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What are the January Runout Sales and is it a good time to buy a vehicle

By January 11, 2018No Comments

VIEW OUR JANUARY RUNOUT DEALS

It’s January. Christmas has been run, done and won and the wonderful holiday season is now over for another year.

 

Every time you turn on the TV or the radio there is someone rabbling on about their HUGE run out deal on 17 plated cars and their Factory Bonus is that big that it will never be repeated. So you, as the everyday consumer, might ask if this is a great time to purchase that new vehicle or is it better to wait. Well, depending on your situation, it may be a great time to buy if you fit the requirements. Below are few ideas to take into consideration.

 

What are run out sales?

 

Run out sales are what motor dealers use to move out last year’s stock. In essence, they are the same as any retailer.  Aging stock is a hindrance on the bottom line and turnover is key. The more turn over, the better chance of profit, just like in any sales based business. It’s the same way that clothing stores sell last season clothes at a discount at the end of the season to move it on e.g. a jumper will normally be 50+% off in summer. A discount needs to be offered to persuade the purchaser to take something that is older and has not sold.

 

When is the best time to buy?

 

The earlier the better. Like most things in life, the bargains go early and the more desirable models will move quickly. You’ll find many of the major popular Japanese brands will time their stock allocation so that they hold very few cars over this time period and therefore have to discount less. What that means for you as the consumer is it’s generally best to get in early. No one really wants a purple Mazda 2 with beige interior anyway! The best models will be sold out quickly in the first few days and by the end of the month it will be the less compelling models left at the dealership e.g. unpopular colours, incorrect transmissions for vehicle class, and cars with obscure factory options. As a rule of thumb, the more obscure the car selection, the bigger the discount. However, remember that if it took a big discount to sell the car in the beginning, it’s going to be harder to sell when it goes back on the market.

 

Things to keep in mind

 

How long are you going to hold on to this car? It might be worthwhile hanging on until later in the year when all the “fresh” 18 plates arrive if you turn over your cars on a regular basis e.g. every 24-36 months. If you prefer to keep your cars long term, it’s a great time to buy if you are sensible and think about what you are doing and don’t get swept up in the hype from the dealer.

If you are a novice at car buying, it’s sometimes best to enlist an expert, and I am not talking about Uncle Barry who reckons he got a great deal. Talk to us at SPA or someone else who does this for a living. We are in the market every day and know a good deal or price when we see one, as we have years of data and experience to rely upon. Unlike Uncle Barry, who’s mate said you should be able to get one for this much like he did when he bought his last one two years ago.

 

Things to avoid

 

As mentioned before, there are few things to really avoid. Over inflated discounts is one. The other is 0% or 1% finance offers. If it requires this sort of deal to sell the car there is generally a major problem. NO ONE WANTS ONE! It seems attractive on the outside but paying full retail price for sub vented finance offers will come back to haunt you in the long run. Car dealers aren’t offering this deal to be the kind caring souls that they are. They are doing it to sell stock that no one wants in the first place. An example of this is Toyota Camry or quite a few of the various French brands in the Australian market place.

 

Quite simply, popular cars aren’t discounted heavily because there is huge demand for both new and used. Cars that have “special” finance offers from manufacturers are normally impossible to sell second hand or are greatly reduced in value due to lack of demand.

 

The words of advice that I can give to you as a seasoned professional is pick up the phone and get an expert to do it. We don’t charge a fee for the service and can put a fantastic package together so that you can continue to save long after you leave the show room and help reduce the cost each week with great discounts on fuel and servicing along with all the benefits that pre-tax savings and  GST discounts.

VIEW OUR JANUARY RUNOUT DEALS