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By bargaining on the cost of a new vehicle, borrowers may be able to use funds from their motor loan more effectively, it has been revealed.

According to Sainsbury’s Bank, those who haggle when buying a new car could save more than £1,500, a figure which could help with personal loan repayments.

However, the study revealed that between March and August, about 386,000 consumers will avoid haggling and as a result could be losing out on up to £611.81 million.

Loans manager Steven Baillie said: "Once you have decided which new car you want, you then need to be prepared to haggle over the price you pay and if you are financing the purchase with a loan, you also need to make sure that you shop around to find the right option for you."

Mr Baillie also advised that as 16 per cent of new car purchases as set to be financed via a loan "it’s worth shopping around for a competitive rate".

Last month, a study by Alliance & Leicester revealed that opting for showroom finance deals ahead of a competitive personal loan could see borrowers waste an average of £3,000 on the cost of a new car.

Interfinancial providing you with breaking motor loan news.