BAG A BARGAIN
Four ways to haggle & save on bills with our expert’s guide to the art of bargaining
Haggling is generally for when you want a better deal with a company of which you are already a customer
MAKING big savings on your bills can be quick and easy if you know how to haggle.
Consumer expert Martyn James says: “Time it right, do your research and you could save £100 on car insurance alone.
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“Knowing which companies are likely to give you discounts will stop you wasting your time on those which are unlikely to budge.”
According to recent research by moneysavingexpert.com, Virgin Media, the AA and the RAC are companies most likely to give big reductions.
So, if you’re already a customer, make sure your loyalty pays by asking for a discount.
If you say you will leave, you may unlock an unadvertised offer. Here, we show how to haggle for a better deal.
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WHO TO HAGGLE WITH
HAGGLING is generally for when you want a better deal with a company of which you are already a customer.
“Customers are in a great position to get a major discount if they negotiate,” says James.
It is possible to save on smaller bills too. Try to get a discount when you renew subscriptions.
You can haggle with high street stores, but you may need to call in a manager or approach head office.
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The average person on a cash desk won’t negotiate a big discount,” James says.
I made £600 in 20 minutes cashing in on 'credit' from my insurance & energy companies - I didn't have to haggle either
TIME IT RIGHT
INSTEAD of letting a policy auto-renew, speak to the company three to four weeks before your new contract begins, James says.
“A few weeks’ notice gives a company time to respond with a better offer and you enough time to work out if it’s a good deal.”
Apply the rule to other big bills too, such as broadband, mobile phone and car-breakdown cover.
But it’s not too late to get a better deal even after your new contract begins.
When you buy most goods and services online, you get a 14-day cancellation window where you can reject a new contract, ask the company to come back to you with a better offer or switch to someone else.
HOW TO HAGGLE
BEFORE you start trying to get money off, arm yourself with the facts.
Use a comparison site to look at deals, studying everything that’s offered so you are comparing like for like.
For items, compare prices on a site like Idealo or Pricerunner (or Camel Camel Camel for Amazon) to find the best price.
Note down how much you think you should be paying and why you think you have a case for a better deal, then contact the company by phone, web chat or email. And, of course, be polite.
James says: “People will respond more positively to a friendly and respectful request.
“Pointing out your customer loyalty never does any harm, either.”
If you don’t get the price you want, you can ultimately threaten to vote with your feet.
Doing so may open the door to the customer retention department, who are likely to have the power to offer the best deals to persuade you to stay.
QUICK WINS
MAX out your savings with these extra negotiating tips.
Use “new customer” deals from cashback sites as another bargaining chip.
Sign up to newsletters and loyalty schemes to find out first about sales and discounts.
When you pay in person, ask for coupons for money off in future or whether they can add any extras for free.
If you find an expired discount code, ask if they have any current ones instead.
They might offer something to stop you walking away.
Don’t suck up late-payment charges or fines.
If you accidentally miss a payment, just ask for the charge to be cancelled.
‘I’ve no loyalty to insurers, I’m ready to walk’
SANJAY AGGARWAL, from Cheshire, negotiates on everything from car insurance to holidays.
He says: “Saving money is important, but it’s also a matter of principle – and there’s a lot of satisfaction in getting a better price.”
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Sanjay, 41, who is co-founder of spice retailer Spice Kitchen, saved around £100 a year on van insurance with Admiral after using a comparison site to find a better deal.
He explains: “I went back to Admiral and they lowered the price, so I renewed.
“I don’t have any loyalty for insurance companies any more and am always willing to walk away.”
RUBBISH U-TURN FALLS FLAT
MILLIONS of people are still being turned away from local rubbish dumps despite a major rule change that was introduced last year to encourage responsible disposal.
In January 2024, the Conservative government abolished fees for disposing of small-scale DIY waste at council recycling centres.
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Before this change, around a third of councils charged households looking to dump this waste at their local disposal point.
Yet more than six million people were turned away from their tip last year and some councils still refuse to accept certain DIY materials, according to research.
For example, Lewisham Council, in East London, refuses to accept what many people would regard as DIY waste, such as rubble, kitchen or bathroom units, soil, plasterboard and worktops. Other councils have imposed strict limits and charge for any excess.
Sarah Khan, head of Churchill Home Insurance, which carried out the study, said: “This research reveals that what many householders regard as DIY waste and are trying to dispose of at local recycling centres is not permitted or incurs significant additional charges.”
If you have large items to dispose of that the council won’t accept, you can hire a skip, usually for around £125 to £320 per week, Checkatrade says.
JAMES FLANDERS
BUYERS’ BARCLAYS BOOST
BARCLAYS Bank has launched a new mortgage product to help both first-time buyers and existing homeowners to borrow more.
Its new “mortgage boost” will let buyers add another person to their application to increase the amount they can borrow.
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Anyone on the application will be responsible for the mortgage, but the extra name won’t need to own the property or be named on the deeds.
The mortgage boost will have a five-year fixed interest rate of 5.52 per cent for a 95 per cent loan-to-value deal, or 5.76 per cent at 100 per cent loan-to-value, up to £500,000 maximum.
Last year the average age of first-time buyers rose to almost 34, according to Barclays’ own data, as people delay buying their own homes amid rising prices and mortgage costs.
Nicholas Mendes, of mortgage broker John Charcol, said: “One of the main advantages of this scheme is that it lets borrowers increase their borrowing capacity by including another person’s income, which can be useful for first-time buyers struggling to meet affordability criteria on their own.”
In an example given by Barclays, someone earning £37,500 a year and a deposit of £30,000 could typically borrow £168,375, allowing them to buy a home worth up to £198,375.
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But with the mortgage boost, if they added another person with an income of £37,500 a year, they could borrow up to £270,000.
LAURA PURKESS
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