Getting the Best Deal

Although many people are nervous when it comes to the idea of haggling over price, you could easily end up spending thousands of pounds more for a new car than you have to if you don't give it a go. All dealers leave themselves some margin to haggle, so if you pay the full sticker price, you'll simply be giving them a bit more profit than they expected and end up more out of pocket than you need to be. How much of a discount you'll be able to negotiate will depend on the vehicle's value and the badge it wears. You probably won't be able to get too much of a price reduction on a small car that is relatively cheap to start with, whilst prestige marques tend not to offer many discounts.

However, haggling is always worth a try, and with the right technique, you should be able to negotiate some sort of discount with the dealer - even if it's just a free tank of petrol!

Negotiation Tips

Take a look at the following pointers to help you get the best deal.

• Before going to the showroom, make sure that you have researched the types of discounts offered elsewhere. Take a look at car supermarkets, brokers and other online resources to find out the typical price you should expect to be paying.
• Make sure you know the exact specifications that you need - do not be talked into buying additional optional extras that will bump up the price.
• Check the special offers in the showroom very carefully; they may not always be the best deal. You may be able to negotiate a bigger discount on a different car and end up paying less than the one on special offer.
• It's important to remember that the salesperson's job is to try to get you to spend as much money as possible. Make sure that you have a budget in mind and stick to it.
• Whatever the asking price of the new car, offer a reasonable amount less; start at a low opening price, but be realistic. Let the salesperson negotiate you up to a price you are both happy with. You may end up closer to their initial figure than your own, but as long as you are able to knock the price down a bit, you'll have achieved your aim.
• The margins on most new cars are usually very slim, and so it may be difficult to get much of a discount at all. If this is the case, try to find something else that will help to sweeten the deal, such as an accessory or two or a few free services.