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Britons urged to 'haggle' over car finance

Thousands of Brits take out car loans each year but could be paying too much because they are not prepared to negotiate, new research has revealed.

Thousands of Brits take out car loans each year but could be paying too much because they are not prepared to negotiate, new research has revealed.

According to a report from Sainsbury's Bank, some 5.5 million people plan to buy a second hand car over the next six months, 931,000 of which will take out a car loan, and these motorists stand to miss out on a combined saving of £612 million simply because they will not haggle over the price of a vehicle.

"Once you have decided which new car you want, you then need to be prepared to haggle over the price you pay," said Steven Baillie, loans manager at Sainsbury's Bank.

"If you are financing the purchase with a loan, you also need to make sure that you shop around to find the right option for you," he added.

The report also revealed the same principal applies to brand new cars and suggests buyers could typically save £1,500 on the price of a new vehicle if they negotiate with the dealer, thereby reducing car finance costs.

However, 45 per cent of people planning to purchase a new car over the next six months told researchers they were unlikely to haggle over the price.

Meanwhile, recent figures show the number of new cars on the road is increasing as sales for March 2007 were up 3.1 per cent on the same month in 2006.

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