Drive a Hard Bargain: Why you should Haggle for your New Car
04 Nov 2009 Tell a Friend
It appears that many motorists are shy about haggling over the price of a new car, according to research carried out by Sainsbury's Finance. Out of the 1.14 million people planning to buy a car between September 2009 and February 2010, around 10% said that they would not expect to haggle at all.
These non-hagglers might change their mind about this however if they realised they could get a discount of up to 50 per cent off the shop price for the car. What Car? Actually recommends that the average discount you should expect on a new car is around £1893.
Steven Baillie, Head of Sainsbury's Loans said: "The car industry is still going through a difficult period, with sales of new cars in September for example down around 20% on previous years(5) despite some help from the Government's car scrappage scheme.
"From the buyer's point of view this means that now is a good time to negotiate a significant discount on the price of a new vehicle. Our research suggests that with stereotypical British reserve, many of us don't haggle hard despite the big savings that can be made, so we'd urge car buyers to give it a go."
The government recently announced plans to add an additional £100 million of funding to the scrappage scheme, whereby car dealers that are signed up to the scheme would give car buyers £2,000 off the cost of a new car if they agree for their old car to be scrapped. This means that the scheme will now cover up to 400,000 vehicles in the UK. To check if your car is eligible for the scrappage scheme, read the government's scrappage scheme guide here.
When haggling over a new car purchase, it helps to do your research in advance. What Car? has published a guide showing the average discount you should expect on a particular make of car. Don't fall victim to crafty safes techniques; if you have a set budget and a preference on the make and model of car, a hefty discount on a more expensive car is not a good deal.
Also, if you need a car loan in order to purchase the vehicle, make sure you shop around for the best deal. According to Sainsbury's Finance, around 26% of new cards purchased in the next 6 months will be financed by car loans, and asking for quotes from a number of different providers will ensure that you find a competitive rate. The haggling doesn't necessary have to end at the dealer's yard. If you see a car loan rate that you like, ask your bank if they are willing to match it. You may find that they will do so, in order to win your business.