If you’re a bargain hunter, an End of Financial Year (EOFY) sale may seem like the perfect opportunity to purchase a car. Car dealers are seeking to end on a high as they try to clear outdated stock – this means better deals for you as customers. Nevertheless, lower interest rates do not always mean lower repayments.
A report made by the Australian Automobile Association (AAA) over the 2016-17 financial year revealed lower interest rates are offered to encourage larger purchases.
It’s in the details
It’s important to be wary of reduced interest rates when it comes to EOFY car sales. Reduced interest rates may encourage customers to borrow more money. Before borrowing at a reduced interest rate, consider your budget as well as your capacity to repay a loan. Reduced interest rates may sound good at first, but you may end up paying more than you estimated if you’ve borrowed more cash than you initially planned at a higher rate.
Our loan calculator can help you estimate the costs what your car finance repayments might look like.
Eyes on the prize
The important thing to remember is that at the end of the day, you have the final say. You may be prepared to borrow more money at a lower interest rate, but be aware of your financial limitations.
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The information contained in this blog is accurate only at the date of publication.