Negotiating a Price

Many of us are nervous when it comes to the idea of haggling, but, without it, you could end up spending thousands of pounds more for a new car than you have to. 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. Prestige marques tend not to offer many discounts, and 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.

However, haggling is always a good idea, 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! Take a look at the following pointers to help you get the best deal.

• 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.
• 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.
• 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.
• 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.
• 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.
• Don't be afraid to walk away if you can't reach the price that you're looking for. There will always be always another car and another deal.