Businesses, individuals: the big gap in new car prices

Vehicle sales to companies “save the auto market”. It is indeed an excellent deal for the manufacturers, because “the average transaction price is 30-35,000 euros per car in France“, explains Franck Fontanesi, director of the economy and statistics of the Fiev, the Federation of automotive suppliers. That’s a lot and it corresponds to the price level of a Peugeot 3008 gasoline or diesel SUV, for example.

It is almost 10,000 euros more than the “average selling price of the tricolor market at 22,000 euros”. Among private customers, we are more around 17-18,000 euros for a new car, the price of a basic Renault Clio or a moderately equipped Dacia Jogger! A considerable difference which makes the French car market diverge considerably depending on whether you pay for your car or… not. The gap is even more obvious in reality. Because individuals buy a lot of used vehicles (6 million transactions last year, 3.6 times more than for the new market)! Not the companies.

Business sales hold up better

Sales to company fleets represent a third of new car registrations in France. They are also doing better, since registrations fell, over the first five months, by 14% (to 175,900 units), while the total market fell by 17%! The company vehicles are an element of remuneration of the collaborators, who choose inside a list of some models. “These are well-equipped cars, with paid maintenance and a fuel card. The employee only pays a small rent corresponding to a fixed personal use”, specifies one at Peugeot. Since the vehicle does not cost him much, the beneficiary logically goes upmarket.

Admittedly, vehicle allocation policies are different in different companies. “Building-public works companies or large retailers are more sparing in the equipment they offer to their beneficiaries. But pharmaceutical laboratories are much more generous”, underlines the lion brand. It is also the company vehicles which “carry the new vehicle equipment which increases the costs”, indicates Franck Fontanesi.

The Dacia Sandero, queen of retail sales

Peugeot triumphs in the French fleet segment with 25% market share, ahead of Renault (16.7%), Citroën (10.8%), Volkswagen (5.3%), BMW (5.2%). For sales to individuals, complete reversal of positions! Renault’s low-cost Romanian subsidiary, Dacia, is logically the queen. Its small entry-level Sandero (from 10,790 euros) is downright the best-selling car in Europe to individuals alone. A constant since 2017. In France, the Sandero has been the leader since 2015, ahead of the Renault Clio, Peugeot 208. And the success is undeniable! The Sandero was also the Renault group’s world sales champion in 2021, all models combined.