Cars on sale may feature a range of price reductions and offers including cash backs, no charge extras, finance offers, clearances and free servicing. The range of terms used by manufacturers and dealers with their sales can vary, along with what buyers are actually receiving. All can present great deals and exceptional opportunities to buy a current model new vehicle at less than the usual pricing. Manufacturers and dealers across many markets are under scrutiny by the ACCC to ensure that they accurately present their pricing to consumers.

But to be confident that they fully understand what they are getting and to be sure it represents genuine value for them, buyers should know what all the terms mean. As the EOFY sales get into full swing, we cover off on the key terminology for buyers planning to buy a new vehicle on sale.

Cars on Sale with Price Discounts

Price discounts are fairly straightforward offers and what most buyers will be looking for to save money on a new car. The offer is usually advertised as $xxxx off the new price. These discounts may be offered across a brand and available through dealers. Typically, discounts will apply to selected models or selected variants of model ranges.

A big discount can be a magnet for buyers. Who wouldn’t want hundreds or thousands off the price of a new car? Before getting over-excited, buyers should ensure the discount is on the specific vehicle that they want and suits their purpose. They should ensure, despite the discount, that the vehicle is affordable for them. Also look closely at what’s not included in the price. Dealer delivery, rego etc can add significantly to the full purchase price.

Cash Back for Cars on Sale

A cash back offer or rebate is a form of discount on the purchase price which appears across many sectors during sales time. While this is essentially a discount, there is a more complicated process for claiming the discount. Buyers will still need to finance the full purchase price to be able to take delivery of the vehicle. The cash back will need to be claimed after purchase, possibly through the manufacturer.

The ACCC advises buyers considering purchasing with a cash back offer to check if the offer has an expiry date; how long it will take to receive the funds; and what steps are required to receive the funds. If planning to use the cash back funds to make an extra payment on a Secured Car Loan, the timing could be important.

Clearance and Run-Out Cars on Sale

Model clearances and run-out sales are very popular in the motor vehicle industry. Dealers need to clear stock of current models before the new models arrive. Run-out sales can pop up at any time during the year, depending on the manufacturer’s schedule for new model launches.

These sales typically have discounted pricing but only on selected models or, in some cases, on individual vehicles. Quantities are usually limited to what an individual dealer has in their showroom or warehouse. Buyers should check that the specific model they are after is included. They may need to ring around a few dealers to find out who has the model available.

If the run-out is only on the top of the range model, consider whether this is right for you or if the next model down at a lower price is more suitable. These types of events can also include demo vehicles. Demo, or demonstrator vehicles, are cars that dealers have used over the past year to demonstrate the vehicle to buyers. These can be good buys, usually with only around 500-1,000 kms on the clock and possibly with some extras included. With limited stock, it can be advisable to get pre-approved finance.

Free Servicing and Extras Included

New cars do come with warranties, many extended to 5 years. But the full cost of every service and everything included in every service is not covered under the standard warranty. As an enticement to buyers, manufacturers may advertise 'free servicing'. Buyers should look closely at what this includes and if it represents enough genuine value to them.

Including extras in the package is another marketing technique. As with free servicing, check that you do need those extras.

Finance Offers for Cars on Sale

One of the promotional techniques that car brands use at sale time is finance offers. Finance is often advertised at very low interest rates. These types of offers require close scrutiny by buyers before committing.

Is the credit product right for you?
Does it suit your business?
Are the terms offered fair?
Does any low rate offered cover the full loan term?
What is the eligibility?
Are there any terms and conditions?
Is the interest rate fixed or variable?

Taking on a finance contract is a major undertaking and buyers must be confident that the deal is right for them and does represent value. Our services and tools are readily available for all buyers – business and private, to use.

Use our Car Finance Calculator to compare our latest fixed interest rates on new car loans with the true rate offered by dealers. Using our services, buyers have their best rate sourced from over 80 lenders, by experts that know the most suitable lender and loan for each buyer.

Contact a Jade Car Loans broker on 1300 000 003 to ensure you secure your best financing for cars on sale.

DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT ARE PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE CONSIDERS THAT THEY NEED FINANCIAL ADVICE FROM THEIR OWN FINANCIAL ADVISOR.