater awareness of market trends and opportunities
  • Access to a wide range of materials whenever, wherever and however you want it
  • Significant discounts on ARN events, reports and
    other publications