Haggling still has place in car sales, says NFDA

Sue Robinson, the Director of the National Franchised Dealers Association (NFDA), believes that there is still plenty of room for “dealers in the showroom”.

Robinson’s comments come in the wake of Auto Trader’s most recent market review, which said there had been a 12 per cent increase in car buyers paying the asking price or higher for a new or used vehicle in 2015.

5,000 UK motorists were surveyed for Auto Trader’s report, with 56 per cent of them saying they had paid the asking price or even more when they were tempted by add-ons and other options.

The report also highlighted the British public’s reluctance to haggle, with 34 per cent of those surveyed comparing the process of haggling with the embarrassment of asking for a pay rise from an employer or complaining about a poor meal in a restaurant.

Robinson added: “Dealers are becoming increasingly competitive with pricing, and understand that prices are now more transparent and easily comparable within the entire online UK car market.

“We believe that whilst there is still a need for dealers and face to face communication in the showroom, it is vital that dealers simplify the negotiation process by offering more price comparison tools online — an initiative which has already been adopted by many of our members. In addition, consumers will want to physically see the product they intend to buy.”

Of course, it’s vitally important that you keep your prices competitive in order to attract customers, but it’s also important to offer fantastic customer service and a decent test drive. Be sure that you have the right level of road risks insurance for test drives, in addition to your motor trade insurance.