Drive down the c'08't of your new car

Research from esure shows how motorists aren't driving a hard enough bargain when it comes to buying a new '08' plate

With just over a week to go until the new '08' registration number plate hits the streets, research by esure car insurance reveals that motorists may be paying out more than they need to when buying, insuring and financing their new car by not doing their homework before stepping onto the forecourt.

With growing economic uncertainty, rising inflation and a general tightening of the purse strings, the importance of being financially shrewd and driving a hard bargain has never been so prevalent.

According to the research[1] there may be a slump in new car sales as 13 per cent of motorists are not looking to pick up a '08' plate because of the fear of losing their job whilst 32 per cent are put off by the rising cost of fuel.

A third (33%) admit that they will spend less on a new car than their current one.

Driving down the cost of...buying a new car: The price tag on a new car is never fixed in stone and haggling could potentially result in savings of hundreds of pounds, yet only two thirds of Brits (65 per cent) would negotiate or bargain on the price of the new car.

Surprisingly, Brits are more likely to negotiate at a car boot sale to save their pennies (78 per cent) rather than on a car forecourt to save their pounds.

Getting the best price for a part-exchange is also often overlooked which is a great way to cut the overall purchase cost of a new motor.

Over 2.3 million motorists admitted that if they were to trade in their current car as a part-exchange, they would not even check its current market value - on sites such as Auto Trader - before stepping into the showroom.

Even if the price offered seemed low, the majority of British motorists would just accept it for convenience - 40 per cent admitted that they wouldn't want the hassle of having to sell their car privately and a fifth (20 per cent) wouldn't have the time or patience to wait for a buyer, wanting to replace their car immediately.

Driving down the cost of...insuring a new car: Less than half of motorists (46 per cent) would contact their insurer to get an insurance quote before signing on the dotted line to buy a new car.

Without doing the relevant checks beforehand, motorists could be faced with an unexpected hefty bill or be left almost uninsurable.

Visiting a price comparison site[2] offers motorists a great way to compare the majority of the market in a matter of minutes.

Driving down the cost of...financing a new car: Thinking about finances is way down the list of motorists' priorities.

Whereas almost one in six Brits (15%) would undertake thorough research - spending over 20 hours flicking through car magazines and viewing cars- before choosing a car make and model, almost a third (30 per cent) would spend less than an hour, if any time at all, researching how to actually pay for their new car.

Women are least likely to spend any time consulting car magazines with nearly one in five (18 per cent) admitting to spending no time at all researching into a cars' suitability.

They could be losing out on significant savings or signing up for a finance deal that doesn't suit them.

Brits are also confused by finance jargon when it comes to funding the purchase of a new motor.

92 per cent of people surveyed were not able to correctly identify the meaning of the term 'lease purchase' - a popular means of finance offered at car dealerships.

Whilst 30 per cent just didn't have a clue, seven per cent thought that you had to purchase the car from a leasing company to qualify for this type of finance.

Driving down the cost of...motoring: The research further revealed that when it comes to deciding which car to buy, one in ten (10 per cent) motorists would not look into the overall running cost of the new car, dismissing important factors such as the mpg[3], road taxation, CO2 emissions, and the cost of servicing and spare parts.

These factors should all be taken into account for when choosing the best make and model.

Mike Pickard, Head of Risk and Underwriting for esure said: "We're known for being a nation of bargain hunters and are always out to get the best deal - but when it comes to buying a new car so many motorists are failing to put the theory into practice, especially women.

It's crucial for all motorists looking to buy a new '08' plate to do their homework, shop around for the best deals and be both confident and clued up in front of a salesperson - or else pay the price.

esure offers some top tips on keeping the cost of insuring a new car as low as possible: Shop around - Drivers looking to buy a new car should shop around for insurance quotes before signing on the dotted line - on price comparison sites such as GoCompare.com - as well as contacting their current insurer to see by how much their current premium will be affected to ensure that it's affordable.

Go online - The best discounts are often available by going online rather than buying over the phone.

Do your homework - Motorists should try to drive down the cost of their insurance by: finding out the car's insurance group (the higher the group, the higher the premium); checking the level of security that comes as standard and consider fitting a tracking device; and not adding modifications that could either void or increase the cost of their insurance policy.

Read the small print - When motorists shop around for car insurance, price is at the top of their minds but having a good quality product is also crucial - especially if the unexpected does happen.

Drivers should know what's included on their insurance policy and what's excluded.

Many insurers no longer offer 'driving other cars' cover and some policies don't offer courtesy cars as standard.

Review your annual mileage - Motorists should regularly review their annual mileage to make sure they're not paying more than they should by over-estimating, especially if their circumstances change - such as moving jobs closer to home or the onset of maternity leave.

[1] All research quoted is based on an ICM Poll involving the interview of a random selection of 1049 people aged 18+, by telephone between 8th and 10th February 2008.

[2] Such as moneysupermarket.com, gocompare.com and confused.com.

[3] Miles per gallon.

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