The jingles are back, the billboards are up and the car dealers are well under way moving stock out the door for the EOFY sales. It seems like this time of year is a broken record on repeat with the same 0% Car Finance offers* (BEWARE!) and promises from dealership managers to do whatever it takes to clear the cars from the yard.
Fortunately for you, that cracked LP sings great news for buyers, but is it all as good as it seems?
eo(FYI) #1 – Don’t miss out on private sale savings by restricting yourself to dealer sales
With competition in the car sales industry at its peak, let’s not beat around the bush; deals are to be had.
The lure of that new car smell and the shine of a brand new car will surely entice many a buyer into financing a brand new car but before you go rushing off to the dealership, consider that private sellers (just like myself) are doing everything we can to stand out from the noise of radio and tv ads to get our cars out of the garage and S O L D. A quick peek over at Gumtree Cars shows that the private sales market is hot with bargains to be plucked during the 2016 EOFY period.
eo(FYI) #2 – If you do decide to purchase from a dealer, consider separating the finance application from the purchase
As we have always said, the vehicle price shouldn’t be dependent on whether or not you choose to finance through the dealership. Having control over both the sale price and the rate and repayment mean that whatever amount is slashed from the price can quickly be made up by jacking up the rate and repayment. By separating the finance from your purchase, you have the ability to save on both aspects and that is where a broker comes in very handy.
Let’s look at all sides of the story.
The Private Seller (that’s me!)
I am speaking from firsthand and current experience here, selling a car privately is near impossible at this time of year.
Here is my current predicament;
- My car is a Toyota Corolla Levin ZR – Top of the range…
- Toyota’s are renowned for having great resale value and being top of the line provides a bit more excitement and features than the run of the mill Ascent. It should sell like a hotcake right?
- Low KM’s 69,500kms – The car has done 18,000kms less than the average and isn’t due for a service for another 7000kms.
- Only $13,500 – Priced lower than comparable listings and at the mid-range of the estimate for private sales. I set this at mid-range because of the low km’s.
- On top of all of this, it has near new Bridgestone tyres, Thule roof racks, and factory upgraded 17inch rims.
To get an idea of how competitive the market is, over the past 3 weeks I have had 197 views and ZERO interest on my car. This just goes to show that the private sale market is ripe with bargains and how the negotiating power is definitely in the hands of the buyer (you). Speaking of which, if by chance you are looking to finance a 2010 Corolla Levin ZR for approximately $58.00/week*, please click here to leave a finance enquiry. Our expert finance officers will be in touch.
The Buyer (that’s you)
With the heightened industry competition, it is no wonder that June is the perfect time to purchase your next vehicle. Not only can you save big dollars on the purchase price and walk away with extras and included warranties, if you are a sole trader or a business owner, you may also be able to claim tax deductions on purchases under $20,000 for your business. Talk to your accountant and see how you can save on your tax return for the 2015/2016 financial year.
Buyer tips for EOFY;
- For private sale purchases, don’t be ashamed or afraid to throw a low offer and see if it sticks as there is a lot of desperation around at this time of year
- You have the upper hand at this time of year so get your confidence boots on before shopping around
- Don’t be afraid to ask for more and more extras as if thou never ask, thou never receive
- Whilst putting down your deposit, always sign “Subject to finance” and give the team at 360 Finance a call on 1300 361 360 to arrange a low rate car finance deal that is separate from the purchase price of the car (This way you control both the finance and the purchase price)
Dealers have stock and lots of it! Their number 1 goal is to get as much of this stock cleared out before the financial year ends so that both the sales targets are met and stocktake workload at June 30 is reduced to a minimum.
Generating urgency by advertising an end date (EOFY) and by building excitement through offers of low rate finance and purchase price reductions has worked as a marketing tactic year on year for as long as I can remember so keep your eye out for the following and you will be in good shape to buy.
- If a dealership says that the purchase price of the car is subject to you taking out car finance through the dealership, please let them know that this is NOT the case and that it is FALSE INFORMATION. In this case, mention that you already have finance organised and negotiate a purchase price based on this premise
- If a deal seems too good to be true, check and recheck all conditions and don’t let yourself be rushed into the sale
- At this time of year, all dealership sales should include on road costs as competition is at its peak. Be sure to check this as excluding on roads could be a trick to make the purchase seem like a better deal
Taking a look at EOFYS from all angles gives us an insight into how hype through advertising, a strict deadline and excess stock both at the dealership and for private sales creates a competitive market that is ideally suited to you, the consumer.
Whether you are looking to buy privately or purchase from a dealership, remember that you are in control. There is no need to package your dealership purchase with dealership finance nor do you need to be tied down to a dealership “bargain” at all.
For tips and tricks to buying your next car, move your mouse to the top of this window and sign up for our comprehensive guide to buying a car privately.