Car buyers risk losing millions by not haggling

Sainsbury’s Bank today warned car buyers that they risk losing millions of pounds by not shopping around for the best deal when purchasing a new car.

Recent findings indicate that between October 2005 and March 2006, 278,000 people plan to buy a brand new car but have no intention of haggling over the price they pay. Given that, on average, they could save around £1,500 each by doing this, collectively they will over-pay by a staggering £417 million. In addition to this, an estimated further 453,000 people could also overpay for their brand new cars because they are only prepared to haggle ‘slightly’ over price. However, Sainsbury’s Bank’s car purchase scheme removes the need to haggle as it negotiates discounts on every make and model of new car.

Valerie Wood, car purchase scheme manager, Sainsbury’s Bank, said: "Haggling over the price of a new car can save you thousands of pounds so it is very much in your interest to do this. Before buying a car, motorists should have a good idea of what they want to pay and what their limits are."

On a positive note, although hundreds of thousands of car buyers still won’t haggle, the research findings do suggest that more motorists are now more prepared to try than previously. 51% of people who intended to buy a new car between February and July 2005 said they intended to haggle ‘very hard’ or ‘hard’ over the price they paid, and 29% said that they would not haggle at all. The corresponding figures for the next six months are 66% and 13%. But even for those drivers who do haggle, there is no guarantee of getting the best deal.

Car buyers planning to haggle should consider consulting the What Car? Target Price, in association with Sainsbury's Bank. This gives an achievable discount for every car make and model on sale (based on mystery shopping). By first checking Target Price (sainsburysbank.co.uk/drive), buyers can find out exactly how much discount to aim for. However, Sainsbury’s Bank’s car purchase scheme guarantees to beat Target Price every time, offering motorists even bigger discounts with no need to haggle. This also means that it consistently beats the ‘on the road price’ quoted by manufacturers, in some cases by as much as £3,500.

Sainsbury’s Bank’s car purchase scheme offers a very flexible way in which to purchase your vehicle and provides customers with hassle-free motoring and access to the very latest makes and models on the market. The bank is able to offer some of the most competitive prices available for brand new cars because of discounts it has been able to negotiate from manufacturers.

The scheme’s monthly payments are not calculated on the total cost of the car, but instead only on its depreciation plus the interest. Contracts are fixed at the outset for a two, three or four year period. The guaranteed future value of the vehicle is also set with the bank taking the risk of any further depreciation.

At the end of the agreement you can choose to either make a final payment and keep the vehicle, choose another car or simply return it owing nothing. Finally, Sainsbury’s Bank will deliver your chosen car direct to your door. Drive offers a typical 8.9% APR.

Drive, is currently offering customers a variety of special offers until 31 December 2005.