Consumers are giving car dealers a run for their money when it comes to successfully negotiating a better deal on a car purchase, according to a recent survey by Experian®, the global information services company.
Recent research by Experian’s CreditExpert.co.uk to find out which situations British adults were most likely to negotiate prices in has revealed that, as a result of the current economic environment, over half the population (57 per cent) are more willing to drive a hard bargain compared to 12 months ago.
Most significantly for the trade, a car purchase is the item that consumers have been most successful with when bartering for a lower price (38 per cent).
Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “The rising costs of living and running a car means that consumers are driving a much harder bargain with dealers. Furthermore, it is no secret that the car market is experiencing challenging times and dealers have been more willing to meet demands in order to secure deals.
“Over the last few years consumers have spent more time on the Internet researching everything about a vehicle before even setting foot in the showroom. Consumers are more geared up than ever before to get a good deal. By the time they enter a dealership, they already know how far they are willing to negotiate.”
The research also found that men are around one and half times more likely to have been able to negotiate a better deal on a car. This is also increasingly the case the older the car buyer. For example, car buyers aged 45 to 54 years old were two and a half times more likely to have secured a better price on a car than those between 18 to 24 years old.
Kirk concluded: “The key message for dealers is that knowing as much about their customers as their customers know about them has become even more vital. Many dealers have already recognised the value of this and are taking steps by maximising the value of the data they hold on their customer databases. Data cleansing is essential to this and enables dealers to identify and target those who are most likely to buy soon.
“Keeping an eye on the market for changing trends is also key to spotting opportunities they can tap into. Knowing what is happening in the market, knowing which customers are likely to upgrade and which ones are downsizing. Which vehicles are increasing in sales compared to those that are losing their appeal? Where is there a greater demand for the cars that dealers are struggling to sell in their own areas?
“Experian’s MarketView OnLine, for example, provides direct access to Experian’s extensive range of automotive market data and analytical tools. Dealers have been able to access information such as new car registration data from the SMMT, the latest DVLA car parc data and used car transactions data, giving a greater insight into what people are buying and where.”