A lot of people are asking us whether they are going to be able to get a good deal at the end of financial year (EOFY) sales. We spoke to carloop founder, Riz Akhtar for his opinion on the following questions.
Do dealers actually offer good prices at this time of year?
Generally around the end of May/June is a good time to get a deal. What usually happens at the end of June the car manufacturers such as Toyota, Mazda and Honda have higher volume targets. Which is good news for new car buyers, as the dealers need to sell more cars. This usually translates into dealerships being more inclined to give you a good offer because they need to achieve the high sales targets imposed by manufacturers.
As an example, if we look at a family SUV, Hyundai Tucson which is quite popular, the Active X model which normally is advertised at the dealerships for $38,500, is actually being advertised at $32990 driveaway with another $1000 on top of that. This is a substantial saving that you wouldn’t normally see during the year at different times.
What are some of the things that I should be looking out for at EOFY?
At this time of year, its best to keep watch of advertising that is done by most of the manufacturers/car brands. Easiest way to do this is monitoring the individual manufacturers websites. For example Hyundai, whom have their EOFY sales on the home page. Other manufacturers keep their EOFY sales under their Offers tabs.
For those further ahead in the new car buying research journey, it’s a good time to visit your local dealership and have a chat to them about what their specific EOFY deals are. This is not only on driveaway price savings, it could be things like accessories or other options that are being offered with the car at this time of year.
Realistically how much can you expect to save shopping at this time of year?
In my experience, and what I have seen through the prices submitted at carloop, you would be expected 3-5% savings on top of what normal savings you may be able to get at dealerships at this time of year.
In terms of price, I would expect $1-2k minimum being saved this time of year. This is, for the most part due to what I mentioned earlier regarding the higher volume targets required to be achieved by manufacturers and therefore dealerships.
Does location of purchase matter in regards to price?
This is a pretty common question that we get at carloop from prospective buyers. It can play a role in the size of the deal that you may get.
For example, if you are based in some of the smaller cities in Australia, Canberra, Perth, Adelaide, you may struggle to get a similar saving to those buyers in Melbourne or Sydney.
This is mainly due to competition. As there are a lot more dealerships in Victoria and New South Wales, it may be worth your while to look at some of the stock at interstate dealerships. They have access to a higher number of cars, therefore can afford to give better deals.
Is there a way for buyers to save their time haggling with multiple dealers?
We evaluate your deal with thousands of other prices, and provide you with feedback as to whether it’s a good deal, allowing you to decide how much farther you could be negotiating.