Are you looking for a new set of wheels? Before you buy a car, make sure the timing is right. And we’re not talking about personal timing either. The time of year you buy could affect the deal you get.
If you’re not in any rush to buy a new car, consider waiting until the end of the financial year. This period ramps up around May and ends 30 June. During this time, a lot of car dealerships typically hold massive sales that could save you heaps on a new car.
Why does the end of the financial year (EOFY) have such good deals?
Car dealerships and manufacturers are eager to move their existing stock and increase their profit margins before the financial year ends. This leads to dealerships offering buyers more incentives to buy than other times of the year.
Top reasons why you should buy during EOFY
For those who want to get the best deal (and let’s be honest, who doesn’t?), buying a new car at the end of the financial year is the way to go. If you need more convincing, here are a few reasons why you should buy a car during EOFY:
EOFY has the best discounts of the year
Car manufacturers and dealerships reserve their highest discounts in the weeks leading up to EOFY. Compared to other popular sale periods like the start or end of the year, EOFY sales are typically significantly higher. If you’re looking to get the most discounts, buying a car during EOFY is the way to go.
During this time, dealerships are trying to meet end of financial year quotas and targets. Or simply want to boost their revenue as much as they can before the financial year ends. Additionally, car dealerships are also keen to clear out stock so they can make room for newer models which are much more profitable for them in their inventory once the new financial year starts.
You can get more freebies
Car dealerships are trying to move as much stock out as quickly as possible before EOFY. This is why you’ll usually get more complimentary items and services when you buy a car just before the end of the financial year.
Dealerships usually give buyers more incentive so they could close the sale immediately. These incentives could include free services, accessories, or upgrades. You could save hundreds of dollars and get so many freebies just by buying a car at the right time.
To take full advantage of the EOFY sale, buyers should ask for the things they want. There’s no harm in enquiring if you could get a service or a particular accessory for free. In fact, some dealerships will try to sweeten the deal even more by offering extended warranties and upgrades too.
Buyers have more leverage
During EOFY, salespeople are more determined to close as many deals as possible. As said before, they want to meet their end of financial year targets and move stock out so they can bring in more profitable models in the next financial year.
The EOFY period is one of the most hectic times of the year for salespeople. They’re likely determined to sell cars fast and move on to the next deal before the financial year ends.
As a buyer, you have more leverage when it comes to negotiating. You could get a bigger discount that’s even lower than the sale price. Or get more complimentary accessories and services like pre-paid registration, interior upgrades, and the like.
Take advantage of tax incentives
If you’re buying a new car for business purposes, you may be entitled to certain tax benefits when you buy before EOFY. The federal government offers an instant asset tax write-off which lets business buyers and sole traders with ABN to immediately claim a deduction for an asset purchased in the same financial year.
Additionally, those who own a business that uses passenger vehicles can maximise your tax deductions for the financial year by purchasing much-needed cars before the end of financial year. Check the rules and guidelines beforehand to see if you qualify for this tax incentive.
Better resale value
If you buy a car for a massively reduced price compared to its market value, you could easily recoup costs when you sell it. You won’t be as impacted by the car’s depreciation because you bought it at an already discounted price.
Do some research and find out which car models have the best market value and see if you can get a good discount on them during EOFY. Maintaining the car in good working condition will also increase the likelihood of receiving a good price when you eventually sell it.
Get low rate car loans this EOFY
Buy a car on finance this EOFY and get the best car loan possible with carloans.com.au. With the help of our expert team of brokers at carloans.com.au , you can get a cheap car loan quickly and hassle-free. Contact us today or get a quote online—it’s as easy as that!