Capitalise on Machinery and Equipment EOFY Sales – Understanding Discount Offers.

Machinery and equipment EOFY sales can take the form of price cuts, percentage off, cash back, finance offers, free extras, clearances and run-out sales. All can present great opportunities to purchase assets at lower prices, essentially. But understanding what is involved in some offers can be confusing. Operators may lose time securing limited stock units while working through the details of the deal on offer.

To simplify the process and enable operators to capitalise on the best deals available, we clarify the types of deals and discounts typically available during sale events.

Equipment EOFY Sales – Discount Pricing

Discounted pricing is the simplest type of sale technique for buyers to understand. The advertised price is cut by a set dollar amount or by a percentage. Discounts may be offered directly from dealers or from manufacturers.

What to watch for with discounted pricing sales is the machines that the price cut applies to.

• Is it the specific model or variant that you need for your business?
• What is and is not included in the discounted price?
• Are there extra costs to prepare the unit for delivery?
• Are there any terms and conditions?
• If so, is your business eligible?

If the offer applies only to selected models, possibly limited quantities, you may need to be ready to act quickly. Arrange your financing beforehand and be confident to commit to the purchase immediately.

Cash Back Equipment EOFY Sales

Cash backs can be widely used and popular with manufacturers and dealers but can be a more complicated option for buyers than a straight price cut. A cash back is a form of offering a discount, but the responsibility is with the buyer to claim the rebate. Usually, the units will be sold at dealer level and the cash back redeemed through the manufacturer. Amounts can present attractive discounts and will vary.

Guidance offered by the ACCC with cash backs includes finding out what buyers have to do to redeem their money and how long the process takes. Also check if the time required to redeem the cash back has an expiry date.

Operators planning to purchase machines in a cash back sale will need to finance the full purchase price, not the price less the cash back. When working out repayment estimates using our Equipment Finance Calculator, ensure you include the full price as the loan required.

Run-Out Model Equipment EOFY Sales

Clearances and run-out sale events are used by both machinery brands and individual dealers at various times through the year. When the brand is launching new models, dealerships need to clear their inventory and space to make way for the arrival of the new shipment. Hence, they clear stock of current or older models. Run-out sales may also refer to models that are being cut from the range.

These events are often exceptional opportunities to acquire recent year model machines with a price cut. Before rushing to the local dealership, check which machines are being cleared. Ensure that this is the right unit for your operation. The clearance may be on highly optioned variants which you don’t really need. Even with a price cut, other variants may present a cheaper buy and do the job for you. Check dealerships for stock as clearances will include limited units. Have your finance locked in so you can secure your machinery.

Finance Deals With Equipment EOFY Sales

An ever-increasing sale technique is to offer what appears as cheap financing, with very low rates. This is the type of sale offer that operators really need to scrutinise closely before committing.

Does the offer include your choice of credit facility – Lease, Chattel Mortgage, Rent-to-Own or CHP? Is the advertised rate for a full fixed term? If the rate is only for a set period, what is the rate for the remainder of the term? Does the offer include the opportunity to negotiate terms and balloons to suit your business cash flow? Are all business operators eligible? Do you have your choice of lender? If you’re a sole trader, new or small business is there a Low Doc option in the offer?

To be confident that you are making the financing decision that is right for you, have a no obligation discussion with one of our brokers. We will source your lowest fixed rate loan from our large lender base, negotiating terms and balloons to suit your business and best meet your preferences. Use the calculator to see how competitive we are with fixed rates and fixed terms of up to 84 months.

End of financial year is prime sale time across most sectors. Great buying opportunities can be available, but operators should be on alert to ensure they know the deal they are getting. Our brokers are available to support you with quick quotes on the lowest possible financing, fast approval and prompt settlement.

To be confident when approaching equipment EOFY sales, speak with Jade Equipment Finance 1300 000 003 to secure pre-approved financing.

DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.