Having significantly reduced the price of its C4 electric car, with an LOA offer starting at €199/month, Citroën is taking a more combative stance. Disappointed by its declining performance in France in 2022 and the first months of 2023, the brand is aiming for a relaunch and is relying on a more aggressive commercial approach.
In fact, from 1 April, the brand is changing its strategy with regard to its L.O.A. (Lease with Option to Purchase) offers, the majority of which are used to finance new vehicles. For a long time now, Citroën has been offering L.O.A. with no initial deposit, an immediate advantage for the customer, who does not have to pay a penny to take possession of a new car, but a major disadvantage for the brand, which has had to offer higher rental rates than the majority of its competitors, who offer a higher initial rental rate.
This is changing as the brand is setting L.O.A. rents, including an increased first rent, which makes it possible to significantly reduce the prices of subsequent rents. This change in strategy is explained by the fact that the vast majority of consumers contribute to the financing of their vehicle and that, in the face of high inflation, these same consumers are more focused on the monthly price, which has always been higher for Citroën.
From now on, Citroën is offering an initial increase in rentals, which will make it possible to reduce monthly rentals with the following prices for the range
C3: from €139/month with a €2,500 deposit
C3 Aircross: from €189/month with €3,000 deposit
C4: from €219/month with €3,000 deposit
C4 X: from €249/month with €4,000 deposit
C5 Aircross: from €239/month with a €4,000 deposit
C5 X: from €359/month with €6,000 deposit
These offers are therefore more aggressive and allow Citroën to gain an advantage over these competitors. For example, Renault offers the Austral, a competitor to the C5 Aircross, from €300 per month with a €5,000 deposit, while Citroën's large SUV is available from €239 per month with a lower deposit of €4,000. . The same goes for the C4, which at €219/month with a €3,000 deposit is much more attractive than the Peugeot 308, which starts at €272/month with a €4,900 deposit. Admittedly, the equipment levels are not necessarily identical, but Citroën has made sure that the differences between the different trim levels are as small as possible to allow customers to have fun without breaking the bank.
To conclude, Citroën, stung by disappointing results, is much more combative and is replacing its prices below those of its competitors, thus increasing the attractiveness of its products. These new offers with an initial deposit, chosen by the majority of new customers, give the brand the strength to go out and win new customers after a very good month of March in terms of sales. orders, with in particular open house days that exceeded the record set in October 2021. A good omen for the coming months...v