Don't ‘scrap' your chances of getting a forecourt bargain

Last Friday (1 May), the Government's scrappage scheme for cars over ten years old was launched to help boost new car sales. With over 9 million eligible cars on British roads, esure car insurance urges motorists looking to ditch their old motor and take advantage of this £2,000 cash incentive to make sure they still haggle for the best deal and do their homework on both finance packages and car insurance before signing on the dotted line.

esure offers motorists looking to buy a new car some money saving tips:

Don't see the £2,000 incentive as a deterrent to haggle:

Research by esure reveals that even with the current strain on household budgets, only two thirds (68 per cent) of motorists questioned admitted they would always bargain down the price tag of a new car. However, even with this cash bonus of £2,000, motorists looking to buy a new car should start with a low offer price and try to get some accessories such as new car mats or six months of road tax thrown in to get the best deal possible.

Get an insurance quote - premiums for new vs old cars differ:

esure's research shows that motorists who are looking to buy a new car are potentially leaving themselves exposed to higher premiums by not checking ahead. A quarter (24 per cent) of motorists surveyed wouldn't get an insurance quote before deciding on a new car purchase.

In fact, only 70 per cent would check the insurance group or the make and model of car they're looking to buy to ensure that the new insurance premium is within budget and that they are still insurable. When upgrading from a used, lower value car to a higher value brand new car it's even more important to do your homework before signing on the dotted line - as premiums may differ considerably.

Research finance deals before walking on the forecourt:

Not researching which type of finance options are the most suitable and not comparing APRs or a product's flexibility can cost motorists dear. Alarmingly, 68 per cent of motorists surveyed said they don't do any research at all on finance deals available to them when buying a car - such as looking for the best rates on loans or credit cards.

In fact, only 13 per cent of motorists spend more than a couple of hours finding the most suitable finance option before signing on the dotted line and paying for their car.

Set a budget and stick to it:

Always stay within budget and don't fall for the hard sell is crucial - especially when you're making a significant upgrade to your vehicle in terms of age and value. If a salesman won't budge on price, be prepared to walk away rather than pay over the odds.

Mike Pickard, Head of Risk and Underwriting at esure car insurance, said: "The introduction of the vehicle scrappage scheme is a great incentive for motorists to step back onto forecourts across the UK and upgrade their older cars for new ones - but they should still do their homework, shop around and haggle for the best deal possible.

"The make and model of your car, its value and insurance group will all have an impact on your insurance premium, so motorists must make smart decisions when deciding on the right car for them and have a clear budget in mind at the outset."