The EOFY period prior to 2020 has seen a massive 30% uplift in sales traditionally for car dealerships during the month of June. So what effect will 2020 have on June sales this year right after the car sales industry has taken a 13.1% decrease in sales in a single quarterly period?
As dealerships around the world begin reopening their doors on June 1, many cross their fingers that this may mark the uplift in the sales industry needs so badly to regain profitability within a dismal year dictated by COVID-19. In Australia, while our dealerships have been open for most of the lockdown period, a large proportion of consumers have been unaware of the rules and regulations and social distancing has meant their overall foot traffic and demand have taken a nosedive.
This financial year, more than any, is the era of the consumer. Not only will consumers have a greater choice of models and prices, but they will also have more deals and options.
Although we encourage anyone in their means to take advantage of this time, we also want to make sure anyone purchasing a car in this period has all the facts and best tips so they are not taken for a ride disguised as a deal.
Tip 1: Take advantage of the end of the month
Car salespeople, like those in any industry, are given a target to hit each month. The end of the month is generally the time when they will be pushing as hard as they can to reach those targets if they haven’t already.
2020 will undoubtedly have higher targets than any other year before in order to make up the loss of the previous 3 months. This will mean the dealerships will incentivise their salespeople to get more cars out of the door.
These incentives will mean a better deal for the consumer to purchase stock. While these incentives may not be the price of the car, it could mean extended warranties or free optional extras. While you can look for deals at the beginning of the month, don’t be surprised if you get a better deal by signing at the end of the month.
Tip 2: Do your homework
Those who are better prepared get a better deal 100% of the time. Call around for price ranges of different dealerships and models. Not every dealership is the same so don’t expect the same service. Check reviews, current sales, and which models regularly have what extras which aren’t provided.
Tip 3: Negotiate HARD
Now is the time to dust off your hard-ass hat. While your car dealers are still looking for maximum margin, you will be blocked by no’s at some point in your negotiation. Always remember throughout this process that you are a rare gem at this time and will have more options than anytime before.
Shortlist the vehicles of your choice from multiple dealerships and shop around. The best dealers will be those that provide you optional extras to get around the margin they need to make.
Tip 4: Ask for extras
So while you may not be able to lower the price of the vehicle of your choice, 2020 increases the likelihood of obtaining more extras for less cost during this period which may not be available at any other time. Examples of extras include free on-road costs/drive-away pricing, upgrades to better models, or even better deals on interest rates.
Tip 5: Get your car trade-in ready
If you are looking to trade-in at the dealership, when buying your new car, make sure any repairs which will affect the value are done prior to inspection. Research how much your car is worth prior to heading in. If you intend to trade-in your current vehicle, the dealership will provide you a quote to trade-in, make sure this lines up with what you have researched prior to trade-in or take another route to sell.
Tip 6: Check out the best savings of 2020 for each dealer
Research the best deals of the year before you head to each dealer. A number of retailers which in the past have had vehicles out of your price range will most likely have lowered prices which you can take further advantage of at EOFY. Volkswagen has dropped their prices up to $6,000 on their most popular models within the last 3 months. Check out carsguides top car prices of 2020
Tip 7: Sort out financing before hitting the dealership
While we recommend organising financing or at least knowing your options before hitting the dealership, now more than ever is it important to have maximum buying power at the dealership when buying a new car. Why? Having financing approved means you can take floor models or drive-away models there and then, decreasing the price of your desired vehicle even further. To get the best financing deals for you make sure to compare with CarClarity now. In 60 seconds get the best rates for you based on your tailored circumstances.
So take advantage of the next month’s car savings as much as you can. This financial year more than any other will be the time to get the best vehicles at the best prices.
David Fahim is CarClarity's COO, joining forces with two founding team members that share the same passion of helping customers get the right car loan.
What are the reasons that a car loan application could be rejected and what can you do to avoid your application getting disapproved? We have put together the top 3 reasons for application rejection and what you can do to ensure you get the best loan for you.
Buying your first car is a milestone within a young driver's life. A number of life lessons are thrust upon you and for many this may be the first significant purchase you make. Read our first car buyer's guide to get started.
A greater number of savvy Australians are looking to hack their current short term and long term expenses and boost their savings through car loan refinancing. Find out how you can take advantage here.
Ready to start?
Finding your loan matches only takes a minute and won’t affect your credit score.