The price of used Mitsubishi models expressed as a percentage of their list prices should certainly rise under the new pricing structure, while company car drivers will reap the advantages of the price cuts in lower benefit-in-kind tax bills because benefit charges are based on a car's delivered price. The question is whether Mitsubishi's move will open the floodgates to industry-wide price reductions in 2000. Kia and Saab have already cut their prices significantly, and this week Vauxhall launched a retail cashback payment of up to £2,000 for certain models if customers forego 0% finance and deposit allowance deals.
Mitsubishi claims that the UK's new car market is virtually at a standstill, and says its radical price realignment is designed to 'restore consumer confidence'. Denis Murphy, Mitsubishi's managing director, said: 'Our customers have stayed away from the showrooms since September and we believe this will continue unless we move on price.'