How to Haggle and Save Hundreds on a New Car


Buying a car can be one of the most expensive decisions we make, and yet far too many of us end up paying over the odds for a new set of wheels. In the current uncertain climate, it's more important than ever to get a good price on your reliable run-around - or sporty little number - and one of the easiest ways of doing this is by haggling.


Don't be afraid of negotiating a better deal

However, new findings show that of the 1.14 million (*) people planning to buy a brand new car between September 2009 and February 2010, 121,000 (*) do not plan to bargain down the price they pay. This is despite the fact that - depending on the car - you could get a discount of up to 50 per cent (**) on the list price.

In fact, figures suggest the average discount you should be aiming for on a brand new car is around £1,893 (***) which means that overall, British motorists could save themselves a huge £229 million (*) over the next six months.


Seize the opportunity to drive a hard bargain

Few of us enjoy haggling, but there's no time like the present to cast off your inhibitions and try your luck, as despite the Government's scrappage scheme - introduced in May offering “cash for bangers” - the car industry is still going through a difficult period. (See: Buy a new set of wheels as discount deadlines loom.)

With figures showing that the sales of new cars in September were down 20 per cent (****) on previous years, this really is the perfect time to put your bartering skills into practice.

“Now is a good time to negotiate a significant discount on the price of a new vehicle,” says Steven Baillie from Sainsbury's Finance. “With typical British reserve, many of us don't haggle hard - despite the big savings that can be made. We'd urge buyers to give it a go.”


Homework is the key to confidence

Haggling may be an art, but it doesn't have to be difficult - here's our top tips to steer you through the process:

  • Do your research - knowing the discount you want to aim for will help you haggle more effectively, so make sure you're armed with as much information as possible.
  • Set a budget - enter into negotiations with a fixed idea of the car you want and the amount you're happy to spend - and stick to it.
  • Pick your person - identify the right person to negotiate with and be courteous; your chances will improve if they like you.
  • Show no emotion - try and keep your excitement in check when you're haggling, as if you look too keen, the dealer may be less willing to negotiate on price.
  • Ask for extras - if you can't persuade staff to give you a discount, try and get additional features thrown into the deal, such as a better car stereo.


Pick your moment

If you're planning to haggle, it's worth thinking about timing, as you can often pick up a good price on a new car just before the introduction of new registration plates, as cars left over from the previous registration become less attractive. Similarly, one of the best times to get a great deal on an old model is when manufacturers are introducing a new one.


Learn when to quit

One of the key elements of successful haggling is knowing when you have got a good deal and not pushing your luck. At the same time, if you're not able to strike a deal, it's equally important to know when to walk away - and to show that you mean business; after all, there are always other cars.

Top tips to drive down the cost:

As well as haggling, there are some other simple steps to make a tidy saving:
  • Shop around for the best deal on a loan.
  • Consider a 0 per cent finance deal from your car dealer - but note you may have to pay a hefty deposit
  • Do the maths to work out if a leasing deal will be cheaper.
  • Look at cars that have been pre-registered, as you essentially get a nearly brand-new car at a second-hand price.
  • If you have an exact model in mind, check out an internet-based car broker.

Notes:

(*) Sainsbury's Finance
(**) Car broker Broadspeed.com
(***) What Car? Target Price 2009
(****) Society of Motor Manufacturers and Traders (SMMT), September 2009

Sourced from Confused.com Haggling Tips for buying new car

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