Car Buyer Myths
Best Car Deals Are Only During EOFY
Many buyers hold out on purchasing a vehicle until June when they believe dealers will do their best deals.
Truth is, yes it will seem like discounts are larger and more brands are on sale, but the actual fact is the only reason it seems that way is dealers and manufacturers decide to spend more in that month advertising offers. Sales and offers are available all year round and every manufacturer will have something they are pushing.
So no longer do you have to wait until June to purchase a vehicle based on getting a deal. Waiting for a specific period may mean you are restricted on colours and/or spec. Dealers want to get rid of stock before EOFY and so will be less willing to bring in a car that adds to their inventory list rather than decreasing it.
If you do your research you will see that the deals can be done all year round.
I Can Get a Better Price at the Dealership
The internet is the number one source of researching what car to buy. Due to this people believe that if they see a price on the internet they are able to get a better price if they negotiate face to face with the dealer. Unfortunately this is not always the case. Dealers use the internet not only to advertise cars or the dealership but also to get rid of excess stock or specs that may not be as popular, so the price they put on the car online, print or anywhere else is the final price to clear. They will even sometimes be at a loss or no profit because it is costing the dealer more money to keep it there another month rather than get rid of it.
This does not mean you should not try and negotiate a better deal but sometimes when the dealer says ‘I cannot move another cent on it’ they actually mean it.
Dealer Finance is Always More Expensive
People assume going thru there bank or external lender gives you an ability to get a lower interest rate. Dealerships use the same lenders as you and I to offer finance to their clients. They also have multiple finance companies they can use or play off each other. For instance the car I bought most recently was bought and financed thru a dealer and the financier is St George Bank, with whom I have an account with.
So there is no reason that you cannot get the same finance rates as you would going direct to the bank. The difference is that dealerships will initially not offer their lowest rate due to the commissions they make from higher rates. But if you negotiate on your finance rate as you would the price of the car you can usually get in on par with rates outside a dealership.
Additionally with manufactures getting in on the act and promoting finance deals like 2.9% and even 0% as Toyota has on their Camry currently, you will be getting a much better finance deal thru dealers than you would any other lending institution.
You Get a Better Price if you Pay Cash
A large part of the dealer’s income comes from the back end profit such as finance. So in actual fact if you say you are financing thru the dealership you are more likely to get a discount on the price of the vehicle. If a dealer hears ‘cash’ they will try and make the most amount of profit out of the front end, being the price of the car knowing they will not have an opportunity at the back end.
Your negotiating position is far improved if you are buying and financing the car from the same dealership.
50 Newcorner St.
West Perth WA
(08) 9423 7711
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