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Sainsbury's Bank Loans UK has found that UK drivers could potentially save around £1,500 from haggling while purchasing a new car.

However, research carried out by the financial provider also revealed that some 426,000 people who are planning to buy a car between September 2007 and February 2008 will not haggle.

Steven Baillie, head of Sainsbury's Loans, commented: "Our latest research reveals that the number of people looking to buy a brand new car is up on the same period six months ago.

"We would advise people to make sure they secure the best possible deal by being prepared to haggle over the price of their new vehicle."

He added that shopping around for a car loan is also recommended to find the right deal.

Sainsbury's Bank offers car loans which start from 6.5 per cent APR, which it claims are "among the most competitive available".

Last month, Sainsbury's Bank warned that travelling without insurance is a growing problem in the UK.

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