Know the value of your car

Sainsbury’s Bank is urging owners of second hand cars to make sure they know their car’s true value before setting off to a dealer’s show room or advertising their vehicle for sale.

The bank believes knowing the true value of your vehicle will help to ensure you’ll get a fair price for it when you come to sell. Indeed research from the bank indicates that between October 2005 and March 2006 alone, 5.06 million people are planning to buy a second hand car and the average price they are prepared to pay is £4,799.

According to the bank, people looking to sell their car or buy a second hand one should do some careful research into the potential value of the vehicle. The bank offers a new ‘Valuation Tool’, powered by WhatCar?, which helps motorists understand the potential market value of a second hand car by simply entering its details (make, model and mileage). This service is part of Sainsbury’s Bank’s car purchase scheme, which offers some of the most competitive prices available for brand new cars because of discounts it has been able to negotiate from manufacturers. The bank will accept second hand cars in part-exchange for new ones bought through Drive.

Valerie Wood, car purchase scheme manager, Sainsbury’s Bank said: "Before selling or buying any car, it’s important to have a good understanding of its true value. This will help ensure that you obtain or pay a fair price and will help with any haggling that you do. A poor understanding of the true value of a vehicle might explain why 47% of people planning to buy a second hand car are only prepared to haggle slightly over the price or not at all."

On a regional basis, the South East has the largest number of people planning to buy a second hand car followed by London.

Valerie Wood, Sainsbury’s Bank: It’s also worth thinking about the part exchange value offered by a dealer in tandem with the discount on the new model you wish to purchase. The price they’ll give you for the old car may sound great but the corresponding discount may not be. We are able to offer some of the most competitive prices available for brand new cars because of discounts we have been able to negotiate from manufacturers."

Sainsbury’s Bank’s car purchase scheme offers a very flexible way in which to purchase a brand new car 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 and in some cases it can beat the ‘on the road’ price quoted by manufacturers by as much as £3,500.

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.