How Car Buyers Can Save £587 Million This September

Britain’s new car buyers could pocket over £587 million - an average of £1354 each - just by haggling over the price of their 55-plate new car this September. By following What Car?’s ‘Golden Rules of Car Buying’ that figure could climb even higher.

Rule One: Never Pay More Than The Target Price

The latest round of research for the What Car? Target Price - a realistic discounted figure for every new car on sale - shows that four-figure discounts are available on most mainstream cars. The average saving is £1354.

What Car?’s editor, David Motton, said: ‘If every new car sold during the plate-change month of September is sold at Target Price, that makes a total saving of over £587m.’

Rule Two: ShopAround For Finance

Most car buyers know they need to haggle to buy a new car at a fair price. Many then risk throwing away any money saved by not shopping around for finance.

High street and internet lenders are offering loan rates as low as 5.8% APR, while standard-rate dealer finance often charges interest at 10% APR or more.

What Car?’s editor, David Motton, said: ‘Don’t assume the finance a dealer offers is competitive. Sign up to the first Hire Purchase deal put in front of you and you could pay thousands of pounds over the odds.’

Rule Three: You Can Still Haggle On Special Offers

Salesmen will sometimes try to persuade you that a cashback deal or interest-free finance package puts an end to haggling.

‘Don’t believe a word of it,’ said David Motton. ‘These buying incentives are almost always paid for by the manufacturer, so the dealer still has a profit margin to play with. You can - and should - keep on haggling.’

Rule Four: Concentrate On The‘Cost To Change’

Don’t just look at the price of the car you’re buying. Think about how much you’re being offered for your old car, too. It’s the difference between the two - the cost to change - which is the true measure of a good deal.

‘Sometimes a salesman will give a great deal on a new car but undervalue your part-exchange. Guard against this by checking how much your car is worth in the What Car? Price Guide, or online at Whatcar.com.’

Rule Five: Be Ready To Walk Away

New car sales, especially to private buyers, are well down this year. It’s a buyer’s market.

David Motton said: ‘The salesman needs you more than you need them. There are plenty of other dealers ready to cut the price if your local dealer won’t.’

1 September 2005 Staff
 
 

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