Save in EOFY car sales

If you're itching for a fresh piece of metal in the driveway, car distributors and dealers traditionally clean out their yards as the financial year ends. That means they'll quit cars with discounts they wouldn't normally dream about.

Why? The start of a new financial year regenerates a new business financial budget and allows time to clean out the cobwebs of the past. In some cases the vehicles in the yard may be built in the previous calendar year and everyone wants to pay less for a car that is nominally 12 months old. So that's another saving.

But it's not all about slashing the car's retail price. Some manufacturers with the backing of a finance company have taken the axe to the interest rates on their loans. The savings here can be substantial and likely to beat any bank.

Doing this rather than chopping the car's price also ensures resale value remains high - a bonus when you finish with the car. Others have promised to pay all the on-road costs - that's registration, third-party insurance and stamp duty - which can be a saving of anywhere from $2500 to $8000-plus.

It's not only about what the car maker is publicly chopping of the recommended price - you can haggle a few more thousand dollars out of the deal by bumping up the price of the trade-in.

Don't jump the starter's gun - if you show too much eagerness the dealer knows he doesn't have to cut anything else out of the deal. Adopting a casual attitude to the haggling process may put the dealer on the forward foot. If you're keen, get on the grid now.

Most car makers, distributors and dealers have started their end of financial year (EOFY) rollout of models. Here's a selection of the vehicles you may want at prices you may not have thought possible.

AUDI
The A4 and S4 models (to be replaced in July) and the three-door A1 hatch (a five-door adds to the A1 in July) means a choice for buyers of free on-road costs (saving about $3000-$5000) or a 2.8 per cent comparative loan rate.

CITROEN
Drive away on all C models (except DS) - saving about $4000 - and a C5 Turbo for $32,990 drive away.

FORD
Good deals here and it's not because there's a new model coming anytime soon. Ford - which also has a budget-priced capped service program - is copping all the on-road charges and chopping a few thousand plastic queens of the prices as well.

Have a look at the Fiesta CL hatch petrol manual with Safety Pack - $16,790 drive away; Focus Trend hatch petrol manual $22,890 drive away; and XR6 ute manual at $33,990 drive away and for ABN holders, a five-year/200,000km warranty. 

My favorites are the Territory 2WD TX automatic diesel for $40,990. It's normally $43,240 plus the $5000-plus onroad costs, a saving to you of about $9000. Plus the diesel Territory is a nice ride.

HOLDEN
Drive-away costs have been absorbed across the range but in addition, there are a handful of cut-price specials under the Equipe nametag. Holden has lifted the price of many of its smaller cars and then paid for the on-road costs, so the benefits to the buyer aren't as huge as first thought. I guess that every dollar helps.

For example, the Barina hatch is $15,990 but Holden now quote $16,990 drive away ($2500). So the actual saving is $1500. But it gets better with the Cruze CD (normally $21,990) that's now $21,490 drive away, a total saving of about $3400. Commodore's SV6 is $42,790 but until June 30 is $36,990 including on-road costs, leaving a decent $7300 in your wallet.

The Captiva 7 SX is normally $32,490 but pre-July gets free driveaway and a total saving of $3500. Unfortunately it only applies to the petrol model.

But the hat goes off to the Equipe special edition models in Cruze and Commodore which add three years to the roadside assist, two year extra factory warranty (now five years) and a free service. Depending on the Equipe model, you'll also get free parking sensors, big-diameter alloy wheels, leather or a rear-view camera - plus on-road costs. But you have to pay on-road costs.

HONDA
It's drive-away pricing at Honda. An example is the Accord Euro manual for $29,990 drive-away, saving about $3000. The same deal is on other models until June 30.

ISUZU
The manufacturer has made significant reductions to the price of its D-Max models - up to $4510 in one case - and also absorbed drive-away costs into its range. The savings can be hefty but be aware that the lure is in the water because there's a new model coming.

Examples of the cuts are the SX dual-cab 4WD ute (normally $38,600) that's now $34,990. That's a saving of $3610 on the price and about $3500 in on-road costs, totalling about $7100. The more up-spec LS-U 4WD dual-cab is slashed by $4510 to $37,990 drive away, a total saving of about $8000.

MAZDA
A selection of models come with all drive-away costs included but the savings are minor. The list also doesn't include the new hot-selling CX-5 SUV, but there's some examples of the neat Mazda3 and Mazda6. Mazda has added $2000 to the price of the Mazda3 Maxx Sport hatch (now $26,490) but has included on-road costs ($3000) so the saving to you is only $1000.

The same with the Mazda2 Neo (normally $15,790) which is now $16,490 with on-road costs ($2600) - an actual saving of only $1900. Big-car buyers may be enticed by the seven-seater CX-9 SUV which is normally $44,425 for the front-wheel drive automatic version but is now $45,990 drive away ($5500), saving $3935

MITSUBISHI
Drive away prices abound as Mitsubishi apply the tease across the range. The Lancer, ASX and Outlander have special edition ``Activ'' models that add some extra equipment for no extra cost. The Lancer Activ manual costs $21,888 with metallic paint, 16-inch alloys, a body kit and voice-activated Bluetooth. It's based on the ES Lancer which is normally $21,690. The on-roads are about $3000, so the saving over an ES is about $2800 even without the extra kit. It's a good deal.

There's also a deal on the Pajero Platinum (based on GLX) which comes with a heap of extra stuff - reverse camera, sat-nav, premium audio and big screen, rear airconditioning, auto headlights and wipers and sidesteps - for $58,990. The GLX is usually $55,990. You save $6500 on on-road costs plus get all the fruit. 

Favourite in this bunch is the ASX Activ (it's only available as a front-wheel drive) that gets 17-inch alloy wheels and a body kit, privacy glass, Bluetooth and audio steering wheel controls. The pretty SUV is $30,490 as an automatic, including all drive-away costs.

NISSAN
Cheap finance is Nissan's lure, with 2.7 per cent on Murano, Pathfinder, Micra, Dualis and X-Trail models. All models also come with a reassuring six-year/120,000km capped price service program and three-year 24-hour roadside assist. There's also the Patrol ST ``Simpson Crossing'' 50th Anniversary model that throws in $8500 of extra gear at no extra cost. The Patrol ST is usually $56,990.  My favourite is the Dualis ST automatic front-wheel drive which is $29,990. The 2.7 per cent finance on a $30,000 loan will save you $7936 in interest compared with a bank over a five-year term and monthly repayments are about $535.

RENAULT
Cut-price loans are Renault inducement into its model range. The best is a 1.9 per cent comparison rate for the Megane hatch and Fluence sedan. Banks start opening their doors at about 12 per cent comparison rate for a secured car loan, so Renault's offer is very attractive - if you want a Renault. Other models, including the light commercial vehicles, are 3.9 per cent.  My favourite is the Megane diesel hatch automatic at $27,490. The cut-price finance means a $8569 interest repayment saving on a five-year, $30,000 loan compared with a bank.

SKODA
Get your Czech book out because cheap finance is the way to go. Skoda is offering 2.8 per cent finance on its Yeti and Superb models to make a big improvement in the health of your wallet.

SSANGYONG
The 2011-build Korando range has been chopped by $3000. All the prices quoted for Ssangyong are drive-away, so there's an even bigger saving. An example is the Koranda compact SUV diesel manual which is sliced by $3000 to $24,990 drive away.

SUBARU
Good savings here as Subaru prepares to wheel in the new Forester in January. The best are the Adventure Pack deals which cost you $1000 more for up to $4000 of goodies. Just make sure you really need those goodies. Until July 1, Subaru has its base-model Forester X manual with alloy wheels, fog lights and on-road costs from $31,990, a saving of $3900. The Outback 2.5i manual, usually $37,490, is now $37,990 including on-road costs.

Tribeca 3.6R Premium seven-seater is $54,990 with on-road costs thrown in, saving $4000.  I'd go for the Forester X Adventure Pack for $32,990 which includes fog lights, alloy wheels, carpet mats, cargo tray, an Engel car fridge and a $500 Columbia voucher. The equivalent Outback pack has different kit, including roof attachments and Thule luggage.

SUZUKI
Not much here really, though the drive-away pricing will save a bit. Drive away prices include he baby-car Alto ($12,490 with free sat-nav and Bluetooth), Swift GL auto ($19,690) and Grand Vitara Urban 4WD with alloy wheels ($30,990).

TOYOTA
Go to the Toyota Bank and get a 2.9 per cent comparative interest rate on Corolla Ascent (new model late this year), Yaris YRS sedan (new model early 2013), Yaris YR hatch (no imminent replacement) and RAV4 CV (new model 2013). As an example, the Corolla Ascent costs $20,990. A $25,000 loan over five years at 2.9 per cent means a $448 monthly repayment and total interest bill of $1886. Compared to a 12 per cent bank loan, you'll save $6480 in interest.

VOLKSWAGEN
Again, it's the drive away pricing that may draw you to the showroom. The Jetta sedan, for example, is from $26,490 (same price as normal) but the drive-away inducement saves about $3500. This model has recently been upgraded so no new model around the corner. The Golf 77TSI is unchanged at $21,990 but the on-road costs will save about $3000. There's a new Golf mid to late 2013. All Amarok utes now come with a pre-July 2.8 per cent finance deal.

VOLVO
The Swede is offering rebates on selected models and has expanded its safety equipment - particularly the low-speed, auto-brake system City Safety - over a wider model range. Pick the right insurer and City Safety cars attract an annual premium discount of up to 20 per cent. Cash back is on C30 ($2000), S60 ($3000), XC60 ($3000), XC90 ($4000) and XC70 ($5000).  My favourite is the $3000 of the price of the S60 sedan, bring the excellent T4 model down to $45,990. It has City Safety as standard, so there's the chance of cheap insurance premiums.

Low-cost loans

Scenario 1: Borrow $30,000 at a bank's comparison rate (includes all fees and charges) of 12 per cent. Over five years you would pay $667.33 a month and your total interest bill (alone) for the term would be $10,040. Borrow the same amount over the same term but use Renault's 1.9 per cent comparison rate to buy a Megane hatch and your monthly repayment would be $524 and your total interest bill for the term would be $1471. The bottom line is a whopping $8569 saving.

Scenario 2: Borrow $30,000 at a bank rate of 12 per cent. Over five years you would pay $667.33 a month and your total interest bill (alone) for the term would be $10,040. Borrow the same amount over the same term but use Toyota's 2.9 per cent rate to buy a Corolla and your monthly repayment would be $537 and your total interest bill for the term would be $2264. By going with Toyota's finance you will save $7776 in interest repayments.