May 26, 2017
June is a sweet spot on the calendar to drive a red hot bargain on a new car. Dealers are keen to end the financial year on a high not and that means outstanding offers are up for grabs.
Along with big discounts, June is also the ideal time to exercise your bargaining power; some clever negotiating could see you score valuable add-ons or enjoy an uptick on the trade-in value of your old car.
But there are traps to be wary of. In the hunt for a great motoring deal, it pays to have car finance in place before you buckle up for a test drive.
Pocketing savings on your new car can be a matter of timing. And right now, the end of the financial year is seeing car yards tempting buyers with a feast of special deals.
For the dealers, it’s an opportunity to beef up sales figures before the books close on 30 June. For motorists, it’s a chance to enjoy an extra serve of value.
Sweeteners, freebies and tax savings
The incentives on offer at end of financial year sales can range from marked down price tags to on-road cost savings or a few freebie car accessories. Added to this, the potential for dealers to be far more generous with trade-ins is just as valuable to your hip pocket.
For self-employed workers or business owners, this year’s June car sales hold special appeal. The tax office is still offering an accelerated write-down on asset purchases up to $20,000, making a new car a smart way for businesses to save on tax. With this instant write-down scheduled to end on 30 June 2017, there really has never been a better time for business owners to purchase a new car before 1 July.
Car yard finance? Steer clear
Along with budget-friendly offers, this is also the time of year when car yards ramp up dealer finance offers.
For drivers, seemingly tempting dealer finance can turn out to be surprisingly expensive. Scratch the surface for instance and you could find 0% p.a. finance comes with a ‘balloon’ payment - a lump sum that needs to be paid at the end of the term. Or, you may have less wiggle room to negotiate on price.
Have finance in place before hitting the car yards
A sensible strategy to drive a hard bargain is to have car finance sorted before you step into a dealer’s showroom.
With car finance pre-approved you’re in pole position to negotiate a better-than-advertised price. You also have a firm spending limit so there’s no risk of buying a make or model you can’t comfortably afford.
That’s why it pays to speak with your local Mortgage Choice broker before heading to a dealer. Lenders are offering extremely competitive rates on car loans right now and with a panel of over 25 different lenders, Mortgage Choice can recommend the car loan that suits your needs and your budget.
If you’re in the market for a new car, Mortgage Choice makes the buying process even easier with our handy car buying service.
Just tell us the make and model you’re looking for and we’ll search a national network of car dealers to get the best possible deal. We’ll lend a helping hand on the trade-in of your old car and even deliver your new car to your door.
To enjoy the excitement of a new car that suits your lifestyle – and your hip pocket - talk to your local Mortgage Choice broker about financing and purchasing a new car today.