The End of Financial Year (EOFY) car sales have become an annual event in Australia that many consumers eagerly anticipate. During this period, car dealerships offer discounted prices, finance deals, and other incentives to attract customers and boost their sales figures before the financial year ends on June 30th. This is a great opportunity for consumers to buy a new car at a lower price and take advantage of the various deals.
But with so many dealerships and offers available during the EOFY period, knowing where to start and how to get the best deal can be overwhelming. That's why we've compiled this guide of 5 tips to help finance professionals and consumers get the best EOFY car deal in Australia.
Tip 1: Do your research
When getting the best End of Financial Year (EOFY) car deal in Australia, doing your research is the first and perhaps most important step. This involves researching car models, prices, and deals before purchasing. Here's why this tip is crucial and how to conduct research effectively:
Importance of researching
Researching car models, prices, and deals can help you secure the best possible deal and save you money. Here are the other important of research:
Enables you to make an informed decision
Researching car models and prices lets you identify the car that best suits your needs and budget. It also enables you to avoid overpaying for a car.
Helps you negotiate
Knowing the market value of a car and the discounts available during the EOFY period gives you an advantage when negotiating with dealerships. Dealerships are less likely to offer a higher price if they know that you've done your research and know the car's value.
Helps you compare deals
Different dealerships offer different deals during the EOFY period. Researching multiple dealerships and comparing prices and deals can help you find the best offer.
How to conduct research effectively
Use online resources
There are several online resources available that can help you research car models and prices. Websites such as car sales, CarsGuide, and Redbook offer information on prices, reviews, and specifications of different car models. These websites also provide information on EOFY deals available at different dealerships.
Talk to dealerships
Visiting dealerships and talking to sales representatives is another way to gather information on car models and prices. Dealerships are usually happy to provide information and answer questions.
Once you have identified the car model that best suits your needs and budget, compare prices across different dealerships. This will help you find the best deal available during the EOFY period.
Tip 2: Time your purchase
Timing your car purchase during the End of Financial Year (EOFY) period can help you save money and get the best possible deal. Here's why timing is important and tips on when to buy during the EOFY period:
Importance of timing
During the EOFY period, dealerships are eager to meet their sales targets before the end of the financial year. As a result, they may offer bigger discounts and incentives to attract customers and increase sales.
End of financial year tax benefits
For businesses, buying a car before the end of the financial year can offer tax benefits, such as depreciation and instant asset write-off. This can also increase demand during the EOFY period and potentially more deals.
When to buy
- End of June: Towards the end of June, dealerships may offer their biggest discounts and incentives as they aim to meet their sales targets before the financial year ends. This can be a good time to negotiate with dealerships and secure a good deal.
- Early July: While not technically during the EOFY period, early July can still offer good deals as dealerships look to clear out old stock to make room for new models.
It's important to remember that buying a car at the end of June or early July may mean that you have limited choices in car models and specifications. However, if you have flexibility regarding the car you're looking for, timing your purchase during the EOFY period can offer significant savings.
Tip 3: Negotiate effectively
Negotiating effectively is crucial to buying a car, especially during the End of Financial Year (EOFY) period when dealerships may be more willing to negotiate to meet sales targets. Here's why negotiating is important and tips on how to negotiate effectively:
- Save money: Negotiating can help you save money by getting a better deal on the car you want to buy. This is especially important during the EOFY period when dealerships may offer bigger discounts and incentives.
- Get additional extras: Negotiating can also help you get additional extras included in the deal, such as free servicing, extended warranty, or accessories.
Tips on how to negotiate effectively
- Know your budget: Before negotiating, determine and stick to your budget. This can help you avoid overspending and give you leverage when negotiating.
- Be confident: Show confidence when negotiating, and be prepared to walk away if the deal is not right.
- Research the car's value: Knowing the market value of the car you're interested in can help you negotiate effectively. Compare prices of similar models at different dealerships to determine a fair price.
- Know the value of your trade-in: If you have a car to trade in, research its value beforehand. This can help you negotiate a fair trade-in price or consider selling it privately instead.
- Consider financing options: Dealerships may offer financing options, but it's important to compare them with other options available. Knowing your options can give you leverage when negotiating.
Tip 4: Look for finance deals
Looking for finance deals can be a smart way to save money when buying a car during the End of the Financial Year (EOFY) period. Here's why looking for finance deals is important and tips on what to look for:
- Lower interest rates: Finance deals offer lower interest rates than traditional car loans, which can help you save money in the long run.
- Flexible repayment options: Finance deals may also offer flexible repayment options, such as balloon payments or longer loan terms, making it easier to afford a more expensive car.
Tips on what to look for in a finance deal
- Low interest rates: Look for finance deals with low-interest rates, as this can help you save money over the life of the loan. Compare interest rates offered by different lenders and dealerships to find the best deal.
- Flexible repayment options: Consider finance deals with flexible repayment options, such as balloon payments or longer loan terms. These options can help you afford a more expensive car or make repayments more manageable.
- Hidden fees: Be aware of any hidden fees associated with the finance deal, such as establishment or early repayment fees. These fees can add up and increase the overall cost of the loan.
- Early repayment options: Look for finance deals that offer early repayment options. This can help you save money on interest by paying off the loan early without incurring any fees.
It's important to read the terms and conditions of any finance deal carefully before signing up. Compare different finance deals and consider seeking advice from a financial advisor or accountant to ensure you're getting the best deal for your situation.
Tip 5: Consider add-ons carefully
When buying a car during the End of Financial Year (EOFY) period, dealerships may offer a range of add-ons to enhance your driving experience. While add-ons can be tempting, it's important to consider them carefully to avoid unnecessarily increasing the cost of your car purchase. Here's why considering add-ons carefully is important and tips on how to do it:
- Increased cost: Add-ons can increase the cost of your car purchase significantly. It's important to assess whether the cost of the add-ons is worth it in the long run.
- Value for money: Some add-ons may need to provide better value or may not be necessary for your driving needs. Consider whether you need the add-on before making a purchase.
Tips on how to consider add-ons carefully
- Assess whether they're necessary: Before purchasing an add-on, assess whether it's necessary for your driving needs. For example, do you need a premium sound system or a sunroof?
- Research prices beforehand: Research the prices of add-ons beforehand to ensure you don’t get overcharged. Compare prices at different dealerships to find the best deal.
- Negotiate on the price: If you decide to purchase an add-on, negotiate to ensure that you're getting a fair deal.
- Be aware of the total cost: Remember the total cost of the add-ons when making a decision. It's easy to get carried away with add-ons and spend more than you intended.
In conclusion, buying a car during the End of the Financial Year (EOFY) period can be a great way to save money. By following these five tips, you can ensure you get the best possible deal.
Considering your financing options is important if you're in the market for a new car during the End of the Financial Year (EOFY) period. One financing option to consider is Driva. Driva's online platform provides all the information you need upfront, including interest rates, fees, and repayment options, giving you 100% transparency.