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As the automotive market in the UK experiences a notable shift, new car buyers are finding themselves in a prime position to secure substantial savings. Recent data reveals that the average discount on new vehicles has soared to nearly £6,000, with manufacturers and dealers offering discounts surpassing 10% to entice consumers back into showrooms.
A Competitive Market
According to Insider Car Deals, the average price cut across all petrol, diesel, and electric models stands at an impressive 11.4%, translating to approximately £5,911 off the on-the-road price. This figure reflects the total cost of a vehicle, encompassing essential fees such as road tax, registration, number plates, delivery, and VAT.
When it comes to electric vehicles (EVs), the situation is even more advantageous for buyers. The average reduction reaches 12.9%, with discounts amounting to £7,091 largely due to slower production rates for affordable electric models compared to their petrol counterparts.
Manufacturer Concerns Amid Discounts
While these developments are undoubtedly beneficial for consumers, they have raised concerns among industry executives. Many argue that the government’s EV sales targets are overly ambitious, prompting manufacturers to resort to what they describe as “unsustainable” discounting practices to maintain competitiveness, especially with the influx of new Chinese brands in the market.
Interestingly, despite a marked emphasis on EVs, some petrol models are witnessing even larger discounts in relative terms. Take the widely popular Nissan Qashqai, for instance; reports indicate that this British-made vehicle can be acquired for £36,000, representing a remarkable 17.9% off its recommended retail price. Meanwhile, Nissan’s electric variant, the Ariya, is available at a modest discount of 13.1%, bringing its average price to £45,264, albeit with some versions qualifying for grants.
Similarly, the Kia Niro EV is currently offered at a 7.1% discount, reducing its price to £38,460, although it does not qualify for any grants. In contrast, the hybrid version of the Niro showcases a more compelling discount of 13.2%, priced at £33,225.
Timing is Everything
For potential buyers, timing is crucial. It’s advisable to engage in negotiations, particularly at the end of the month or quarter when dealers are keen to meet sales targets. Although the upfront costs of electric vehicles may still be higher in some cases, the overall cost of ownership could be more economical in the long run, especially for those with the capacity to charge at home.
Electric vehicles are generally more efficient, resulting in lower energy costs and reduced carbon emissions. Furthermore, maintenance expenses tend to be lower on average.
Colin Walker, the head of transport at the Energy & Climate Intelligence Unit (ECIU), underscores the financial benefits of transitioning to electric vehicles. He notes that many drivers could save an estimated £1,300 annually, based on fuel prices projected for 2025. With the majority of individuals able to take advantage of cheaper night-time charging tariffs, the financial incentives for opting for EVs become even more pronounced.
The Role of Government Incentives
The UK’s electric car grant, which provides up to £3,750, has been instrumental in bridging the price gap between electric and petrol vehicles. For instance, the Ford Puma, which topped sales charts in the UK in 2025, starts at £26,580, closely rivalled by the electric Puma Gen-E priced at £26,245 post-grant.
Walker notes a remarkable surge in EV sales throughout 2025, attributing this trend to an expanding array of models and decreasing prices as manufacturers strive to meet their sales goals.
The pandemic-induced shortages of new vehicles and the subsequent chip crisis had previously stifled the need for discounts, but as market dynamics shift once again—intensified by competition from emerging brands like BYD and SAIC’s MG—the return of discounts is palpable across dealerships.
Pat Hoy, founder of Insider Car Deals, observes that the current level of discounting mirrors the pre-pandemic market conditions, suggesting a return to a more traditional sales cycle where discounts fluctuate with market demands.
Why it Matters
The surge in discounts for new cars signifies a valuable opportunity for consumers, particularly as the automotive industry grapples with the dual challenge of meeting stringent emissions targets while remaining competitive amid a changing market landscape. As buyers increasingly seek value, the pressure on manufacturers to innovate and adapt will likely lead to a more vibrant and diverse automotive market, ultimately benefiting consumers in both the short and long term.
