A study by the Spanish Division of the market research company TNS shows that the average discounts applied to new cars on the Spanish car market last year were 2,775 Euros, a discount that includes the government aid package offered by the program “2000E” .
According to TNS officials, Spain is the European country where the most aggressive price cut campaigns were conducted in 2010. On the second place in this top is Italy, with an average discount of 2,118 Euros, and France is on third place with 1,860 Euros. TNS study shows that the average reductions in Germany were 1,691 Euros and in the United Kingdom only 1,520 Euros.
Another conclusion is that the report from TNS shows that Spanish dealers have relied in particular on promoting direct discounts, a situation similar to other European countries. However, in Spain, no less than 84% of total new car sales were made with this discount in place.
Meanwhile, in Germany, discounts were offered indirectly by reductions in lease acquisition, extended warranties, insurance or prepaid service packs for free. This is, in fact, the European markets tend to move from direct price cuts to indirect reductions in order to prevent the devaluation of the brands.
Regarding the brands sold in the Spanish with the biggest discounts, TNS points out to Chrysler, with an average discount of 5,045 Euros, Honda, with 4,068 Euros and Saab, with 4,057 Euros. At the same time, the lowest average reductions were made to Mini (637 Euros), Suzuki (1,308 Euros) and Volvo (1,348 Euros).