New models will end big discounts from Volvo
What Car? Target Price data showed Volvo to be Britain's biggest new car discounter but their new products will end that trend, according to the manufacturer...
Volvo’s reputation as Britain’s biggest new car discounter will end as a consequence of its new product onslaught, according to the firm’s UK managing director Nick Connor.
According to What Car? Target Price data, Volvo is currently the easiest brand to negotiate a discount for, with discounts of more than £10,000 available on some old XC90 models. However, with demand for the all-new XC90 outstripping supply and the firm planning to renew its entire model line-up by 2020, Connor says that the need to discount will end.
"Our reputation as one of the UK’s largest discounters surprises me given what some of our opposition are offering, but it’s clear that our relatively old product line-up - including until recently a 13 year-old SUV, which had capitalised its development costs long ago - has led to some impressive savings," he said.
"Now, as new product arrives, we won’t have to offer those discounts. This business is built around the product, and when you have desirable product everything else follows. We are not hell-bent on volume, and we know we have a job to do to educate the residual value setters so they understand the days of discounts are over and that demand for our cars makes them more desirable than ever."
To date, more than 60% of sales of the new XC90 have been to customers new to the Volvo brand according to Connor, which is being interpreted as a sign that both new and existing customers are willing to pay full price for a Volvo if the product justifies the cost.