BRITAIN'S car buyers could save £3billion per year simply by haggling, What Car? and Sainsbury's Bank can reveal.

Together, the two companies produce the Target Price, an achievable discount for every model on sale.

If every new car over the past 12 months had been bought at the Target Price, British consumers would be better off to the tune of £3billion - an average saving of £1,200 for every car sold.

There's more good news for car buyers, too: discounts are going up. While over the last 12 months the average saving has been £1,200, the typical discount the previous year was just £997. “These findings show that dealers are prepared to negotiate big savings on new cars,” said What Car?'s editor, Rob Aherne. “By checking the Target Price before heading for the showroom, buyers know exactly how much discount to expect.”

Steven Baillie, loans manager, Sainsbury's Bank said: “Motorists shouldn't have to pay over the odds for a new car and Target Price ensures that they don't.

“But our research shows that many motorists will throw away their savings by failing to research how to best finance the purchase. It can cost you thousands of pounds if you don't shop around for a competitive loan, finance deal or insurance.”

Sainsbury's Bank has data to show that in the first six months of this year, motorists took out up to £11.68 billion worth of loans to buy cars. But it warns that many will be paying thousands of pounds in excess interest payments and in insurance premiums.