London– April 13, 2007: A research carried out by Sainsbury's Bank reveals that most motorists do not bargain else most may save over £1,500 when buying a new car.
The loans manager Steven Baillie said, "Once you have decided which new car you want, you then need to be prepared to haggle over the price you pay."
He further said that car buyers using a loan to cover the cost of their purchase should also shop around to make sure they get the best deal on their finance. At the same time, the company notes that 16% of the cost of new cars is funded by a personal loan.
Another report on ‘how to get a cheap car loan’, states that it is a common rule – ‘the higher credit score one has, the lower interest rate one gets on his auto loan’, i.e., people with a good credit score can haggle for a low interest rate deal.
Hence, the first rational thing to do is to find out the credit rating one has in the market. Also, car buyers should cross-check their account statements for errors, as incorrect application can be costly, and stay focused on the goal of getting the best possible secured or unsecured loan deal.
The report also states that people should avoid taking dealer finance. Though many car dealers offer credit assistance, their offers are usually more costly and restrictive than those offered by a bank or a credit company.
Earlier this year, Moneyfacts, a leading financial services comparison firm, reported that the personal loans market in the UK is extremely competitive. And, consumers should take advantage of the growing competition to avail low interest offers.