Loans customers 'should haggle with car dealers'
04 November 2009 16:04:47
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| Car buyers are not putting their personal loans to best use. |
A new report from Sainsbury's Finance showed that 121,000 of the 1.14 million Britons planning to buy a new vehicle between September 2009 and February 2010 would not haggle on the dealer's list price.
The provider added that the amount spent on the cars, of which 26% will be provided by personal loan credit, would be reduced by up to £229m over the six-month period if all customers bartered with their dealer.
According to the report, the vehicle's price can be reduced by as much as 50% if the buyer negotiates well.
These discounts would reduce both the initial outlay on the car and the size of the personal loan required by the buyer.
Steven Baillie, head of Sainsbury's Loans, said: "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."
He added: "As well as obtaining a good deal on a new car, it's also important to shop around for a competitive rate if you are planning to use a loan to help finance your purchase."
Figures from the lender suggest that price negotiations have become increasingly unpopular over recent months, despite the financial pressures of the ongoing recession.
Between March and August 2009, 67% of buyers were willing to haggle "hard" or "very hard" on the price of their new car.
This total had dropped to 52% by September.
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