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A new report has highlighted how UK consumers are haggling strong discounts in the showrooms in 2012. According to the research undertaken by AutoTrader, the average discount negotiated by consumers is £939, and three in five buyers paid less than the asking price in the third quarter of the year.
The report also highlights that men may be better negotiators than women, with males haggling an average discount of £1,029 as opposed to an average of £706 by female buyers.
However, in negotiating an overall deal the process may not be all good news. Buyers appear to be far less satisfied with a part exchange price they have been offered, which may temper the fact they have got a good deal on the new purchase. AutoTrader report that customers are seven percent less satisfied with their part exchange value than they were the month before.
What may be the possible explanation for this?
Perhaps, as AutoTrader suggest, consumers are simply unrealistic on the value of their vehicle and this can easily occur as often the values of vehicles are compared with forecourt prices. However, there could also be an element having their 'dealing' margin diminished with having to discount the cost of the new car. Having to give margin away in this manner will naturally reduce any 'over allowance' a dealer can offer on a part exchange vehicle.
Of course if you have no part exchange vehicle this has little effect, and in a competitive sales environment the clear signal is that motor showrooms are a place that discounts are readily offered at the moment.
At GapInsurance123 we would urge you to push for the best price on your vehicle purchase. Of course getting a great deal this time round may be difficult to replicate in the future. When considering Gap Insurance on a discounted car, Vehicle Replacement Insurance may be a better option than Return to Invoice.