Motorists could save hundreds of pounds when buying a new motor by haggling, a new report reveals.

A study from Sainsbury's Bank shows that the average car buyer could save £1,500 by bartering with vendors on the showroom floor. Its research shows that close to half a million people planning on buying a new car in the next few months will not haggle over price - thus losing out on around £675.21 million.

And a further 549,000 could end up losing yet more money, admitting that they would only be prepared to barter slightly when trying to lower the price of their new motor.

"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," Steven Baillie, head of Sainsbury's Loans said

"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."