MG 4 owner compensation for $10,000 price cut is a discount on another MG

MG 4 owners who purchased prior to a $10,000 price cut will be offered a form of compensation – but only if they trade in their car for another MG.

Buyers of an MG 4 electric car in 2024 who took delivery before substantial price cuts of up to $10,000 will be offered a discount on their next MG purchase – rather than money back from the purchase of their vehicle.

Drive reported last month that MG 4 customers who took delivery in 2024 – but before the price cuts on 20 September – would be presented some form of compensation for having up to a quarter of the new price of their vehicle wiped overnight.

Now it has been revealed MG’s “offer” is not money back off the price of their current vehicle, nor free servicing, an extended warranty, or any other item for their current MG 4.

Instead, customers will be eligible for a discount on the purchase of a new MG – provided they trade in their current car.

MORE: MG 4 electric car demand increased five-fold after discounts up to $10,000 – executive

It is the same national fleet discount presented to businesses purchasing large numbers of MG vehicles, rather than a special offer for retail buyers.

Customers can only take advantage of the offer after trading in the MG 4 they purchased before the price cut – and not on a second MG vehicle bought for a family member or friend.

Dealers canvassed by Drive suggested the discount would amount to multiple thousands of dollars off the vehicle’s price – but it is unclear if it would cover the $10,000 price cut on the Excite 51.

MORE: Do you need home charging to live with an EV? 2024 MG 4 long-term review

Drive contacted MG Motor Australia to confirm if there is an expiry date on the offer, or if it can be used in multiple years’ time, when many customers would be ready to trade in their car.

However, the company declined to comment, with a representative saying in a written statement: “MG have reiterated that any compensation remains confidential between MG, the dealer and the customer.”

Owners affected by the price cut have taken to social media to criticise MG’s ‘compensation’ offer.

“This hardly feels like compensation to me,” one customer told Drive, “as trade price now after this heavy discount would make you go even more backwards.”

MORE: Electric cars Australia – Cheapest, best and newest electric vehicles (EVs) and hybrids

Another customer said on social media: “Let me see if I get this: you originally buy an MG for $40,000. The price drops later to $30,000 so you have lost $10,000 already.

“So if you trade your car in for a new one straight away you’ve already lost $10,000 plus whatever devaluation occurs for driving the car out of the dealership.

“So another new MG would have to cost you well below $30,000 to make it a worthwhile compensation? That’ll never happen.”

Since the price cuts in late September, the MG 4 Excite 51 has risen in price by $2000 – from $30,990 to $32,990 drive-away – but it is still up to $8425 less expensive than its early September price.

MORE: 2024 MG 4 electric car price to rise after limited-time discount expires

‘Factory bonuses’ – manufacturer-funded discounts – of up to $8000 have remained on the rest of the MG 4 line-up.

MG Motor Australia chief commercial officer Giles Belcher told Drive last month that in the days after the September 20 price cuts, MG 4 demand surged by “five times”.

“In the last 10 days of the month, we doubled what we would normally sell in a month,” he said.

“That was the initial surge, if you like, but it settled down at a very, very healthy run rate. We’re very happy.”

MORE: Tesla slashes prices in Australia for third time in two months, up to $5000 off Model Y, Model 3

He said the company is happy with its decision to slash prices, despite the impact it may have had on resale values for customers who purchased prior to the changes.

“You always have to weigh up various factors when you make a decision … Resale value is difficult – you can only control what you can control,” Belcher said.

“Obviously pricing has a fairly big impact on what cars will be worth down the track, so we have to weigh up all these things, but we think on balance it was the right move for us at that point.”

The post MG 4 owner compensation for $10,000 price cut is a discount on another MG appeared first on Drive.