With many people being put off large purchases during the economic downturn, the number of new cars being sold has dwindled considerably. A number of car manufacturers showed signs that they were struggling this year, with some reporting a decline in double figures.

For those who are looking for a new car though, this means that dealers across the land will be particularly glad of your custom in these troubled times. That being the case, new advice from a leading loan provider has described how Brits are spending unnecessary amounts on cars because the don't take full advantage of their ability to haggle.

For many people haggling is something that is usually only done on a holiday to the bazaars of North Africa but this needn't be the case. Consumers can actually save substantial sums on their purchases just by being a little pushy.

Bargaining

"The car industry is facing a very difficult time, with sales of new cars in February for example down 22% on a year ago. This means that now is one of the best times ever to negotiate a significant discount on the price of a new vehicle.” said Steven Baillie from Sainsbury's Loans.

This advice by the loan provider is definitely worth following up because according to the figures, the amount that can be saved on the list price of a brand-new car can be up to 50%. The average buyer should be able to negotiate a discount of nearly £2000 on their vehicle, which has almost doubled in the last few years as car dealers become worried about lack of custom.

“It's a real shame some people still don't feel confident in doing so. We'd urge the 17,000 would-be purchasers that are undecided as to whether they'll try to negotiate a discount to give it a go.” Added Baillie.

Securing a loan

Using bargaining while purchasing the vehicle definitely stands you in good stead and this also applies to looking around for a good car loan, which will finance you dream car.

Because of the credit-crunch many lenders have considerably tightened their lending practices but it is not the end of the world for those with less than perfect credit. There are still some good deals to be had out there, particularly if you shop around.

Going online to a price comparison site will enable you to get a broad range of options instead of applying to each individual insurer separately. The comparison company will check through dozens of deals that could be right for you and then see which one offers you the best deal.