DEAL OR NO DEAL
End-of-year bargains are tough to find in the current new car market
It’s about now we’re usually bombarded with ads telling us how to save thousands on a new car by buying last year’s model. The so-called plate clearances – where savvy buyers can snap up a car from December for a lot less than one from January purely because it received its compliance plate in the previous year – have been a staple of the industry for decades. The car may be no different to the one built weeks later, but that date can make a big difference to its appeal.
The hard sell can be intense as manufacturers look to clear stock that is usually worth less than it was weeks earlier.
Not so in 2022. A shortage of stock across the industry means many brands have people queuing to own a new car. It’s also flowed through to the used car market where prices have bulged as some look at near-new models rather than waiting in line.
When people are fighting over limited stock there’s little need to sharpen the pencil.
Hyundai’s “latest offers” page on its website is indicative of the issue. The most affordable i30 with an auto transmission is $27,490, with a disclaimer stating: “there are currently no bonus offers available for this variant”. Or any other variant, apparently. It appears Hyundais have never been so expensive.
Mazda’s “price and events” section of its website lists cars at the full retail price and Subaru has some modest finance offers but no screaming headlines of how you’ll pocket thousands by diving in now.
Sometimes the message includes headline numbers and red writing to at least give the impression you’re looking at a pretty special deal, but dig deeper and there’s often more marketing fluff than genuine savings.
Fast growing Chinese brand MG is throwing in a bottle of Barossa plonk and a metallic paint upgrade. It’s among the more generous deals from a hot selling brand. But its deals are in some instances more expensive than what was available 12 months earlier.
Kia has some mildly warm deals on some models – a couple of grand off on specific variants - although as is typical the messaging is around pricing rather than nabbing a bargain on last year’s models.
Kia Australia chief operating office Damien
Meredith says it comes down to a lack of stock.
“Demand is far higher than supply so there’s no need for dealers and manufacturers to give away money,” he says of what he describes as a changing retail environment that could represent “the new normal”. There are still 2021 models around in dealer stock with many advertising immediate delivery. The difference is very few have sharp deals on them.
Neville Crichton’s Ateco Group is the importer of various brands including Chinese maker LDV. He says the brand could be selling much more with more supply. “We have in excess of 12,000 back orders waiting on vehicles out of China,” says Crichton.
Top seller Toyota is focusing its sales efforts on in-house finance rates, albeit with a disclaimer at the top of its “current offers” page on its website, which warns: “global demand currently exceeds supply so we are sorry that delivery will take longer than usual”.
It’s a big change from a few years ago. In March 2019 – three months after the new year - Toyota was still trying to offload 2018 versions of its Corolla. Sedan versions of the Ascent with an auto transmission were advertised for $23,490 drive-away, upwards of $4000 off the regular retail price. The most affordable Corolla sedan today is $28,979 for the Ascent Sport and the only deal is a vaguely competitive 3.9 percent finance offer. There are nuggets of a bargain, although it’s usually limited to certain models and is often a modest saving.
A Ford Ranger XLT double cab pickup is almost $6500 off, at $58,990. But opt for the cab-chassis tray and it’s full price, an indication of an excess of stock on only one specific model.
The Hyundai Staria Load van will save ABN holders $750.
Hunt for a BMW 320i and you should save a few grand, although it’s offset by price rises of more than 10 percent in recent years.
With few deals on the table, unless you’re desperate for a new car, there’s unlikely to be a financial penalty in waiting a few weeks for a 2022 model versus buying a 2021 model now.
At the very least you’ll have a car that could be worth more when it comes time to trade it in – at which time some bargains could be back on the table.