Discounts on new EVs rise 323%

The average discount on new electric vehicles has increased 323 per cent in the last year, in a desperate bid to stimulate sales by car manufacturers and their networks.

With demand for EVs waning in recent months, the average combined cash and finance discount on a new battery-powered car grew to GBP4,399 in the last 12 months, according to new market analysis.

By comparison, discounts on petrol and diesel models over the same period between November 2022 and October 2023 grew 122.7 per cent and 122.5 per cent respectively, says What Car?.

We reveal the EV models that car makers and their retailers are discounting by most in a bid to move them out of their showrooms.

Car dealers have increased discounts on new EVs by 323% on average in a desperate bid to boost sales amid waning consumer demand, says new research.

These are the 12 models that have had their prices slashed the most by retailers

While official figures show EV registrations growing year-on-year, the Society of Motor Manufacturers says that just one in four electric car sales are to private buyers[1].

Instead, demand is predominantly being driven by uptake from large fleets as a result of benefits including lower taxation and salary sacrifice schemes that make them far cheaper than a combustion car for businesses and employees to run.

As such, the UK’s automotive trade body has called for the introduction of fresh Government incentives to make EVs more affordable as part of growing efforts to boost consumer demand for battery-powered cars.

However, it now appears that manufacturers are taking things into their own hands by slashing prices themselves in a bid to encourage drivers through the door and back out with the keys to a new electric car.

That’s according to fresh analysis conducted by consumer motoring title, What Car?, which has been scouring EV prices across retailers in the last few weeks.

The biggest discounts the team of mystery shoppers found are offered by Vauxhall retailers on two if its electric models.

The biggest percentage discount of all can be found on Vauxhall’s Mokka-e 100kW GS Line 50kWh. Dealers are slashing the GBP38,985 RRP by 23.3% (GBP9,087) dropping the price to GBP29,898.

That discount amount is 386% higher than a year ago

Vauxhall retailers are also slashing the price of the Corsa-e 100kW GS 50kWh. It should cost GBP34,080, but an 18.5% (GBP6,305) saving means you can get one for just GBP27,775.

This discount is 264% higher than dealers were offering 12 months earlier

The Mokka-e is currently available with the largest percentage savings overall, with discounts worth 23.3 per cent of its list price.

This equates to a cash saving of GBP9,087 on a recommended retail price (RRP) of GBP38,985.

Historical data gathered using What Car?’s ‘Target Discount’ research shows the discount is 386 per cent higher than what was offered by Vauxhall dealers on this car last year.

And they are also offering sizeable savings on the Corsa-e, with retailers willing to part with them for GBP6,305 less than their GBP34,080 list price.

This is a discount of 18.5 per cent on the RRP and a 264 per cent increase in saving compared to what dealers were selling this EV for just 12 months earlier.

And it’s not just Vauxhall retailers slashes thousands of pounds off the price of their EV models.

THE 12 ELECTRIC VEHICLES BEING DISCOUNTED MOST IN THE UK TODAY MODELLIST PRICE (RRP)DISCOUNTED PRICE AVAILABLE TODAYSAVING ON RRP (GBP)SAVING ON RRP (%)DISCOUNT INCREASE YEAR-ON-YEARVauxhall Mokka-e 100kW GS Line 50kWhGBP38,985GBP29,898GBP9,08723.3%386%Vauxhall Corsa-e 100kW GS 50kWhGBP34,080GBP27,775GBP6,30518.5%264%Fiat 500 70kW Red 24kWhGBP28,195GBP24,169GBP4,02614.3%257%Honda E 113kW Advance 36kWhGBP37,395GBP32,117GBP5,27814.1%183%Volkswagen ID.3 150kW Pro 58kWhGBP37,255GBP32,618GBP4,63712.4%850%Nissan Leaf 110kW Acenta 39kWhGBP28,995GBP25,430GBP3,56512.3%124%Mercedes EQC 300kW AMG Line Premium 80kWhGBP78,975GBP69,375GBP9,60012.2%702%Audi Q4 e-tron 40 82kWh Sport GBP50,630GBP44,756GBP5,87411.6%1,177%BMW iX3 210kW M Sport 80kWhGBP64,165GBP56,844GBP7,32111.4%421%MG ZS 130kW SE EV 51kWhGBP30,495GBP27,017GBP3,47811.4%247%Renault Megane E-Tech EV60 Iconic 60kWh Optimum ChargeGBP41,995GBP37,889GBP4,1069.8%996%BMW i4 eDrive40 M Sport 83.9kWh [Pro Pack]GBP61,765GBP56,222GBP5,5439.0%455%Source: What Car? Target Price

The price of a new Fiat 500 Electric is discounted by dealers by just over GBP4,000, which is a 14.3 per cent off its RRP. This is a 257 per cent increase in discount compared to one year ago.

Also among the list of 12 heavily discounted EVs is the Honda e, Volkswagen ID.3, Nissan Leaf, BMW iX3 and i4, MG ZS and Renault Megane E-Tech.

The biggest increase in discount in percentage terms is offered by Audi dealers on the Q4 e-tron SUV.

What Car? says a retailer will now sell you one for GBP44,756 instead of the RRP of GBP50,630 – a saving of 11.6 per cent.

Fiat retailers are slashing the cost of a new 500 Electric 70kW Red 24kWh from GBP28,195 to just GBP24,169. That 14.3% (GBP4,026) discount is 257% higher than deals offered on the same car a year ago

Honda showrooms are willing to sell its ‘E’ supermini in 113kW Advance 36kWh spec for GBP5,278 less than its GBP37,395 RRP. The 14.1% discount is 183% higher than what was offered a year ago

Volkswagen retailers were not offering big discounts on the ID.3 a year ago, but they are now. For a 150kW Pro 58kWh, you can get one for GBP32,618 – that’s GBP4,637 (12.4%) less than the GBP37,255 RRP. The discount is 850% higher than it was back in Nov 2022, says What Car?

Customers can get their hands on a new Nissan Leaf 110kW Acenta 39kWh for GBP25,430. That’s a GBP3,565 (12.3%) saving on the GBP28,995 RRP. What Car? says the discount amount is 124% higher than it was when it checked market prices a year ago

Mercedes retailers are offering discounts on the EQC 300kW AMG Line Premium 80kWh of GBP9,600 (12.2%). This cuts the GBP78,975 RRP to GBP69,375. The discount amount in 702% up on a year ago

Find out what all 44 major car firms have said about their electrification plans, including when they intend to stop selling motors with petrol and diesel engines once and for all.

The discount available today is 1,177 per cent higher than what was offered on this car by Audi’s network 12 months earlier, What Car? says.

The discounting trend also extends to PCP finance deals, with monthly payments on EV models dropping by an average of 16 per cent over the same period.

In one instance, the monthly PCP payment on a Mercedes EQC dropped from GBP1,094 last November to GBP594 in October this year – a 46 per cent decrease – partly due to the attractive 0 per cent interest rate terms now available (down from 9.9 per cent last year).

What Car? editor Steve Huntingford said: ‘While EV sales have grown in 2023, this is down to favourable tax rules tempting company and fleet drivers.

‘However, the huge increase in discounts that we’ve seen over the last 12 months means they can actually make a lot of financial sense for retail customers, too.’

Why EV discounts could get BIGGER next year

Even greater EV discounts could be on the way in the coming months.

That’s because, as of next year, car manufacturers need to adhere to the Government’s new Zero Emission Vehicle (ZEV) mandate[3].

An Audi Q4 e-tron 40 82kWh Sport is now available for GBP44,756, which is GBP5,874 (11.6%) less than its GBP50,630 RRP. The discount amount is 1,177% up on a year ago, when retailers were barely knocking anything off the price of this luxury electric SUV

What Car? says you can get your hands on a BMW iX3 210kW M Sport 80kWh for GBP56,844 today, which is GBP7,321 (11.4%) less than the RRP of GBP64,165. The discount amount is 421% higher than it was when its mystery shoppers checked the market back in November 2022

Despite being one of the most affordable electric family cars, MG dealers are knocking almost GBP3,500 (11.4%) off the ZS 130kW SE EV 51kWh. Today, you can have one for GBP27,017 instead of the RRP of GBP30,495. This is a 247% year-on-year increase in discount, What Car? says

The Renault Megane E-Tech hasn’t been on sale for long in the UK but you can still saving a big chunk of money on a new one. A EV60 Iconic 60kWh Optimum Charge should cost GBP41,995 but is reduced to GBP37,889 – a saving of GBP4,106 (9.8%) and increase in discount of 996%

BMW dealers are letting go of the i4 eDrive40 M Sport 83.9kWh [Pro Pack] for GBP56,222, which is GBP5,543 (9.0%) less than the GBP61,765 RRP. This is a year-on-year discount increase of 455%

This sets out that mainstream brands must achieve a 22 per cent sales mix of EVs in 2024, else face heavy fines of GBP15,000 per car under that threshold.

Reaching a share of more than a fifth next year will require a big uplift in sales from the 15.6 per cent market share achieved so far in 2023[4].

As such, the need to sell increasing volumes of EVs could fuel even larger discounts on new electric models next year in order for manufacturers to meet the binding targets set out by ministers.

The Government’s new Zero Emission Vehicle mandate is being introduced next year.

In 2024, 22% of all brand sales must be electric cars, and the target for sales share of EVs will rise each year until 2035 – when new petrol and diesel models are banned

References

1. ^ one in four electric car sales are to private buyers (www.thisismoney.co.uk)
2. ^ When will all new cars in the UK be electric? (www.thisismoney.co.uk)
3. ^ Zero Emission Vehicle (ZEV) mandate (www.thisismoney.co.uk)
4. ^ 15.6 per cent market share achieved so far in 2023 (www.thisismoney.co.uk)