Haggle Hatred: 2 in 3 Australians prefer not to bargain when they buy a car
More than two-thirds of Australians are at risk of getting ripped off when buying a new car, according to startling new research from Finder.
A Finder survey of 1,015 respondents revealed that just 1 in 3 Aussies (35%) haggle for a better price when buying a car.
Just over a quarter (26%) of Aussies said they are uncomfortable negotiating, while 5% refuse to do it all together.
Taylor Blackburn, personal finance specialist at Finder, said that bargaining down the price of a car can be a fast way to save money.
"Buying a car is one of the biggest financial purchases you can make, yet some people visibly squirm at the mention of the word 'haggle'.
"On the other hand, many view it as a challenge.
"Experienced 'hagglers' will tell you it's amazing how fast the asking price can come crashing down if you ask the right questions and are ready to walk away."
The research also revealed that almost one in four Australians (23%) think that the process of buying a car would be easier if they didn't have to haggle at all.
"These are the mortgage brokers of the motoring world, with customers not even having to visit a dealership to do a test drive," he said.
When it comes to which generation is the most savvy, baby boomers come out on top.
Those aged 65+ are much more comfortable with the process than any other generation, with an impressive 44% saying they prefer to negotiate and a further 20% saying they don't mind it.
"Older Australians aren't going to miss out on crucial savings, with many priding themselves on their ability to haggle," Blackburn said.
The survey found that Western Australians are the most likely to negotiate on the cost of a car (38%), while South Australians are the least inclined to haggle (32%).
Men are only slightly more likely than women to talk down the price (36% and 34%, respectively).
Would you prefer to not have to negotiate when buying a car?
|Baby Boomers||Gen X||Gen Y||Gen Z||AVG|
|No, I prefer to negotiate to get a better deal||44%||37%||26%||34%||35%|
|Yes, I am uncomfortable negotiating||14%||26%||33%||32%||26%|
|Yes, it would make the process easier||16%||23%||29%||21%||23%|
|I don't mind either way||20%||9%||8%||10%||12%|
|I never negotiate||7%||5%||5%||3%||5%|
How to save money on new car purchases
- Choose the right time. Plan your purchase, but don't sign on the dotted line until near the end of the month. Many car dealers operate on monthly sales targets and may be more likely to offer discounts and free extras around this time to help meet their targets.
- Make use of the services designed to help you. There are now car buying services such as Georgie and apps like CarDeals2Me that will locate the best offers at local dealerships or haggle on a customer's behalf.
- Compare your loan options. If you plan on using a car loan or another form of finance, it's worth doing your research first. There are a lot of options out there for financing a car purchase, so it pays to understand how they differ and what makes one loan more competitive than another.