Sainsbury's Bank recommends tat new car buyers haggle over the price of new cars. Their study shows that new car buyers are losing out on an average possible price reduction of over £1,500. Given the number of new car purchases, this means that new car buyers are paying over £600 million too much every year.

The bank also recommends haggling or shopping around for better deals on finance - also on things like gap insurance and other income protection cover that is often pushed by dealers.

Ways of reducing the price of a new car include being prepared to accept a registration plate that is just prior to a change in the letter, accepting a lesser specification model, asking for freebies such as in-car hi fi, sunroof, etc.

Being prepared with all your facts and figures before you go to the dealers is the best way forward. Then, you will know your bargaining stance better and will be able to use it to greater advantage.

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