Are you missing out on an opportunity to save money when you buy a new car? Unless you are prepared to haggle you could well be losing out.
According to research(1) from Sainsbury’s Bank, of those people intending to buy a car between 1st March and 1 September this year, only 17% plan to haggle ‘hard’ over the price.
Interestingly nearly 10% said either they won’t consider negotiating on price, or that they were not aware they could do this.
With the average amount car buyers expect to save by haggling exceeding 13%, clearly there is an opportunity to save money that those who don’t haggle could be losing out on.
Robert Oag, Head of Loans at Sainsbury’s Bank said: “Buying a car is a huge financial commitment and you should try and secure the best possible price you can. Our research shows that 57% of those planning to buy a car intend to use some form of loan. Those looking to finance their purchase should make sure they shop around and find a competitive rate.”
Sainsbury’s Bank has a loan calculator to help customers gauge what their monthly repayments and total repayable amount would be with different Sainsbury’s Bank loans.
With the help from Sainsbury’s Bank, here are 7 top tips to help you when looking to buy a car:
- When manufacturers are introducing a new model, it’s worth checking out whether there are any deals to be had on the old model, often there are
- Ask about having additional features thrown in for free that are not included as standard e.g. a sunroof and extras such as a full tank of petrol, Road tax, servicing package and MOT
- Research where you can get the best deals. Check out what other dealers are offering on the car you want to buy and check car websites such as Parkers or What Car?
- Keep cool in front of the car dealer, don’t be too keen, make them think that you are prepared to walk away
- If you’re a cash buyer don’t let the salesperson know this straight away – you may be able to negotiate a better price on the car if they believe you are going to get a finance package, which you can turn down later in the process
- Keep your maximum budget to yourself and at first offer a lower amount than you are prepared to pay
- Don’t let your excitement get the better of you. Take your time and be prepared to shop around for the best deal.
Diane Ray, MoneyHighStreet.com comments: ‘Some great input from Sainsbury’s Bank and food for thought when you set off to buy a new car.
‘Remember too that it’s not just the cost of buying a car that you have to worry about, it’s the cost of fuel and ever rising car insurance costs too that you need to consider.
‘In other words you need to be able to afford the total cost of your car ownership, not just be able to cover the purchase price.
‘Our article ‘How to beat the rising cost of car ownership‘ is well worth a read, giving you some guidance on what you can do to help reduce the total cost of your car ownership.”
Note (1) Sainsbury’s Bank commissioned Opinium Research to survey 2,012 nationally representative UK adults aged 18+ between 24-27 February 2017. Opinium Research is a member of the British Polling Council and abides by its rules). Figures have been scaled up using a nationally representative sample (51,339,000).