Drivers Advised To Bargain On Car Costs

Motorists could be unwittingly placing themselves under unnecessary financial strain, a new study shows.

In research carried out by Sainsbury's Loans, it was revealed that 195,000 out of the 1.5 million consumers set to buy a brand new car between March and August of this year claim that they will not haggle on the price of the vehicle. However, due to such a decision the financial services provider stated that the average consumer could be missing out on savings of 1,468 pounds. Overall, it was claimed that these Britons could be 268 million pounds better off by attempting to bargain with car dealers.

By paying too much money than what might be necessary when buying a car, it could be possible that consumers experience increased difficulty in meeting other motor-related expenses such as MOT, insurance, petrol and tax costs. This could extend to them encountering problems with various other financial commitments such as personal loans, store and credit cards and utility bills.

Furthermore, the money lender revealed that 403,000 Britons are set to haggle only "slightly" over the cost of a new vehicle. However, some 62 per cent of consumers looking to purchase a car will be more assertive when bargaining and are set to do so either "hard" or "very hard". It was also claimed that as just under a quarter (24.5 per cent) of new car purchasing is to be financed via a loan, it is important that consumers take the time to search for a competitively-priced deal.

Steven Baillie, head of Sainsbury's Loans, said: "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. 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."

In an attempt to secure a good deal on a car, motorists were made aware that a "great deal" can be had on a slightly older model of automobile should a manufacturer release a new version of the vehicle. Furthermore, consumers were advised to be aware of how much money they have in their budget to spend and make sure that they stick to that amount. Additionally, Sainsbury's reported that car dealers who are looking for a quick sale on an automobile may include extras, such as a sunroof and car stereo, which are not incorporated as standard.

For those looking for an effective way to fund the purchase of a vehicle, taking out a personal loan may be beneficial. By selecting a cheap loan, it is possible that motorists may be left with affordable repayments to make on their borrowing. A quick loan to finance a car purchase may be particularly advisable for motorists after a recent study by AA Personal Loans revealed about one in four of those looking to get a vehicle during the next 12 months want a model which has environmentally-friendly credentials.