Research done by Sainsbury’s Finance says the fact that people are starting to ‘haggle’ more over the price of new cars is an indication of the people frugally adjusting in these uncertain financial times.
However, car buyers are warned that they’re still losing out. Its findings reveal that British motorists could save themselves an incredible £163 million over the next six months, if they were prepared to haggle on the price of their new car.
Of the 1.41 million people who bought a new car between March and August 2010, around 96,000 say they didn’t plan on haggling at all over the price they paid. This is despite the fact that depending on the car they bought, they could have obtained a discount of up to 50% on the list price.
Research also highlighted that a further 453,000 people could pay too much for their brand new cars over the next six months because they are only prepared to haggle ‘slightly’ over the price.
Banks and evidence from this research encourages car-buyers to shop around for the car that suits them best at a competitive rate. It seems that these recessionary times have finally convinced many to try and look for the deals, especially if a loan is being used to pay. Around 21% of the money paid for brand new cars in the next six months will be financed through loans.
Tips for bargaining and car-shopping:
• 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. Look for websites that will show you the average discount that you should aim to achieve for a particular make of car.
• 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.
