Buying a car
End of financial year (EOFY) car sales 2019: Tips for buying
14 June 2019
If you’re in the market for a new car (or you’re thinking about upgrading your constantly-breaking-down current ride), EOFY 2019 could be exactly what you need. Most dealers drastically slash their prices in the lead up to June 30, but there’s more to it than simply putting on a big sale.
Why is EOFY the best time to buy a car?
You may have already heard that you should put the squeeze on dealerships at the end of the month. That’s because car salespeople usually have monthly quotas they need to meet. If they haven’t gotten over the line and they’re running out of time, they may be more likely to cut you a good deal.
When it comes to the EOFY, the pressure is on triple fold. There are several reasons for this:
- Competition. If you look around, you’ll see that pretty much all dealers are being generous with the price-slashing. No dealer wants to be the odd one out.
- One for the books. Dealers want to be able to boost their account books ahead of tax time. EOFY is the last opportunity to do that.
- Massive bonuses and incentives. During the EOFY rush, factories usually offer dealers bonuses to sell cars they’re having trouble getting off the shelves. It might be an unpopular colour, or perhaps people are leaning more towards the hatchback over the sedan. These bonuses are a great incentive for dealerships and their staff to close those deals.
Car buying tips to get a good deal in the 2019 EOFY car sales
Knowing that prime car-buying time is coming up, how can you capitalise on it and bag yourself a bargain? We’re glad you asked!
Heading into the 2019 EOFY car sales, there are a few things you can keep in mind.
Timing is key
You can probably take advantage of sales at any time from now until June 30, but the closer you get to the end of the financial year, the better. That pressure to ‘sell, sell, sell’ will only build with time, as unfulfilled quotas loom over salespeople’s heads.
It’s also possible that weekdays will be better for heading along to the dealership. This is mainly because salespeople usually have more time to spend on assisting you and – most importantly – crafting a sweet deal for you.
However, that doesn’t mean you still can’t score a bargain on Saturday or Sunday. Most car salespeople go into the weekend with a lot of energy and optimism, preparing themselves to make some good sales. Plus, June 30 lands on a Sunday this year, so you know it’s going to be a big day for sellers and buyers.
Are they pushing to sell a particular model?
As mentioned, manufacturers often offer bonuses to dealers to push certain models. It’s not necessarily because there’s something ‘wrong’ with those models; it’s usually just because they haven’t sold as well as similar cars.
If, for example, you’re not too fussy about the colour of your new ride or you could live with a sedan over a hatch, you can benefit by buying a model that’s a little less popular. These vehicles are usually positioned front and centre in the caryard, and have discounted prices enticingly splashed across their windshields.
Check the date before you buy
Many people are happy to buy the previous year’s model to save even more money. After all, 2018 and even 2017 wasn’t that long ago, plus you’re still going to be the first person to drive it off the lot (unless you go for a demo car, but more on that later).
Although last year’s models tend to be cheaper, they also don’t usually retain their market value as well. That means that, unless you intend on keeping your car for longer than the usual 4 years, you may find that you get stung when it’s time to sell again.
This isn’t necessarily a dealbreaker for everyone. If your focus is on saving money in the short-term and keeping your car for the long-term, buying a slightly older model could still be a great option for you.
Ask about demo cars
Buying a demonstrator model – ie cars that are used for test drives – may save you even more cash during the EOFY car sales. Sure, the car will have clocked up a few kilometres (usually no more than a couple of thousand), but it’ll also have been kept neat and tidy by the dealership.
Also, salespeople are usually aware that a car previously used as a demo might not be as flashy as a brand spanking new set of wheels, so they’re often more willing to add in plenty of extras.
Do your due diligence
Just because it’s an EOFY frenzy, doesn’t mean you should just stroll in without doing your homework. Make sure you’re aware of the models you’re most keen on, what other dealers are offering, and what you’re willing to pay.
You might also want to brush up on what’s standard for particular cars you like. For example, some manufacturers offer a four year warranty with every vehicle. Knowing this means you won’t be fooled if your salesperson, for example, tries to ‘generously’ add a four year warranty as ‘part of the deal’.
- Estimating the cost of car insurance before you buy a car
- Take the stress out of test driving a car
- How to negotiate buying a car
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