Britons should haggle more aggressively

Around 18.5 per cent of the purchase of a new car is typically financed through a loan, research conducted by TNS has found. As a result, the need to shop around for the best available deal is crucial - as is the need to haggle when it comes to using the loan to acquire a vehicle.

To emphasise this point, a study by What Car in May this year showed that motorists could save almost £1,500 on the price of a brand new car simply through engaging in a spot of haggling.

A poll by Sainsbury's Bank found that 426,000 people will haggle when buying a new car between the months of September 2007 and February 2008. This will achieve a combined saving of £675.21 million should they all save the maximum £1,484, significantly reducing the amount of the purchase that needs to be funded by taking out a personal loan.

However, it was also found that 549,000 people pay too much because they are reluctant to haggle, which suggests they need to take lessons off their more brazen counterparts. While 53 per cent of people who intend to buy a new car plan to haggle in an aggressive manner, the remainder will not do so at all or will only haggle "slightly" over the price.

In order to help consumers, Sainsbury's has offered a few tips on the art of securing the best deal when it comes to car buying. Top of the list is choosing the best time to buy - with the cheapest deals often found immediately before a new registration plate is introduced. Buying a particular car model in the lead-up to the launch of a new version could also result in a significant saving, it is claimed.

Meanwhile, should price negotiations hit a snag it's always worth remembering that dealers are often willing to throw in extras such as improved car stereos and sunroofs to appease buyers. Knowing your budget and sticking to it is also advocated, and finally it's important not to look too keen, as this is a sure sign for dealers that they don't have to move too far on price.

These tips should prove especially useful given that Lisa Taylor, analyst at Moneyfacts.co.uk, has noted that increasing interest rates have added to the cost of taking out a personal loan. This further underlines the importance of conducting research and securing the most appropriate financial product.