Average Australian Mortgage Size in 2023
29 Nov 2023
The flawless paintwork, the performance options, the ride, the comfort, and that smell. There is so much to like about buying a new car. But no-one likes paying top dollar, so planning ahead can make a noticeable difference to the price tag.
Unfortunately, buying a new car has its share of pitfalls unless you do your homework to give yourself the best chance of negotiating a good deal on the vehicle of your choice.
Feeling like you paid too much is a sure way to take the gloss off your new wheels, so the best bet is to be an informed buyer and use the calendar to your advantage.
As well as having yearly sales targets, some dealers also have monthly targets they have to meet, usually one that grants them a bonus. Dealerships themselves may also receive bonuses from manufacturers for selling a certain make or model of a particular brand.
It can be harder to pull off scoring a bargain at the end of each month as these sales aren't advertised in the same way that end of financial year sales are. However, armed with a bit of luck and negotiating skills, you could snare a great deal on a new set of wheels by purchasing at the end of the month.
Bonus tip: You're also more likely to get a good deal on Mondays as Monday is usually the slowest day for car sales, but youll have to be willing to take your time with the dealer.
The Christmas and New Year periods in December and January can be a great time to bag a bargain price on a new car, as dealerships generally run end of year clearance events. The reason for this is due to the fact that in the space of a few weeks, the vehicles available will become ‘last year’s model'.
Although not quite as prolific as the previous two months, February can also have a few deals on offer, as cars built in the previous year will still be offered among the new cars built in January, but at a lower price.
Whether it be the bright ads plastered everywhere from television to social media, the most popular time to snag a car for a steal is in May and June, before the end of financial year (EOFY). Like many businesses, car dealerships start their financial year on July 1, with most of them looking to hit sales targets before then.
Before the calendar rolls over on June 30, dealers often slash prices on cars they are yet to sell in order to hit their sales targets, and are also more likely to include extras like extended warranties and roadside assistance for little cost.
This period is usually around 30% stronger for car sales than normal, so it might be worth waiting until then to see if you can find a car that needs to be sold.
Drive a hard bargain by looking around multiple dealerships too.
New model releases are a great time buy a car because it means older versions will likely be available at a discount. If you're not in a hurry, or not too bothered about owning the latest and greatest version, waiting to buy your car until the new model is released could potentially save your back pocket a hefty sum.
Car sales are a great opportunity to buy, especially for first-time car buyers, with the potential to save thousands off a new car purchase. While the savings may certainly be tempting, buying a new car during sales time has the potential to throw a spanner in the works given the number of options available from car dealerships across Australia.
While it can be tempting to buy a car quickly during sales time, there are still some things you need to be careful about so you know you're getting the most out of your car purchase.
Here are a few tips for buying a car at sale time.
Arriving at a car dealer without any knowledge of the car you're looking to buy is a huge mistake. As we all know, it pays to do your research. Good thing we have the internet today where we can easily search car reviews, specs, features, and prices. So whether you are buying a brand new or a used car, this car buying advice will help you know what to expect from the car you’re buying.
A car loan calculator is a handy tool you can use to get a rough estimate of your car loan repayments. You'll be able to budget your monthly expenses when you decide to take out a loan, and you’ll know if you can actually afford the repayments.
If you're looking to finance the purchase of a new car with a a car loan, obtaining pre-approval will help you narrow down your choices in terms of the price range. You’ll get an idea to how much you can spend on a car, and how much you can borrow to purchase a car.
Before signing away, it's important to take care with potential accessories and the terms and conditions on the sale by reading through the fine print of the sale contract. Consider everything that is involved in your new car deal, including the types of insurance and credit contract as this can increase your repayments and the overall price of the car.
End of financial year is generally the best time to purchase a new car at a discounted price as most car dealers try to sell as many cars as possible at this time to meet their yearly quota. It is important to also not extend yourself beyond your means, considering your finances and financial position before signing on the dotted line for a new car. By following these car buying tips, you may be able to put some cash back into your pockets with the purchase of a new car.
In the market for a new car and looking for finance? Check out some of the great car loan rates at loans.com.au
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.