EOFY car sales can be a great way to get a cheap vehicle for your business. Read on to learn some of the benefits and pitfalls of buying a work car before June 30.
Is the end of the financial year a good time to buy a car?
EOFY (end of financial year) car sales are often a great time to pick up a deal on a new or used vehicle. In May and June, car dealers are usually trying to move their old vehicles to make way for new stock so it makes sense that is when you can get the best driveaway deals.
Towards the end of the financial year, dealers also often have ex-demo cars for sale, which can be another source of bargains. However, there are a few tips that you should take on board when shopping at the end of financial year car sales.
EOFY car sales tips
Look out for low interest rates
Look out for low interest rates in both senses; you may seek them out so you can save money… but also look out because low interest rates can be a trap offered by some car dealers to lure you in and get you to spend more.
You may find that you end up borrowing more with the idea that a low interest rate may help you save money, but end up blowing the budget you had in the first place.
Make sure to carefully consider your finances and your ability to repay any car loan you take on, even if it is a great EOFY car deal. Talking through your plans and budget with a reliable lender is always advisable. A good lender can help you to calculate your exact repayments and explain how long you may be making them for.
Be prepared and do your research
When shopping at EOFY car sales, it is wise to do your homework. Spend time looking online into which vehicle may be best for your requirements and which dealers may have the best deals and the best service.
You may consider factors including:
- Fuel efficiency
- Reliability
- How easy the vehicle may be to repair and maintain
- The space you need
- The ‘pep’ of the vehicle
- Insurance
- How long you plan to keep the vehicle
- Warranty
- Servicing
- Roadside assistance
- The benefits of an EOFY ex demo car
This can also be a good time to get all your ducks in a row financially. Figure out how much you may consider realistically spending, and on what. If possible, it is also a good idea to get business vehicle finance approved before you even head to a dealership.
If you are hoping to trade in, you should also get your old vehicle ready. You may wish to arrange for any repairs or maintenance issues to be dealt with. You may also wish to make sure the vehicle is in top condition to try and get the highest resale value. Speaking of value, you should educate yourself as to the market value of your old vehicle. When dealers offer you a quote for your trade-in, you will want to be sure it is in line with real-time market prices.
Get ready to negotiate
Car dealers are keen to move their old stock at this time of year and so it can be the best time to get a few added extras.
Dealers are usually keen to get the highest price that they can, so you may need to be prepared to negotiate and hold firm. Even if you can’t get the dealer to lower the price, you may be able to negotiate successfully and get some extras like window tinting or alloy wheels thrown in.
Tax Changes
Thanks to the pandemic, a few things have changed in the last year or so. It may be important to stay up to date with Australian tax concessions for business owners before you splash out at the EOFY car sales.
It is highly advisable to read through the advice on the ATO website or consult a financial professional to fully understand what deductions or concessions you and your business are eligible for.
Who to talk to
For more information regarding business asset loans feel free to contact Finance One Commercial.
Finance One Commercial is a non-bank lender that provides opportunities for Australian small business owners to access cost-effective business equipment finance and vehicle loans. Get in touch to find out more.
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information.
