Haggling pays off

Bargain hunters are having success when asking for a better deal. Sophie Elsworth explains how you can save

CONSUMERS are more likely to haggle on whitegoods than financial products, meaning many may miss out on savings.

Three in four of those who do haggle claim some success, but many are uncomfortable asking for a better deal or don’t know how.

Big bank Westpac last week announced a variable rate hike, so it’s critical customers take action to secure a better deal.

Financial comparison website Mozo surveyed more than 3600 Australians and asked if they demanded a discount on products like their mortgage, utilities, car and home insurance and whitegoods. The ones who sought discounts saved a total of $1600 a year.

Mozo spokeswoman Kirsty Lamont urged consumers to be confident when asking for a discount, and suggested trying it when your next bill arrives.

“When it comes to insurance, don’t just let it roll over – always make sure you check the rate your insurer is quoting and compare,” she said.

“Give them a call and see if they can do better than the premium they have quoted.”

For consumers who sought a discount, success was best achieved when buying whitegoods, followed by car insurance and energy bills.

Rising Tide Financial Services’ managing director, Chris Browne, said it’s important to be firm but not rude when trying to score savings. “If you are trying to get a better deal with your existing bank, make sure you do your homework,” he said.

“Know what their competitors are offering and be prepared to leave if they don’t beat it.”

Consumers should be aware that service providers reserve the best deals for the savviest customers, so don’t hold back.

Ms Lamont said regularly asking for a cheaper offer was the key to making sure you were always on a competitive deal.

“When it comes to your home loan, you should be trying to negotiate a better deal at least every couple of years,’’ she said.

“This is particularly the case if you get a rate rise. You don’t just have to take it.”

Banks are continuing to slowly push up interest rates on many owner-occupier and investor deals.

It’s critical that customers on a variable rate pay attention if that rate has quietly crept up.

Insurers are known for slugging existing policyholders while giving new customers the best deals, so it’s vital not to automatically renew any policy before shopping around.