Collectively British motorists could save themselves an incredible GBP 396.36 million, if only they were prepared to haggle on the price of their new car, according to research from Sainsbury's Finance.

Of the 1.45 million people planning to buy a brand new car between September and February 2009 some 270,000 (19%) say they do not plan to haggle at all over the price. This is despite the fact that they could on average save an estimated ￡1,468.

In addition, the bank's research highlighted that a further 280,000 people could also pay too much for their brand new cars because they are only prepared to haggle ‘slightly' over the price. Only 60% of those people buying a brand new car said that they would haggle more aggressively - ‘very hard' or ‘hard'.

However, given the current economic climate, the findings show that over the next six months, there is a marked increase in the number of people who intend to haggle more assertively over the price they pay for a brand new car (36%) when compared with the pervious six-month period of March 2008 to August 2008 (29%). However in contrast to this, the number of people who won't haggle at all has increased from 10% to 19% over this period.

Steven Baillie, Head of Sainsbury's Loans said: 'In the current economic climate and the fact that fewer people are looking to buy new cars, this is one of the best times to haggle over the price you pay.'

Sainsbury's Finance offers the following advice to people on how best to haggle over the price you pay for a new car.

You can often pick up a good price on a new car just before the introduction of new registration plates as any cars left over from the previous new registration become less attractive

When manufacturers are introducing a new model, you can sometimes pick up a great deal on the old model

Car dealers looking for a quick sale will sometimes throw in additional features that are not included as standard (e.g. better car stereos; sunroofs etc)

Be aware of the discounts you can obtain on the car you want. Having knowledge of these can be very useful when negotiating on price. The What Car? Target Price will show you the average price that you can expect to pay for a car, which on average is currently around ￡1,468 below the list price (April 2008)

Know what car you want and the size of your budget and stick to it

Keep your excitement in check. If you look too keen the car dealer may be less willing to negotiate on price. Make them think that you are prepared to walk away.

In addition to offering consistently attractive rates, customers taking out a Sainsbury's Loan can choose to make no repayments for the first three months, receive an instant decision and have their cheque delivered to their door within 24 hours.

There is also Sainsbury's Drive, which is an innovative way of enabling you to drive the car you've always wanted. It's just like renting a brand new car but with fixed rental payments over a period of time that suits you. At the end of the contract you can simply hand the car back and walk away or take out another contract.