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Oaf prices slashed by 20%
Page 17
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• by Peter Lawton New Daf trucks will cost up to £16,630 less than previous models in a bid to reflect "real-world" prices, according to the company's marketing director.
Tony Pain says Oaf has ended up with some of the highest list prices in the industry thanks to rolling cuts by other manufacturers as they introduced new models. He predicts that this imbalance will be redressed by cuts across the range of 15-22%.
"The list prices had become so meaningless," says Pain, who points out that everyone except the press takes more notice of transaction prices and used vehicle guides like CAP's Red Book.
"Everyone now has a true negotiating point to start from," he adds.
Examples of the new prices include £24,300 for a new 45LE, down £6,140 from its predecessor's list price of £30,440. A typical new 85CE, at £49,800, will cost £16,630 less than its FT85 predecessor.
Pain expects used prices to be safeguarded by slightly higher residuals on new models and guaranteed buy-back values in leasing arrangements. But he warns that direct comparisons can prove misleading because of different specifications on new models. For example, many trucks are now fitted with features such as anti-lock brakes and cruise control as standard.
No reaction is expected from other manufacturers because they have already dropped their prices: Pain denies that the move is prompted by falling UK sales compared with the Continent.
Exchange rate fluctuations aside, Pain says the adjustments in pricing have brought the UK closer to the prices listed on the Continent, in a small move towards panEuropean pricing.
Ian Norwell of Mercedes-Benz says the company hasn't taken advantage of the launch of new trucks to adjust its prices but it cut them about three years ago, as did Volvo. Even so, new models launched by Mercedes since then have been slightly cheaper than outgoing ranges, including the new Sprinter; Norwell suggests that this has become the market's expectation.
Volkswagen has out the price of an entry level Transporter (the 68hp BOO Special) by 17% to £9,995. All other models in the Transporter range are being offered with finance deals of 5.9% and 7.8% over 24 and 36 months with a 40% deposit.