Car finance expert spills the best tips for EOFY sales
From the cars that promise the biggest savings to tips for business buyers, here's how you can get the most out of the EOFY car sales.
As the 30 June deadline for End of Financial Year (EOFY) car deals fast approaches, we spoke with a car loan expert from Stratton Finance who explained to us why right now is the perfect time to buy a new car.
Can you explain what EOFY sales are?
According to the Stratton Finance spokesperson, the EOFY sales are a rare opportunity.
"EOFY is a great time to be considering looking at buying a new car. It's the only one of a few times in the year when all the commercial factors are pointing in favour of consumers."
The spokesperson went on to talk about how dealers may be willing to add on optional extras to make that sale.
"Not only do car manufacturers use this period to generate the last rush for sales revenue with discounts and added extras to create demand but more importantly, and beneficially for consumers, manufacturers are desperate to move older stock. This is where consumers can get the best deal with significant value-added extras."
Which cars promise the biggest savings?
The Stratton Finance representative said if you were happy buying a 2017 model, for example, over a current year car, you might well play the car dealer at their own game.
"We see at this time of year customers who are open to buying the same car, but with an older build or compliance, always getting the biggest and best value. Manufacturers don’t promote the fact that older stock begins costing them more money than they can make selling a brand new one."
What are the typical cost savings buyers can expect?
Thanks to Stratton Finance's sister companies, the loan company has access to car market industry data. The representative was able to look at typical savings.
"When it comes to savings we see two dimensions when buying a new or demo car. The first being sale price. Depending on the make and model we see savings between 7% - 23% off the original starting price."
The expert told us the savings weren't only financial ones.
"The second is value-added extras, again depending on the make and model it would be unusual for Stratton customers to not have received complimentary servicing for 2-5 years, free roadside assistance, free factory extras like tinted windows, leather seats or even a sunroof."
Which car financing methods or lending products offer the best tax benefits for business buyers leading up to the end of the financial year?
Business vehicle buyers can get in on the action, too.
"During this time of year, we experience a significant increase in enquiries about chattel mortgages and novated leases from both retail and business customers. While each borrower's tax circumstances are different, both chattel mortgages and novated leases offer tax benefits via GST deductions, operating costs for business purposes, and depreciation benefits may also apply."
Can you share any other tax tips for borrowers looking to take out a loan during EOFY sales?
The spokesperson also suggested you should speak with an accountant before entering into any business finance contracts.
"The single biggest piece of advice I would give is to make sure you get qualified advice from your accountant. From time to time consumers come to Stratton for help on how to get out of a finance contract they entered into with a car dealer or bank that it is not fit for their personal tax circumstances and are now experiencing some potential pain with the tax office."
What's the deadline for scoring a lucrative deal?
If you want to take advantage of the offers, or were thinking about purchasing a car, you don't have long. You should get pre-approval now.
"Given the competitive market conditions and the number of offers in the market we are encouraging customers to complete a full finance pre-approval and use the final ten days of the financial year to capture the best discounts. If the car dealer knows you are ready to go and are able to pay within 24 hours, they will usually do everything they can to get the deal done and you on the road in your new car. Shopping for a deal at the last minute without a pre-approval can be difficult to grab the attention of the car dealer, as they are looking to move as many cars as possible before 30 June 5 pm."
Can you briefly tell us what Stratton Finance does?
"Stratton Finance is a car finance broker; the team provides unbiased advice and research about finance options for your car. Unlike car dealers or banks, we don’t believe "one size fits all" when it comes to financing. Our team not only makes sure customers are not buying a lemon or a stolen car, but we also research our industry leading finance partners and come back to customers with the three best deals that best fit their personal circumstances."
What is the most unusual thing you've ever loaned money out for?
With a long operating history, Stratton has lent money for some really quirky purchases, including a sausage machine!
"In recent times the two items that stand out the most are an industrial size sausage machine and a G5 Private Jet."