Buyers expect to save £800 on average by negotiating with car sales staff(1)
Taking out a personal loan to fund a new car gives buyers extra bargaining power
Sainsbury’s Bank is currently offering Nectar card holders a rate of 3.5% APR Representative on personal loans between £7,500 and £15,000 (taken over one to three years)(2)
Sainsbury’s Bank’s bi-annual car buying index has revealed we are a nation of canny car buyers with 89%(1) of potential purchasers saying they will bargain over the price of their next car. Of this number, almost a quarter (23%) said they plan to negotiate very hard, over a third (35%) said they will negotiate fairly hard and four in ten (42%) revealed they will haggle slightly.
On average, buyers expect to negotiate £807 off the price of their purchase. The research suggests that men are more likely to haggle (92%) than women (85%). They also expect to negotiate a saving of almost £200 more than women when trying to get a better price, expecting an average saving of £889 vs £696.
Simon Ranson, Head of Banking at Sainsbury’s Bank said: “It’s encouraging to see that so many people are prepared to haggle and get the best price for the car they want. Using a personal loan gives a buyer far wider choice be it online, local dealer or directly from the owner, as well as added bargaining power as they have cash in hand.”
Five money saving tips when buying a car:
Know the market – research prices on similar cars (including age and mileage) offered by other dealerships or private sellers, including online
Look for cars that are already discounted, this could mean the dealer might have more pricing flexibility
Keep your excitement in check and don’t look too keen – make them think that you are prepared to walk away
If you have seen a price from an online seller, ask the dealership to match it or at least reduce the price they are offering
Go at a time when the forecourt is less busy, giving more time to talk to and negotiate with the sales staff.
Sainsbury’s Bank’s Price Promise Guarantee
Sainsbury’s Bank also offers a Price Promise Guarantee(3) which means that if customers are offered a “like for like” personal loan that has a lower APR with another lender, the Bank will beat it by 0.1%. This is subject to qualifying for the Offer and customers must not have already accepted its loan offer by signing and returning a Sainsbury’s Loan agreement. Car dealership loans and finance are excluded.
Ends
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
For further information, please contact:
Timi Merriman-Johnson Lorna Gilmour
Citigate Dewe Rogerson Sainsbury’s Bank
020 7282 2989 0131 286 0786
Notes to editors:
Research commissioned by Sainsbury’s Bank and conducted by ICM Unlimited. ICM interviewed a random sample of 2,019 GB adults aged 18+ online between 5th – 7th August 2015. Surveys were conducted across the country and the results have been weighted to the profile of all adults. Some figures have been rounded. ICM is a member of the British Polling Council and abides by its rules. Further information at icmunlimited.com
Rate correct at date of issue. The actual rate offered to customers may be higher depending on the individual customer’s personal circumstances, credit assessment procedures and other related factors.
Multiple credit searches may make obtaining future credit more difficult. Price Promise Guarantee Terms and Conditions: The Price Promise Guarantee (“the Offer”) is only available to individuals who successfully apply for (and subsequently open) a Sainsbury’s Personal Loan (“the Loan”). Claims under the Offer must be received within 28 days after the Sainsbury’s Loan has been approved. Claims under the Offer will not be accepted after the Sainsbury’s Loan offer has been accepted by signing and returning the Sainsbury’s Loan agreement. Customers must provide us with a written offer from the other lender in the same name as the Loan offered by Sainsbury’s. In most cases a photocopy of the loan agreement will suffice but we may ask customers to provide the original agreement. If customers provide an original document, we will return this to the customer within 5 days of assessing the customer’s claim. Photocopies will not be returned and will be securely destroyed by us. Sainsbury’s will verify the validity of the customer’s claim within 5 business days of receiving the customer’s request and notify the customer of the result. A “Lower rate” means a lower Annual Percentage Rate (APR) of an alternative unsecured, fixed rate loan from a lender, compared on a “like for like” basis. We will assess “like for like” based on features such as, but not limited to, length of loan, fixed loan amount, repayment structure (including interest and set up fees (if any). The Lower rate must be available to the general public and be verifiable by Sainsbury’s. The Lower rate must have been offered and must still be available to the customer at the time of the claim. The Offer does not apply to the following rate or loan types:
– Loans where the funds are not available for immediate use
– Discount rates offered only to members of groups or individuals who meet previously specified criteria;
– Rates that are not immediately available, promotions that are not at everyday rates and products which are sold under different terms and conditions, such as special financing (i.e. dealer loans, promotional loans for specific goods);
– Loans that are secured on land, investments or goods.
– Any personal products being charged interest at a variable rate;
– Any personal and non personal loan type products including but not limited to lease, contract hire, hire purchase or conditional sale agreements;
– Loan agreements where interest has been temporarily or permanently suspended (including deferred payments and 0% loans for an initial period);
– Loan agreements where the funds are to support periods of study, or the period immediately following completion of studies (for example, student loans or graduate loans).
If the claim is successful we will reduce the APR on the Sainsbury’s Loan to below that of the alternative lender by 0.1%. e.g. If the alternative lender formally offers the customer a rate of 6.9% APR, the claim is successful and 6.9% APR is lower than our rate offered we will reduce our offer rate to 6.8% APR. We reserve the right to modify or cancel the Offer at any time without prior notice.
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