The Cost of Selling Cars

The latest TNS Promocar study shows that European car manufacturers spent 1,100 Euros on sales promotion for each vehicle sold last year - a 10% rise since 2003. TNS says it is now 'practically unheard of' for a car to be sold without some sort of incentive or discount.

The Promocar study, which analyses promotional campaigns in the automotive sector through simulations of regular purchases, was carried out in Germany, Italy, Spain, France, the United Kingdom and Portugal. The total investment in sales promotion in these countries rose to more than 12 billion Euros in 2004. Promotional techniques vary between markets, with discounting the most common method in Spain, while UK manufacturers tend to offer attractive financing packages.

The study says that sales promotions are now used across the board, even at the top end of the market. Marc Bouvier, Director of Promocar studies for TNS, says 'these practices have become so deeply ingrained that it is now unlikely for a buyer to sign an order form without trying to obtain some kind of discount, free gift or bonus'.

TNS is online at www.tns-global.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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