New Figures Reveal the Savings Motorists Could be Missing Out on

Everyone is aware of the high cost of buying and running a car even if they do not know the specific prices. It is such knowledge that puts some people off owning one and encourages others to avoid brand new vehicles altogether and instead focus their attention on buying a second hand car.

With this in mind, Sainsbury’s Finance, continuing to dish out advice to motorists in the United Kingdom, has revealed the results of a study carried out on their behalf by TNS. The results show that motorists may have paid as much as £230 million extra for cars between July and August 2009, simply because they failed to haggle on the price.

The study also asked people whether they planned to haggle on the price of a brand new car between March and August 2009 and between September 2009 and February 2010. It found that the amount of people planning to haggle dropped between the two periods, with those planning to ‘haggle very hard’ dropping from 44% of motorists to 36% of motorists, whilst those who planned to ‘haggle hard’ dropped from 23% to 16%.

However, the amount of people planning to ‘haggle slightly’ went up from one period to the next, from 23% of people between March and August to 37% between September and February. It implies a level of uncertainty with motorists who are perhaps unaware of how much they could save by challenging the price, which in some cases could amount to a discount of up to 50% according to Broadspeed.com in 2008.
Motorists are also encouraged to shop around and find the best deal on a new car before buying. By carrying out such tasks at every level, particularly with motor insurance as well, motorists could save a lot more than they are already.

“Our research suggests that with stereotypical British reserve, many of us don’t haggle hard despite the big savings that can be made, so we’d urge car buyers to give it a go,” said Steven Baillie from Sainsbury’s Finance. “As well as obtaining a good deal on a new car, it’s also important to shop around for a competitive rate if you are planning to use a loan to help finance your purchase.”

Different Sources Cite Difference Changes

The RAC, in a new press release, has announced that the cost of motoring for British drivers has fallen by 5% in 2009, with an average reduction of £123. However, according to Sainsbury’s Finance, this is not so.

According to Sainsbury’s Car Insurance, the average annual cost of running a car has increased by 2.68% when compared to the year before, with the figures rising to 11% when compared to 2007.

The leading insurance provider says that the most noticeable cost increase has arisen due to car insurance. This is an area that the RAC and Sainsbury’s can at least agree on, with the RAC seeing an average rise of £385 in 2008 to £409 in 2009. This compares to figures from Sainsbury’s which estimates the average annual cost of car insurance per motorist has risen from £488.48 in 2008 to £551.74 in 2009. The Sainsbury’s figures amount to an increase of 13% compared to 2008 and when compared to 2007, it demonstrates an increase of 23%.

Whatever the situation, the RAC cites various changes in the habits of those running cars in their day to day lives, such as the return to the one car family and downsizing the size of the vehicle (with the RAC citing more women doing this than men).

 2009 did see a decrease in fuel costs despite rises and falls all year round and the RAC cites figures that claim a fall of 10% in the last 12 months, a fall to £1,184 for the motorist per year, whilst diesel has fallen by 14%.

Sainsbury’s Finance comments on their figures, with Ben Tyte saying “While certain costs of running a car have fallen during the past year, compared to 2007, the cost of motoring has still increased fairly significantly with road taxes and insurance premiums both on the rise. The cost of driving a car can be kept better in check by shopping around, particularly for car insurance and servicing.”

The RAC, whilst clearly disagreeing over the news that the costs have risen, points to motorists still feeling financial pressure and acting accordingly, with Adrian Tink pointing out: “We’re seeing motorists really question how they use their cars. The trend towards the one car family shows how people are prepared to make fundemental lifestyle changes for the benefit of themselves, their families and their pockets.”

Sources: RAC Press Release and Sainsbury’s Finance Press Release Nov 2009

3.7 million Plan to Buy a Second Hand Car Before February 2010

It is common for people to purchase second hand cars, with people hoping to save money on vehicles by avoiding brand new motors, whilst other road users hope to sell on their car and pay towards a new one.

Sainsbury’s Finance is indicating that in the six months leading up to the end of February 2010, around 3.7 million people plan to buy a second hand car, with the average price amounting o £5,323.

As a result, the car insurance company is urging motorists to be aware of their car’s value, particularly if they are planning on selling it on.

The findings come from research carried out by TNS on behalf of Sainsbury’s Finance, which showed that the figure of 3.7 million people is down from 4.5 million people who planned to buy second hand cars in the previous six month period. The findings were split down into different UK regions, which demonstrated that more people in Scotland were planning on purchasing a second hand vehicle, with 15% of the adult population making plans during the six month period, a total of 633,000.

The North West of England showed the lowest percentage of the adult population planning on buying a second hand car, with 3% of the adult population (179,000) making such plans. However, this is actually more people than the North East, where only 93,000 were planning to buy a second hand motor, accounting for 4% of the population.

“Our research suggests that less people intend to buy a second-hand car in the coming months,” says Steven Baillie, Head of Loans for Sainsbury’s “which may be partly due to the Government’s car scrappage scheme encouraging more people to buy a new car instead.

“Indeed, we estimate that the scrappage scheme is directly responsible for a 37% increase in the value of personal loans taken out to purchase cars since its introduction [based on personal loans data].

He encourages people to do their homework when it comes to buying a car and this applies to both buyers and sellers, “Sellers should for example ensure they understand the car’s value in relation to the market so that they get the best deal – valuation calculators can be found online.

“Buyers should remember to haggle, which can save them hundreds or even thousands of pounds, and if they are financing their purchase through a loan, they should shop around for the best loan rate available as well.”

Source: Sainsbury’s Finance Press Release

Sainsbury’s Finance Highlights 3.8 million Missing Cats and Dogs Over 5 Years

Continuing to highlight problems facing pet owners in the UK, Sainsbury’s Finance has highlighted the rising numbers of missing pet dogs and cats across the British Isles, whilst encouraging pet owners to take out a to cover associated costs.

With the large number of missing animals over the last 5 years amounting to 3.8 million, Sainsbury’s Finance points out, in their study, that of all those who have owned a cat during this period,12% have experienced them going missing at some point, with 4% of dog owners suffering a similar fate.

Of these, a little over half of animals reported missing during this period were returned alive, with 32% claiming that the pet was never seen again and 14% reporting that they turned up deceased.

Of the remaining 45% of pet owners whose pets were returned alive, there were various circumstances that accounted for this, with some saying their cat or dog returned on its own, some saying they found them and a further percentage claiming that a third party returned their beloved animal to them.

Many people seem not to realise how far reaching pet insurance policies are in these situations. Whilst most people are aware that veterinary costs can be covered by such policies, as well as other factors, it should also be highlighted that some pet insurance policies cover the costs associated with missing animals. In most cases this amounts to advertising costs in the search effort and compensation for pets unreturned.

However Lucy Hunter, Sainsbury’s Finance Pet Insurance Manager points out that “not all pet insurance polices recognise the importance of providing support in the form of advertising or reward benefits to owners who have lost their pet”.

This highlights the need to shop around for a pet insurance policy that suits the areas the individual thinks are necessary.

It also highlights various methods that pet owners can undertake to ensure their pet is safe, with Sainsbury’s Finance recommending micro-chipping pets, ensuring they wear a collar or ID, securing property boundaries, supervising animals, using a dog walker and varying routes on walks.

With these steps, we could one day see the figures for lost or stolen animals declining.

Source: Sainsbury’s Finance Press Release May 2009