Drive a hard bargain when buying a new car
In light of the Government’s new incentive for scrapping cars over 10 years old, esure is urging the owners of such vehicles to do just that. The scheme, which has been introduced to encourage new car sales, could mean a £2,000 discount for buyers.
Esure has of offered prospective new car buyers some money-saving advice, starting with haggling. Their research shows that only 68 percent of drivers would haggle over the price of a new car. However, despite the £2,000 Government incentive when trading in cars over 10 years old, esure recommends starting negotiations with a low offer in an attempt to attain the best possible deal. In order to further enhance the deal, it has been suggested that car buyers should also make an effort to attain free accessories during the course of the sales process.
Those that are investigating a new car purchase are also recommended to check the likely insurance premium for any vehicles they have in mind. 24 percent of drivers questioned said that they would not request an insurance quote prior to buying a new car; however this could leave them at risk of unexpectedly high premiums. The research revealed that only 70 percent would actually seek confirmation that the insurance group, or the car that they are hoping to purchase, can be insured at an affordable cost or even insured at all. Insurance premiums can vary considerably from one car to the next, particularly between old and new vehicles.
Esure also warns soon-to-be new car buyers that a failure to look into finance options prior to entering into a sale can be a costly omission. The same can also be said for not making product comparisons based on their APRs and levels of flexibility. According to the research, 68 percent of those surveyed admitted to not conducting any such investigations. Just 13 percent of respondents were found to spend over a couple of hours seeking out suitable finance options before signing up for a new car.
The final piece of advice offered by esure is to stick to a budget, regardless of any pushy sales tactics. Car buyers should be geared up to walk away rather than incur an excessive outlay.
Head of Risk and Underwriting at esure car insurance, Mike Pickard, commented: “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.”
Homeowner motorists that want to take advantage of the Government’s car scrappage scheme, but do not have the necessary funds to hand, may wish to consider taking out a secured loan to fund the purchase. One of many options to fund vehicle purchase, a secured loan could even be used to buy a second vehicle if required; perhaps in a large family where several drivers are presently sharing the same car.
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