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Why EOFY Sales Are Popular in WA
Dealerships are looking to clear stock before the new financial year. This is especially true for models being replaced by updated versions. For buyers, this can mean discounts, extras, and sometimes lower advertised finance rates. But while the marketing looks attractive, the fine print can hide the real costs.
Common EOFY Car Finance Traps
1. Low Interest Rate Offers with Hidden Fees
Some dealerships promote “1% finance” or other very low rates. These often come with extra fees, higher vehicle prices, or balloon payments that make the total cost much higher than expected.
2. Balloon or Residual Payments
Balloon payments reduce your monthly repayments but leave you with a large lump sum at the end. This can be risky if you cannot refinance or sell the vehicle when the time comes.
3. Limited Stock Pressure
Dealers may push you to sign quickly by saying “only one left” or “offer ends tomorrow.” While EOFY deals do run for a limited time, it is still important to compare finance options before committing.
4. Bundled Extras
Free servicing, insurance, or accessories are often included in EOFY deals. While these can add value, they are sometimes used to distract from higher finance costs.
How to Spot a Genuine Saving
- Compare the drive-away price with similar vehicles outside of EOFY promotions. A true discount should reduce the cost, not just repackage it.
- Look at the total loan cost rather than just the monthly repayment. This shows the real price of the car once interest and fees are included.
- Check the balloon structure if one is included. Decide if you are comfortable making a large payment at the end of the loan.
- Get pre-approval before shopping. This gives you a benchmark rate so you can see if the dealer finance really stacks up.
Why Use a Broker During EOFY Sales
A finance broker can compare multiple lenders instead of locking you into the dealership’s preferred option. This means:
- Access to a wider range of car loans and green car loans
- Flexible structures that work with your budget
- Independent advice without sales pressure
At Hanna Lending Services, we work with Perth buyers every EOFY to make sure the “deal” is truly a saving, not a trap.
Final Word
End of Financial Year car sales can be a smart way to get into a new vehicle, but only if you take the time to understand the finance structure. The sticker price is only part of the story. Genuine savings come from comparing the total cost, not just the headline offer.
Thinking about buying a car during EOFY sales? Speak with Hanna Lending Services first. We will guide you through the fine print and make sure your car finance is set up for success.
