Monday, 7 April 2008 12:00 AM
Sainsbury’s Finance has revealed the results of new research into haggling in the automotive market, which finds that not negotiating over price could cost motorists dearly.
British motorists could save themselves £286 million if they were prepared to haggle on the price of their new car, Sainsbury’s found.
195,000 of the 1.5 million people planning to buy a brand new car between March and August 2008 state they do not intend to haggle at all over the price.
Sainsbury’s Bank believes a further 403,000 people could also end up paying too much for their new vehicles because they are only prepared to haggle “slightly” over price.
62 per cent of people claimed they would haggle more aggressively.
The research also found shopping around for car finance could also lead to big savings. 24.5 per cent of the purchase of a brand new car would be financed through a loan, so a competitive rate would be beneficial.
“Our latest research reveals that the number of people looking to buy a brand new car has dropped by more than half a million on the previous six months,” said Steven Baillie, head of Sainsbury’s Loans.
“Clearly people are more concerned about their finances and so those still looking to buy should haggle as hard as possible. Furthermore, those looking to finance their purchase through a loan need to make sure they shop around to find the best deal for them.”
Sainsbury’s Finance provide a list of tips for those not proficient in the art of haggling:
- – You can often pick up a good price on a new car just before the introduction of new registration plates as any cars left over from the previous new registration become less attractive
- – When manufacturers are introducing a new model, you can sometimes pick up a great deal on the old model
- – Car dealers looking for a quick sale will sometimes throw in additional features that are not included as standard (e.g. better car stereos; sunroofs etc)
- – Be aware of the discounts you can obtain on the car you want. Having knowledge of these can be very useful when negotiating on price. The What Car? Target Price will show you the average price that you can expect to pay for a car, which on average is currently around £1,468 below the list price (April 2008)
- – Know what car you want and the size of your budget and stick to it
- – Keep your excitement in check. If you look too keen the car dealer may be less willing to negotiate on price. Make them think that you are prepared to walk away.