Car buyers urged to get the upper hand with a same day loan

Motorists looking to buy a new car after the ‘58' registrations become available are being urged by Alliance & Leicester to ensure they have the upper hand when heading to the showroom to make their purchase.

To help get the best deal, Alliance & Leicester can give personal loan customers an ace to keep up their sleeve when trying to negotiate a good deal.

By agreeing a personal loan within minutes, and providing customers with the money on the same day, Alliance & Leicester can give motorists a virtual wad of notes in their pocket, which could lead to a bigger discount as a result of being able to seal the deal there and then, or even allow you to negotiate some important extras like an extended warranty, MP3 player or cruise control.

Mark Boyle, Personal Loans Manager at Alliance & Leicester said: "When buying a car, it is in a battle of wills with the salesman. They understandably, want to sell at the highest possible price, and motorists need all the tools available to side-step the patter and make sure they do not pay over the odds.

"Having the money to hand means motorists can concentrate on buying at the best price, without being enticed into taking out pricey car dealer finance that can see them lumbered with double-digit interest rates. It might also swing things in the buyer's favour when thrashing out a deal for part-exchanging an old motor. Getting finance arranged before going shopping for cars is essential if you want to hold the balance of power in negotiating a good deal."

In addition to ensuring that finance is in place before going to a car dealer, Alliance & Leicester is also offering the following top tips to potential buyers, to help them win the battle of the forecourt:

Do your research before you go to the car showroom. Know what type of car you want that suits your needs. Do not get charmed into looking at something bigger, and more expensive.

Be realistic about the amount you will get for your current car in part exchange and base this on its age, condition and mileage. Make sure the car is clean inside and out, and make sure all the paperwork e.g. log book, service history and MoT are up to date.

Watch out for hidden costs, like delivery charges, number plates, administration charges, or the cost of a warranty.

Take the car for as long a test drive as you can, possibly longer than the salesman would want. Use this time wisely and check the brakes, that there is a smooth change of gear, that there is no unusual rattling or banging noises and that there is no excessive smoke coming from the exhaust. Also check the condition of the tyres, as replacing these soon after you buy the car could be quite costly, and may need to be reflected in the price you pay.

Haggle as much as you can to get the best deal. If a salesman says he is going to speak to his manager about a deal, ask to speak to them yourself to negotiate directly with the decision-maker.

Mark Boyle added: "Buying a car is often the second most expensive purchase people make, so it is wise to do research before heading to the showroom, and be prepared to haggle when you are there. It could save you hundreds of pounds or more. Even if you see a car that you want in the morning, you could have the funds available that same day, enabling you to seal the deal at the best price."

Steve Fowler, What Car? Group Editor said: "With so many new cars being bought with finance, it's vital that buyers arm themselves with information before they go into the dealership. It's important to know what sort of finance packages and rates are available from other lenders so you can compare what's on offer from the dealer."