Be clued up on your motor

With the new '57' registration number plate out in just a few weeks time, research by esure motor insurance reveals that motorists looking to buy a new car aren't doing their homework before stepping on the forecourt, which could cost them dear: potentially an unaffordable insurance premium, an uncompetitive sales price, and an unsuitable finance deal.

One in three Brits 35% admit that before signing on the dotted line to buy a new car they wouldn't think about getting an insurance quote to see how much it would cost per year, or to see if they were insurable.

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Furthermore, 43% wouldn't do their research to find out the car's insurance group - a factor that can have a significant affect on insurance premiums.

The research also confirmed that we're not a nation of hagglers. Indeed, 11% of Britis believe the advertised price tag on a new car is firmly set and can't be changed or negotiated down in any way. And women are less likely than men to barter with salesmen - 79% of men would haggle with a car salesman whilst only 72% of women would consider bargaining to secure a lower sales price.

Meanwhile, thinking about finances is way down the list of motorists' priorities. Whereas 19% of Brits would undertake thorough research - spending over 20 hours flicking through car magazines and viewing cars before choosing a car make and model, 26% would spend less than an hour, if any time at all, researching how to actually pay for their new car. And that means they could be losing out on considerable savings or signing up for a finance deal that doesn't suit them.

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Brits are also baffled by finance jargon when it comes to funding the purchase of a new motor. One in 20 5% people surveyed actually thought that the term hire purchase referred to a holiday car rental and 6% just didn't have a clue.

Drivers looking to buy a new car should shop around for insurance quotes before signing on the dotted line, as well as contacting their current insurer to see by how much their current premium will be affected to ensure that it's affordable.

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

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2007-08-17 10:34:14 © Moneyextra.com