As the calendar year comes to a close, car dealerships across Australia are preparing for their end of year plate runout sales.
This period is characterised by significant discounts on current year models as dealers aim to clear inventory before new models arrive.
Understanding this sales phenomenon and how a car finance broker can assist you in securing a great deal can enhance your car buying experience.
What are end of year plate runout sales?
End of year plate runout sales occur when dealerships discount vehicles that were manufactured in the current year to make way for next year’s models.
These sales typically begin in December and can extend into January. They provide buyers with an excellent opportunity to purchase a new car at a reduced price.
The term ‘plate clearance’ refers to the vehicle’s build date plate. This plate is crucial for determining its model year and resale value.
Why buy during plate runout sales?
- Significant discounts
Dealerships are motivated to sell current stock quickly. These sales often lead to substantial price reductions.Buyers can benefit from discounts, cash back offers or additional perks such as free accessories or extended warranties.
- Model year considerations
Vehicles built in the current year may be discounted heavily as they will soon be classified as last year’s models.Buyers can take advantage of this pricing strategy without sacrificing quality or features.
- Inventory pressure
Dealers often face pressure from manufacturers to reduce their inventory levels before the new year.This situation creates a competitive environment where buyers can negotiate better deals.
How your car finance broker can help
A car finance broker plays a pivotal role in navigating the complexities of purchasing a vehicle during these sales.
Here’s how our car finance team can assist:
- Access to better financing options
As car finance brokers we have relationships with multiple lenders and can help you find competitive financing rates tailored to your financial situation.This access can lead to lower monthly payments or better loan terms compared to dealership financing.
- Negotiation expertise
Our brokers are experienced negotiators who understand the market dynamics during plate clearance sales.We can advocate on your behalf to ensure you secure the best possible price for your chosen vehicle.
- Understanding your budget
Our car finance team will help you establish a realistic budget based on your financial circumstances, including potential trade in values and financing options.This clarity allows you to focus on vehicles within your price range and will save you time and effort during your search.
- Streamlined process
With our finance broker managing the paperwork and communicating with lenders and dealerships, you can enjoy a more efficient buying process.This support is particularly beneficial during busy sales periods when time is of the essence.
TIPS FOR MAXIMISING YOUR SAVINGS
- Do your research
Identify the models that interest you and their typical pricing before heading into a dealership
Knowledge is power when negotiating deals during sales events. - Be flexible
While you may have specific preferences regarding colour or features, being open to alternatives can increase your chances of finding a great deal. - Timing matters
If possible, shop towards the end of December or early January when dealers are most eager to clear their inventory. - Consult your broker early
Engage with our finance team well before making a purchase decision so we can provide insights into financing options and help you prepare to negotiate.
End of year plate runout sales present an excellent opportunity for savvy car buyers to secure great deals on new vehicles.
By leveraging the expertise of our finance team, you can navigate these sales effectively to ensure that you not only find the right car, but also obtain favourable financing terms that fit your budget.
As you prepare for your next vehicle purchase, consider these strategies and insights to make the most of this advantageous buying season.
Do you have to buy during the sales?
Many car buyers wait for the plate clearance sales to save on their new car purchase. However, you don’t need to wait for plate clearance sales to save on your new or used vehicle purchase!
A novated lease (or salary packaging) can be the most tax effective way to drive your car as it allows you to pay for your new car and its running costs using your pre-tax salary.
That’s why it is always best to speak with us first to explore your borrowing capacity and how to best finance your purchase.
We look forward to your call and helping with your vehicle finance options.