Car buyers too stressed to drive a hard bargain
According to a poll conducted by PCP, of 2,000 motorists who have ever purchased one, buying a car is regarded as more or just as stressful as being stuck in a lift (37 per cent), going to the dentist (54 per cent) or even planning a wedding (36 per cent)
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Your support makes all the difference.Drivers would rather be stuck in a lift than visit a car dealership, according to research conducted by Confused.com, a price comparison website. A series of studies on volunteer guinea pigs subjected to a mock encounter with a car salesperson revealed remarkably high stress levels – and so anxious are potential buyers to end the experience that they often pay over the odds for their cars or the finance on them. This may account for a recent finding by the Financial Conduct Authority (FCA) that car buyers are being overcharged by more than £1,000 when they take out a loan to buy a car. The FCA said the industry practice of allowing dealers to set their own interest rates was costing consumers £300m a year.
In a trial, 31 participants agreed to take part in an indicative experiment testing their stress levels against various stimuli (compared to recommended stress levels from a control sample) including buying a car from a dealership, watching their favourite team play a live game of football and doing an important presentation at work. Their cortisol levels (the stress hormone) were monitored. On average those visiting the car dealership saw stress levels of 215 per cent of the recommended level; those watching the football game saw average levels at 212 per cent; and those making the presentation saw average levels at 243 per cent.
The stress persisted throughout the day, with those tested seeing their cortisol levels increase to even higher levels by the end of the day, possibly showing the post-purchase anxiety coming into play as buyers worry about the deal they secured.
In interviews, the guinea pigs additionally reported feeling nervous, sweating, hyperventilating and a lack of concentration during their visit to the car dealership. According to a poll conducted by PCP, of 2,000 motorists who have ever purchased one, buying a car is regarded as more or just as stressful as being stuck in a lift (37 per cent), going to the dentist (54 per cent) or even planning a wedding (36 per cent).
According to PCP there are 38.2 million licence holders in the UK. Of these, 31.3 per cent say they have taken out a car finance deal on their current car, totalling 11.9 million. Almost one in seven (13.8 per cent) of respondents say they didn’t negotiate very hard because they found it overwhelming and intimidating, equivalent to 1.6 million drivers. One in four buyers, according to the poll, accept a finance deal on the spot, and nearly one in five (18 per cent) now also admit they do not fully understand the deal they got.
Amanda Stretton, motoring editor at Confused.com, commented: “The thought of having to walk into a car dealership and negotiate is enough to put the most experienced haggler on pins. Many of us let confusing jargon and our nerves get the better of us, meaning we walk away with a bad deal.
“The key is preparation. Getting your finance secured beforehand by comparing plans online can put you in a better position when it comes to negotiating. More competitive finance deals could be available online, with savings of up to £1,167 to be made at Confused.com. And being clear on your haggling tactics can also boost your confidence.”
Confused.com suggest these negotiating tips and the car finance jargon buster
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