Why Flat Retail Prices Spell Opportunity

Written by Amy Roberts | Aug 15, 2025 11:17:20 AM

👉 Why this signals a shift away from discounting

👉 Three smart moves beyond cutting price

If you're watching the car retail market trends, something interesting is happening right now: retail prices have been stable for four months straight.

That's right, we're back to pre-pandemic normal steady prices, healthy demand, and quick sales. Instead of fuelling price wars, it's the perfect time for dealers and brokers to focus on real value gains, especially through finance-driven strategies.

What Autotrader Data Tells Us

According to the latest Autotrader data:

Average used car prices stood at £16,786 in July, flat against both the previous month and the same time last year—the fourth straight month of price stability.
Sales grew 3.3% year-on-year, and cars flew off the forecourt in just 29 days on average, even outperforming last year.
Consumer confidence is solid; about 44% of buyers feel much more confident they can afford their next car than they did last year, and 70% plan to buy within six months. This is steady, confident momentum, not a buyer’s market.

Why This Signals A Shift Away From Discounting

When retail pricing is flat and demand is strong:

Sellers don’t need to compete on price.
High turnover means there’s less pressure to slash margins.
Buyers are motivated, but they still look for perceived value, not just a cheaper sticker.

That’s where finance and ancillary products become your champions for profit growth.

Three Smart Moves Beyond Cutting Price

Strategy	What You Can Do	Benefit
1. Emphasise finance value (PCP/HP)	Present flexible payment plans clearly, e.g., “£X/month with a low deposit and X% APR”	Keep your headline price, reduce buyer hesitation, increase volume
2. Feature ancillary packages	Promote add-ons like servicing, gap insurance, and maintenance directly with the finance quote	Adds margin while enhancing trust and post-sale retention
3. Push tailored PCP bundles	Use PCP to enable contentment with full retail price, e.g.: “Affordable ownership from £X/month”	Preserves pricing; delivers flexibility and potential repeat customers

Each of these nudges creates value without shifting the headline price.

The Real Impact

PCP and flexible financing help you retain full pricing integrity while softening the perceived cost for buyers.
Ancillary add-ons deliver noticeable margin boosts, they’re value-rich and often under-promoted.
In a stable price environment, financing value becomes your differentiator.

Did You Know?

Marsh Finance is one of only two lenders in the UK offering non-prime PCP, giving dealerships and brokers a rare opportunity to open up flexible payment options to customers with less-than-perfect credit. This unique product lets you combine the appeal of lower monthly payments with a structured route to ownership or renewal, without shutting out a significant portion of the market that traditional prime-only PCP products can’t reach.

Final Thoughts

Stable prices aren't a lull, they’re an invitation. Don’t race to the bottom with discounts. Instead, elevate your value by spotlighting smart financing and meaningful add-ons. That’s how you win trust, preserve margins, and ride the wave of today’s confident market.

Partner with a Lender That Helps You Keep Your Prices, and Your Margins

At Marsh Finance, we help dealers and brokers make the most of a stable market. From flexible HP and PCP products to our exclusive non-prime PCP (one of only two in the UK), we give you the finance tools to close deals without cutting prices.

If you want a lender partner who can help you preserve pricing integrity, boost margins through finance value, and reach more customers, we’re ready to work with you.

👉 Partner with Marsh Finance today let’s turn stable prices into stronger profits.

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