Money Hack: How to actually get a good car deal this EOFY
It's the time of year that car sales abound, but it doesn't mean all of them are winners.
June has officially arrived and that means car dealers are gearing up for end of financial year sales. Known everywhere as EOFYS, you can definitely find some great deals on cars during this time of year. But how can you find these good sales in the veritable awful-sale haystack?
Here are the tried and true strategies to make sure you walk away with a good car deal this EOFYS.
- Check the sale start and end dates and wait until the last minute to shop
Car dealers have targets, especially during sales, and if you wait to shop later in the sale, you may have a better chance at haggling a good deal.
- Shop around online and in a few dealerships before buying
You won't be in a good bargaining position unless you have information to work with, and you get that information by shopping around before your purchase. Make sure you check online sales and visit between two and four dealerships to get an idea of what's on offer.
- Get pre-approval before you head to the sales
Many lenders offer car loan pre-approval that can give you an idea of how much you'll have to spend on your new car. This will give you more confidence when haggling as you'll already have a solid number in mind as well as the finance sorted.
- Ask or you will never receive
If you wait for a car dealer to offer you the lowest price they can, you'll be waiting a long time. You'll never know if they'll be able to do a certain price unless you ask, so just ask.
- Curate your car
It's widely known that entry-level vehicle models are the cheapest and additional features raise the price. Make sure you tell the dealer if you don't need certain car features to ensure you get the cheapest price you can.
- Check the fine print of dealership finance
Dealership finance deals always sound enticing, who wouldn't want 0% finance? But remember to check the balloon repayment requirement, which can be as high as 50% of the purchase amount.
Dealership finance usually has terms of around three years, meaning you will need to pay half the car's cost three years after purchase. Or refinance the balloon repayments and stay in debt for longer. Keep that in mind when considering dealership finance.
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