Citroen ends cashback

Dec 21 2009 Maurice Glover

Citroen ends cashback

MORE THAN a decade of money-back offers will come to an end when Citroen puts its new C3 small car range in the showrooms next year.

Due to go on sale in January, the latest version of the popular supermini will be sold without the aid of cashback, the promotional tool that helped make the French brand more popular with British motorists in the 1990s.

Up to the end of September, a cashback offer of £1,945 cut the on-road price of the outgoing C3 entry-level VT model to £8,495 and a 'customer allowance' of £3,000 is currently available in a run-out promotion.

But incentives will be limited to a choice of finance packages and a £199 three-year servicing deal on the next-generation range, which costs from £10,790.

'We introduced cashback retailing at a time when there was a lack of clarity about the real price of cars and it was a success because it helped customers who didn't want to haggle," said marketing manager Cecile Tirard.

'Things are different now and buyers are more sophisticated. We have walked away from that kind of business - our strategy has changed because our sales are now based on the strength of the product and nothing else.'

Claimed to set a fresh benchmark in style, interior space and packaging, the new C3 costs up to £16,140 in Exclusive trim and with a 110bhp, 1.6HDi engine.

'We have priced the C3 to be competitive in its class and pitched it mid-way between classic value models and more sporty small cars. It has values from a higher segment and we think it meets family and business motoring in a unique way," added Ms Tirard.

'The engineering brief was to offer a product more aligned to comfort, status and functionality and the prices are commensurate with these qualities. They are realistic because the new C3 differs greatly from other cars.'

Cashbacks of up to £5,900 helped the Zsara Picasso become Britain's top-selling multi-purpose vehicle.