End of financial year is a popular time to buy cars, with many dealerships offering end of financial year sales (EOFYS). However, it’s important to be aware of the true value offered by a cheap deal, both in terms of the vehicle you’re buying and car loan you’re using to pay for it.
One risk to consider when looking at an EOFYS deal is the age of the vehicle you’re buying. Many dealers use EOFYS to run out older models to make room for newer stock, so it’s possible you could be buying a car that will end up obsolete sooner. This in turn could push up the future cost of maintenance, servicing, and insurance.
According to the RACQ, car buyers may want to consider checking a vehicle’s date of manufacture before buying, even specifying it in the sale contract. Plus, looking beyond the sticker price and considering the value offered by the car’s accessories may be able to help buyers avoid being upsold accessories they don’t really need.
“Buying a car should be a considered, well-thought-out decision. Do your sums, know your budget and make sure you don’t get talked into buying something you’re not going to be able to afford in the long run.” – Clare Hunter, RACQ
Similarly, it’s important to carefully consider your options before committing to a car loan. Dealer finance may be convenient, but may not be the most affordable option. And the car loan with the lowest interest rate may not be the option best suited to your needs.
Plus, not every car loan will suit every situation. For example, a secured car loan may have lower interest rates, but only be available for buying new vehicles whose value can guarantee the loan. On the other hand, an unsecured car loan may be an option for buying a new or used car, but have a higher interest rate.
Just like how it’s important to know your stuff before buying a car, it’s important to consider all the factors involved before committing to a car loan. Looking at the interest rates, fees, features and benefits of different options from a variety of lenders can give you a broader perspective, and help you make an informed decision. Making a side by side car loan comparison is one way to quickly get a better idea of which loans may suit your needs.