The start of a new year can signal the time for big decisions. With last year's regrets to make up for and this year's resolutions to plan, there can be a lot to consider especially if buying a new car is in the mix. The end of the year and into the early part of January is often a big sale time in the motor vehicle sector. Dealers are keen to move stock to make way for new models. At Jade Car Loans we’re seeing plate clearances across the market. But at the same time, car makers start teasing and tempting with information about their upcoming new model releases. So what should you do? Grab a plate clearance or sale deal on the current model or wait for the brand new model to arrive.
We’re covering several issues to assist with arriving at your own decision and as always, Jade Car Loans is on hand to give you quick quotes and fast approvals across all our car finance products.
Current v New Model
While the decision of when to purchase a new car will be based on numerous factors, here are a few ideas we’re throwing into the mix around buying a current model or waiting for the new release.
COVID has made us all realise that we need to be flexible with our plans as life can be upturned quickly and dramatically through events well outside our control.
If you wait for the new model:
- Will it be significantly different to warrant the higher price which usually accompanies a new release?
- Will it be as you expected?
- Does it have features that will serve your business needs in the future?
If the price you buying deal maker or breaker, then buying now, at clearance or sale pricing could be the way to go.
Buy now:
- Capture a cheap deal and possibly save significantly compared with the newer model.
- Savings on the price tag also convert into what you may save over the term of your car finance.
- Purchase a vehicle so that you can read reviews and know what you’re getting.
2021 New Car Models
As usual, many car makers have plans for new model releases throughout 2021. Some provide an indication of when while for others it is TBA. Pricing is also usually delayed until closer to the launch date so you may not know how much you will need to pay on that new model until it lands in Australia. Another aspect to look out for is the growth in the EV market. Some models will arrive as fully EV only which may or may not suit your requirements.
We referred to a reputable source for some indication of what manufacturers will be bringing new models into the Australian market in 2021.
- BMW is reported as launching several electric SUVs in Australia later in the year.
- For a work vehicle at a great price point you could wait for the new model GWM Steed ute. Pricing for this maker is significantly lower than the leaders but could be worth considering.
- Also in the workhorse market, a new generation Nissan Navara is expected in 2021.
- Skoda has several new models due early in the year.
- In March you can expect the release of a new Subaru Outback which may offer wagon buyers a great option.
- A new Toyota LandCruiser is expected and 4WD fans will no doubt already be sizing it up.
That’s just a mere few but you can check the website of your preferred manufacturer for ‘coming soon’ notices and ‘register your interest’ tabs.
Finance Now or Finance Later?
As we mentioned above, differences in prices are realised through the entire finance term in the repayment. We cover some of the other financial aspects to consider:-
- Regarding business vehicle finance and personal car loans, Jade Car Loans products will remain the same into 2021: Secured Car Loan, Chattel Mortgage, Leasing and CHP.
- Our business car loan calculator and interest rates comparison chart to easily compare pricing will be available at all times.
- Do you have a loan on your current vehicle that you intend to trade in? Consider the costs of paying out that loan early when weighing up car purchase pricing.
- If you have business finance on your current vehicle, are you hoping the trade-in value will cover any balloon/residual that is owed? Get a valuation on your current vehicle and a payout figure from your lender.
- Interest rates: Based on comments by RBA Governor Philip Lowe, we would expect interest rates to remain at low rates in 2021. But we didn’t expect the official cash rate to drop below the .25% rate and it was. So with the current COVID situation still having an impact on the economy, who knows?
- Economic outlook: The Northern Beaches-Avalon COVID-19 cluster outbreak is reported to have cost the NSW economy in the order of $ 3 billion and the second wave and extended shutdown in Victoria made a significant negative impact on the Australian GDP and employment figures. It will be interesting to see if the Federal Government announces any additional support packages in light of JobKeeper ending at the end of March.
- Business tax measures timeframe: temporary full expensing and loss carryback may be of significance to your business and impact your vehicle purchase decisions. Review the timeframes and eligibility criteria.
Is there are better time or not to apply for a car loan?
The car finance market is not driven by the calendar but more by economic conditions which may impact our Jade Car Loans lenders. At Jade, we operate at the same pace and consistency throughout the entire year. So our finance products are always available at our better interest rates and individually tailored car finance packages.
To assist with your decisions, you can always apply for a personal car loan or business car finance, even well before you decide on which car. Pre-approved finance is available through Jade. These applications do have a use-by date. The pricing or quote provided will be valid for a certain time, after which the pricing will need to be assessed/reviewed.
Whatever you decide – buy a plate clearance vehicle now or wait for a new model to be released, Jade Car Loans consultants are on hand to assist with your finances.
To discuss your motor vehicle finance options call Jade Car Loans at 1300 000 003
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