If you’ve been holding your horses all year to buy a car during end of financial year (EOFY) sales, now’s the time to take action.
EOFY has traditionally been seen as the best time to nab a car bargain, as dealerships are more willing to slash prices and throw in extras to sell stock and boost revenue (as well as their own bonuses) before the accounting period ends for the year.
It's typically advertised as "EOFYS" (because of the sales), but this end of financial year is tipped by the industry to be a car buyers’ market like no other, thanks in part to an ongoing dip in vehicle sales. New vehicle sales dropped by 35 per cent in the 12 months to May 2020, figures from the Federal Chamber of Automotive Industries show, which could spell bargains if you go looking.
Australians are also taking out fewer car loans and paying off what they already owe, as the country enters a recession for the first time in about 30 years. New road vehicle loans fell by about 39 per cent to $625 million in the 12 months to April 2020, the latest lending data from the Australian Bureau of Statistics indicates.
The fall in sales and new loans have largely been caused by the double whammy of the bushfires and COVID-19.
So, if there’s a best time to go car shopping, it may well be now. RateCity has compiled some of the top-rated car loans for June 2020 to help you get started on your research. You should always compare multiple car loans from different lenders before deciding which one is right for you.
(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)
New car loans
For those borrowing to buy a new vehicle up to two years old. Assumes a secured $30,000 loan on a 60-month (5-year) loan term.
Used car loans
For those borrowing to buy a used vehicle two years and older. Assumes a secured $20,000 loan on a 36-month (3-year) loan term.
Green car loans
For those borrowing to buy a new eco-friendly vehicle. Assumes a secured $30,000 loan on a 60-month (5-year) loan term.