4 Tips for Cashing in on End of Financial Year Car Sales

End of financial year (EOFY) car sales can be a win-win for buyers and car manufacturers. However, there are pros and cons that are both worth knowing about. One big pro is that you get the benefit of new car deals and buy a car that’s a runout model but still ‘fresh out the box’… but is that enough reason to go there?

In this article we’re looking at four tips for cashing in on end of the financial year car sales. From runout models and used cars to safety ratings and bonuses, we’ve got you covered.

Find out more about buying a new car this June.

Get to know what runout model means in car sales

So you’ve heard about cashing in on end of financial year car sales by getting a runout model. It sounds great, but what exactly is a runout model? Simply put it’s a car from last year’s vehicle stock. These are the models that are about to be replaced by the latest model and are in their end run of manufacture.

It’s just like you get last season’s fashion clear-outs. Or sales on the last release of iPhone and other tech as the new models are imminent. The same logic applies to cars – manufacturers and sellers want to clear out the old stock to make way for the new.

One obvious major difference between cars and clothing or gadgets is their size. Cars pack way above the size of most products, so clearing runout models to make way for new models is about floor space. Literally.

Given it’s the end of the financial year – a time when manufacturers and dealerships are racing to hit their annual target – getting as many runout models sold is great for the books too, of course. It’s one big reason why you’ll find such impressive end of financial year car sales deals.

Pros and cons

Pro. Getting a runout model means the features have been tested and you know what to expect. Sometimes there's barely any difference between a runout model and the new one so you get a great return on your dollar in that respect.  

Con. If a runout model had some considerable drawbacks then manufacturers generally improve on these in the new model. If this is the case it may be better waiting for the latest model to arrive.

Weigh up end of financial year car sales vs used cars

If you’re in the market for a car, you might be researching new and used options and weighing them against your budget. If you’re considering a used car vs a new one, then end of financial year car sales could make that new option all the more appealing.

After all you could cash in on new car deals but with the benefit of a reduced price tag. This means not having to worry about how well a previous driver maintained (or didn’t) their vehicle.

You’ll be getting a car with no mileage and no wear and tear. If you’re still considering your options, why not read our used car checklist and these questions to ask a dealer when buying a car.

Pros and cons

Pro. A new car is likelier to have a longer lifespan than one that's been in use for sometime. Generally speaking new cars are safer than old cars.  

Con. If you buy a new car, just because it's end of financial year car sales you'll still have to outlay more than for a second-hand car. 

Consider ANCAP safety ratings

There’s one benefit to buying a car from end of financial year car sales that should be lit in neon lights. That’s the ANCAP safety ratings. Although you’ll be able to check the safety ratings on runout models the new models that are being released won’t yet be assessed.

That means they might have flaws or faults. Who knows, they could even be recalled. If you’re someone who likes the phrase ‘tried and tested’ then a runout model could be your perfect go-to.

ANCAP completes a series of safety tests to rate vehicle safety across four main categories. These are adult occupant protection (driver and passenger seat), child occupant protection (backseat), road user (pedestrians and cyclists) and safety assist. In fact, new ANCAP safety ratings just got even better.

Pros and cons

Pro. Knowing the safety ratings for runout models means you know what you're getting. 

Con. Although the new model hasn't been tested yet it may in fact turn out to be a safer vehicle. 

Lookout for end of financial year car sales bonuses

Often, end of financial year car sales come with added perks at no extra cost. These might include a range of on-road costs and accessories you’d normally pay extra for. Over the course of paying off your car, having these add-ons can be a huge saving.

Here are some examples of end of financial year car sales bonuses to keep an eye out for:

• capped price servicing period
• compulsory third party insurance or green slip
• extended warranty
• registration costs
• stamp duty

Of course, these are just a few possible options. When it comes to accessories, you know what you want and need and can be on the lookout for added accessories. Read more on whether EOFY car sales are worth it.

Pros and cons

Pro. You could not only save on the price of a new car but save on costs you'd have to outlay for later on too. 

Con. You could be persuaded to buy a car just because of bonus options so be sure it's the vehicle you want before signing the dotted line.  

Award winning car insurance

Whether you get a runout model or wait for the newest one to reach the showroom, having comprehensive car insurance is a win-win. It may cost a little from your pocket over the year but it could help you cover enormous car-related costs along the way.

For example, damage from Australian storms and fire to your vehicle. Or vandalism or theft. There’s also the costs of being involved in an accident, which could otherwise bite off a corner of your life savings or devour them completely.

In each of these situations your insurance cover helps protect you financially, whether for repairs or replacement. With PD’s three award winning car insurance plans, you can choose between different levels of cover. That means you can choose the best option to suit your pocket, your car and your driving lifestyle.

Click below to get a quote today.