Everyone knows end of financial year sales are the best time to score a car deal, right? Well not so fast, because those EOFY deals might not be all that. If you’ve ever felt the ‘buy now, think later’ pressure from a car dealer, just know that it doesn’t have to be that way.
Here's the truth about the psychological tactics some car dealers use during EOFY season – and why you deserve better.
EOFY car sale psychology to keep in mind
The thinking behind EOFY sales is that car dealers will clear out stock and make room before the end of their annual July-to-June accounting period. The idea goes, that buyers can nab better pricing or extra incentives if they purchase before the end of the financial year.
There’s no problem with this in itself; just keep in mind that EOFY car sales can rely on certain strategies and pressures. Here are some of the psychological effects that can lead to a buyer compromising on price, finance conditions or car choice.
1. Creating a sense of urgency
“Don’t miss out! Act now or regret it later!” EOFY sales work because they have a clear deadline, and car dealerships will sometimes make the most of that to motivate buyers. Research shows that the fear of missing out can lead to panic buying. EOFY sales are also about clearing out old stock, so there might be a limited choice of make, model and features included in the offers. Be wary of anyone pressuring you to compromise on what you’ve set out to find.
Car buying tip: Stay clear on what you’re looking for and don’t let anyone pressure you into a sale. Consider buying from a dealership that focuses on competitive pricing year-round, rather than relying on a sense of urgency to make sales.
2. Being vague on the best price
It's easy for a salesperson to insist that they’re giving you the absolute best price during an EOFY sale, but some promotional prices can be vague, incomplete, or outright misleading. It pays to be savvy and look a little closer. Just like that yellow ‘Price Dropped’ sticker at the supermarket, you could actually find that price was inflated in the months prior. The price could even be higher than the next dealer over.
One person who monitors car prices each and every day is Peter Willis, Carma’s Director of Buying. He says it’s handy to go into a car buying experience knowing a car’s general market value so you can spot a genuinely good deal. “While of course kilometres, condition and features can vary, having that ballpark figure in mind can help you spot a fair price.”
Car buying tip: Equip yourself by researching the car you’re looking for. You can look up a vehicle’s make and model at RedBook to get a general guide to its market pricing, and get a feel for what’s available with Carma.
3. Adding ‘special’ offers
Yes, it’s true that EOFY sales can be a source for special offers like longer warranties, better-than-usual finance rates or servicing offers. Just be sure to check that any offers are genuinely in your best interest. For example, a tempting low-interest rate could be offset by high fees and hidden costs. Free accessories might even not be your style, while free or capped-price servicing could lead to upselling opportunities down the track.
Car buying tip: Check the details on any special offers and judge how much true value they’ll bring your way. When it comes to finance offers, always get multiple quotes and check the comparison rate – this will help you assess the complete deal.
4. Deflecting the focus to your priorities
It’s normal to have priorities when buying a car. You might be particularly interested in finding a good finance deal, or be more focused on the extras you’re offered. But some dealers will tap into those priorities at the cost of others to make that EOFY sale. Sensitive on finance? They’ll give you a tempting finance quote. Sensitive on price? They’ll give you a bigger discount. Just make sure the deal works for you on the whole.
Car buying tip: Look for a car dealer that’s clear and upfront about all aspects of the car purchase process. Carma is one such example, where everything is laid on the table clearly, from service history to costs. There are no sales tricks – just good cars at good prices, with full transparency.
So what should you actually look for when buying a car?
Whether you’re buying a used car or a new one, it pays to be aware of the potential traps and tactics that are employed at EOFY. It might be wise to look past that urgency and those limited-time offers, and instead look for:
- The make and model you actually want at competitive market value
- Clear, upfront pricing (as well as clear service histories if you’re buying a used car)
- Finance that will actually give you a good deal with no sneak fees
- A no-pressure purchase experience so you can drive away with full peace of mind.
At Carma, there are no pressure tactics, inflated prices, or fine print – just fair, transparent pricing all year round. You can shop when it suits you, rather than suiting someone else’s sales target. EOFY or not, quality cars and upfront info are always ready when you are.
