Peugeot finds way to younger market
Peugeot appears to have found a route to attracting younger buyers with its ‘Just Add Fuel’ sales campaign.
One year on from the launch of the campaign, it is now producing around 16 per cent of the brand’s retail sales.
More encouragingly, says a Peugeot spokesman, it is attracting younger buyers and some 62 per cent of those lured by the promise are new to the brand.
The campaign is about to get new television exposure this week and Peugoet believes it has proved to be a real deal clincher.
It is also profitable for dealers, and does not damage the brand’s image or the used values of Peugeots in the way that cutting £3,000 off the price of a new car or telling buyers that they don’t have to pay the VAT can.
Just Add Fuel – referred to as JAF internally – involves customers paying a deposit which is typically around £1,500, and then a monthly all-inclusive lease payment which varies from model to model; a 107 can be leased with a £1,500 deposit and payments of £169 a month while a 3008 requires a £2,000 deposit and £299 a month.
The single monthly payment covers all major motoring costs - comprehensive insurance, road fund licence, vehicle servicing, roadside assistance and warranty in a three-year finance package.
The big challenge was putting together the insurance part of the deal since under JAF a 60-year-old living in rural tranquillity pays exactly the same as a 25-year-old living in Liverpool.
Therefore JAF favours younger buyers and has seen an influx of those in the twenties and thirties, helping lower the average age of new Peugeot buyers to 42 from 52 – another reason the scheme is seen as such a success.
JAF is also allowing buyers who have never bought new before to do just that, with 50 per cent of customers stepping into the new car market for the first time with their used car providing enough money to pay the deposit.
Words by: Andrew Charman