The new car market loves a sale. This is a highly competitive sector with the Australian motor vehicle market packed with choices for buyers. Both manufacturers and dealers are keen to get their slice of the action. So much so that it may seem that at any time in the annual calendar, you can find some type of sale across one or multiple brands.
The run-out sale or clearance is just one of many types of sale events that are offered across the new vehicle sector. At Jade Car Loans we prepare for quite a run on our cheap car loans during sale events as our customers seek to improve their new car deals even more with our cheap finance. To assist you, here are a few tips and hints on understanding car sales and getting the best deals on the purchase and your finances.
Motor Vehicle Sales Events
Sales events are held in both the new and used car areas but tend to be more prominent in the new vehicle sector so we’re concentrating on new cars in this article.
- Model clearance – dealers and manufacturers clearing existing stock before new versions of a particular model arrive or when it is the end of that particular model. Consider the features of the newer model against those on the discounted, clearance model to ensure you will be happy with your purchase.
- Plate clearance – discounted prices on vehicles from an earlier year. Check what differences will be on the new stock to ensure you don’t miss out on a feature you would have liked, even at a higher price.
- Demo sale – Demonstrator vehicles are cars that are kept in the showroom for customer inspections and test drives. At a certain point, the dealer will decide to sell the demos and they can represent great value as they have usually only clocked up a few kilometres and can include many accessories and options.
- End of year sales – retailers and sellers across many industries run EOY sales. In the car industry, it may just be a promotional event and not in necessarily attached to the imminent arrival of a new model.
- EOFY – end of financial year sales are primarily offered to attract business buyers wanting to realise tax deductions on new vehicle purchases before the end of the financial year.
- Special offers – manufacturers and dealers offer individual offers at various times of the year. These often include free upgrades to better optioned vehicles, free rego and CTP. Check into these closely to ensure that any freebies or free extras are items you want.
- Run-out sales – these can signal the end of a particular vehicle or model being available in Australia, simply another name for a model clearance or can mean the exit of the manufacturer from the local market. There are aspects to consider regarding run-outs which we have detailed below.
Jade Car Loans offers our signature cheap finance deals on both full-priced and discounted new cars for both personal and business buyers.
What’s running out?
When considering a ‘run-out’ deal, it’s worth considering what is running out and what impact the situation may have over the life of the vehicle.
- End of the road for that model. The classic ‘end’ story in Australian automotive history is that of the Leyland P76. It just didn’t achieve success and was viewed by many as a ‘lemon’ and was discontinued by the manufacturer. When a vehicle just doesn’t gel with the local market, a manufacturer may decide to withdraw it from sale.
Currently, Mercedes-Benz is offering run out deals on its X-Class V6 ute with the company ending production of the vehicle after only 3 years after launching. With such a huge ute market in Australia with many such as Toyota, Mazda and Mitsubishi dominating the scene it can be a challenge for a new player to get their share.
- When the manufacturer exits the market. In another form of run-out, such as with Holden in Australia, the manufacturer may leave a local market completely. In some cases, they may still offer imported vehicles or the badge may disappear completely.
In some instances such as Holden, there can be a rush to purchase the last of any iconic vehicles with the hope they may end up as highly prized collectibles.
- Models leave the scene regularly. Some are renewed or reconfigured and launched under a different name, others are completely superseded. Some manufacturers leave a car category completely as we are seeing with the light hatch in favour of smaller/compact SUVs.
- With the move to electric vehicles and hybrids, petrol powered vehicles are being phased out by some manufacturers.
When considering the purchase of a run-out, look into the availability of parts and servicing over the anticipated life of the vehicle and beyond. You will want to be confident that you can have your car properly maintained and that it will present good resale value when you choose to upgrade.
Finance and Insurance Impacts
Buying a car at most sale events should have no impact on the finance deal you can secure through Jade. The cheaper price you’re paying for the car along with our cheap commercial car finance rates, represents even lower monthly repayments. Our interest rate offers and application requirements apply to both full priced and discounted new vehicles for both private and business buyers.
If you’re considering a new business car loan and buying a run-out vehicle, there may be an impact on the insurance. Costs of repairs are considered when insurers quote premiums. If parts and servicing are not going to be as widely available as previously, this may, and we stress, impact the cost of insurance. If the manufacturer is not represented by authorised service centres, you would need to source a reputable and reliable mechanic who can access generic parts to suit the vehicle.
Pre-Approved Car Loans
When planning to take advantage of a motor vehicle sales event, arranging a pre-approved secured car loan through Jade beforehand, can be a very smart move. Some models may have limited quantity available and could be offered on a ‘first-in’ basis. Having your finances sorted can mean you are first in line for the best deals.
Jade Car Loans offers pre-approved finance on both personal vehicle finance and business car loans.
To take full advantage of motor vehicle sales events, contact Jade Car Loans at 1300 000 003 to discuss pre-approved finance.
DISCLAIMER: READERS ARE ADVISED THAT THIS INFORMATION AS PRESENTED IN THIS ARTICLE IS INTENDED FOR GENERAL INFORMATION PURPOSES AND NOT AS FINANCIAL ADVICE. PEOPLE NEEDING FINANCIAL ADVICE ARE RECOMMENDED TO CONSULT WITH A FINANCIAL ADVISOR TO ASSIST IN REGARD TO THEIR INDIVIDUAL CIRCUMSTANCES. INFORMATION AND CONTENT IN THIS ARTICLE MAY HAVE BEEN SOURCED FROM A RANGE OF PUBLICATIONS AND INFORMATION RESOURCES. NO LIABILITY IS ACCEPTED FOR ANY ERRORS, OR MISINTERPRETATION OF OTHER ISSUES AROUND THE PRESENTATION.