The different types of EOFY deals carmakers offer

Posted on June 6, 2024Comments Off on The different types of EOFY deals carmakers offer

June is typically one of the busiest months in Australia for new car sales, thanks largely to end-of-financial-year (EOFY) deals intended to sweeten the buying process and get stock out the door.

These deals are often characterised by price discounts, the addition of accessories, or various financial bonuses, meaning buyers will almost always benefit by purchasing a new vehicle in the run up to June 30.

There’s a lot to consider if you’re looking to buy a car at this time of year, so here’s a quick overview of some of the key things to look out for.

Why bother with EOFY deals?

For a manufacturer, EOFY deals are intended to make its products appear more valuable.

By reducing the price or adding accessories at no cost, new cars become more attractive to buyers and are easier for a dealer to sell.

This means there will be more room for new models in dealerships as older stock clears out, and allows them to improve the sales they report back to head office for a given financial year.

The key thing to remember is the fact buyers usually need to buy and pick up their new vehicle before June 30 to ensure the process is wrapped up before the new financial year kicks off – but delivery deadlines can vary between manufacturers depending on stock availability.

“You get a lot of people who want to take advantage of the asset write-offs with the government,” Waverley Mazda general manager Ravi Emaduwage told CarExpert.

“People need to pick up their car by June 30 to make sure it’s in this financial year,” he said. “Especially with businesses out there buying BT-50s or even CX-60s as their drive cars, they need to make sure that it’s on this side of the financial year.”

What are the different types of deal?

There are three main types of offers typically seen at EOFY: finance, runout, and factory bonuses.

Manufacturers will often offer low finance rates to make it easier for people on a budget to get into a new car. Finance deals can be compared between dealers and major lenders (like banks and credit unions) to find what’s best for you.

Runout deals are often applied to cars that will no longer be manufactured due to the arrival of a new generation or model cancellation.

They’re a way of clearing old stock out of dealerships to make way for new models, and aim to entice buyers to settle for an older car by offering better value than might be on offer in a bigger, higher-tech update.

Throwing in factory bonuses is a tried and tested way of adding value to a car. They can include the free addition of previously optional accessories, or covering on-road costs so a buyer can pay one drive-away price without the hassle.

In many cases these offers are combined, so it pays to shop around.

Why offer a certain type of deal?

Mr Emaduwage said it varies depending on stock availability between different manufacturers.

“Most of the time, it’s what you’ve got in stock but only because most customers need to pick up their car before June 30. Throughout the year, you generally stock up for the right amount as you go into [EOFY],” he said.

“We’re lucky enough at Mazda to have a great range, we’ve got great stock at the moment compared to other brands, so everything on the range at the moment is included in our EOFY sale.”

Mr Emaduwage said the best way to make sure you’re getting the most out of EOFY is to go out and talk to dealers.

“The easiest way is to come down into a dealerships and find out exactly what’s on the table,” he said.

“Depending on what you’re after – car, specs, colour – anything that’s in stock will be something we’re wanting to move on.”

There are also government incentives to be taken advantage of, like a novated lease scheme that could mean big savings on the purchase of an electric vehicle if it avoids Fringe Benefits Tax, or instant asset write-offs for ABN buyers which were just extended to 2025.

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