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Haggling increases 73% as buyers demand discounts

A line-up of new cars

Dealers should expect an increase in haggling when they open showroom doors next week as car buyers are demanding discounts on their next car.

In the first three weeks of May, DesperateSeller.co.uk has reported a 73% increase in haggling compared to the same period last year.

Rod Joseph, director of DesperateSeller.co.uk, said: “As thoughts turned to the easing of lockdown we saw a dramatic increase in price reduction requests via email, up 73% year-on-year.

“We’ve also seen a significant upturn in use of our price drop alert feature. The positive news is that thousands of customers are ready to buy at close to the asking price. From the dealers’ side, while they need to hold their line on pricing, they are keen to get back to business and move on ageing stock. With a little bit of haggling there are plenty of great deals to be done.”

New car discounts are expected to be reduced, however, as demand begins to outstrip supply following COVID-19 coronavirus-prompted plant closures by all major manufacturers.

The Chinese market saw a sharp improvement at the end of its lockdown, from a fall of 80% year-on-year in February to a decline of just over 40% in March.

Average daily sales in China doubled from around 20,000 cars in the first week of the month to 40,000 in the third.

Car makers in Europe will still be playing catch-up for some time, as factories must first finish building cars that were started pre-lockdown.

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