Car dealers predict 'unbelievable' bargains in 2026
Industry bosses expect unprecedented discounts on new cars this year as manufacturers face increased EV sales targets and growing competition. Electric vehicles likely to see the biggest price cuts.
Car buyers could be in for "unbelievable" deals throughout 2026 as manufacturers face intense pressure to meet stricter electric vehicle targets while battling a cost of living crisis, according to Autocar.
Robert Forrester, CEO of major dealer group Vertu Motors, predicts the offers will be so generous they'll prove "even uneconomic for dealers and OEMs". Evidence is already emerging, with discounts of nearly 30% spotted on top-end Jeep Avenger Electric models and almost £9,000 slashed from Honda e:Ny1 prices.
The main driver behind these predicted bargains is the Zero Emission Vehicle (ZEV) mandate, which jumps from 28% to 33% this year. This means manufacturers must ensure a third of their sales are electric vehicles or face hefty fines. However, with EV penetration in retail channels sitting at just 14%, while over 80% of customers still want petrol or hybrid cars, manufacturers are expected to heavily discount electric models to meet targets.
Growing competition adds pressure
The pressure isn't just regulatory. Tony Whitehorn, a former Hyundai UK boss turned industry consultant, notes the dramatic market expansion: "In 2020 there were 46 brands and today there are 72. By the end of 2026, there are likely to be around 80." Most new entrants are expected to be Asian brands following the success of BYD, Jaecoo and Omoda.
However, Philip Nothard from Cox Automotive International warns that excessive discounting could backfire. Chinese brands and others may instead focus on adding more features and value rather than simply cutting prices, as steep discounts fuel depreciation and undermine finance agreement calculations.
The increased competition is already reshaping the dealer landscape. Ford has nearly halved its UK dealer network to around 200, while other franchises are consolidating or sharing showrooms. Nothard predicts fewer but larger dealers will remain, potentially benefiting consumers through increased buying power and better deals.
