One of the easiest ways to save money on your car purchase is by buying at the right time. But when is that exactly? In this article, we detail the best times to buy a car in Australia.
Before the End of Financial Year (EOFY)
This is the best time to buy a new car if you want to get the best deal possible. The end of the financial year is on the 30th of June. Usually, car dealerships will hold an EOFY sale in the weeks leading up to the end of the financial year to help boost their profits. During this period dealerships and salespeople are trying to meet their yearly or quarterly quotas and targets. This means you’ll typically find bigger discounts and more freebies when you buy a car.
Pros of buying a car during EOFY
Buying a car during EOFY has heaps of advantages for buyers. Car dealerships typically offer their highest discount rates during EOFY. To help close the deal as quickly as possible, salespeople are more likely to offer complimentary items, services, extended warranties, and the like. This could save you hundreds of dollars' worth of add-ons.
In addition, you’ll likely have much more leverage when you’re at the negotiating table because sellers want to move their old stock out before EOFY to make room for newer and more profitable models. You’ll also have more negotiating power during this time compared to other times of the year.
Cons of buying a car during EOFY
Because dealerships hold their biggest sale during EOFY, you may see a lot more competition. Other buyers will want to capitalise on the massively reduced rates and complimentary items as well. Be prepared to outbid other buyers for a car you really want. It's also possible to lose out to another buyer. Make sure you have a second choice in case your original one falls through.
Just before a new model is released
This may take a bit of research on your part, but it can help you save a lot. When a new model of the car is released (or an announcement that it will be released soon), car dealerships are keen on clearing out the old model to make room for the new one.
Pros of buying a car before a new model release
You can get the soon-to-be-dated car models for a really good bargain if you coordinate your purchase during a model run-out period.As demand for the newer model increases, the dealership will likely be more eager to sell the old ones. This can put you at a great advantage when it comes time to negotiate.
Cons of buying a car before a new model release
You have to keep abreast with the latest car news, which might be a little too much work for some. Another drawback is that older models aren’t updated with the latest features.
Before the end of the year
The end of the year is one of the best times to buy a car because dealerships want to move their stock of soon-to-be last year’s models while they’re still current. From a dealership perspective, a car with last year’s build plate on it is much harder to sell.
Pros of buying a car before the end of the calendar year
Similar to EOFY, dealers are really motivated to move their stock out so buyers will be in a better position to negotiate. Also, some dealerships might still be trying to hit their annual sale targets making them eagerto close as many deals as possible. You could get additional perks on top of the already discounted car price.
Cons of buying a car before the end of the calendar year
Like buying before the release of a new model, when you buy at the end of the year, you’re not going to have the latest car with the most updated features. For example, if you buy a European, South Korean, or Japanese model in December, the car may have rolled off the production line sometime in September or earlier.
At the start of the year
The end of year sales may extend at the start of the year. Expect to see clearance sales pop up at car dealerships during January. The cars on sale during this time are usually last year’s models that weren’t sold in the previous year.
Pros of buying a car at the start of the year
You might get a higher discount for last year’s models (or even older) because these cars will become less appealing to a majority of buyers by mid-year as newer models come out. Like with other times, you’ll be in a better position to negotiate.
Cons of buying a car at the start of the year
You may not have a ton of cars to choose from. Most discounted models are the older ones which could be extremely dated. Always ask the seller when the car was built so you know exactly how long this vehicle has been on the market. The older the car is, the more it depreciates in value.
Every end of the month
More often than not, dealerships hold monthly sales to reach their target volume of sales at the end of every month. Some manufacturers also offer dealerships bonuses if they reach a certain quota.
Pros of buying a car at the end of the month
This is great if you’re already planning on buying a car soon. You won’t have to wait until EOFY or the end of the year to get discounts on your dream car.
Cons of buying a car at the end of the month
These monthly sales aren’t as big as the end of the year or EOFY sales and you may not get as many free add-ons. They could also be limited to specific makes and models which won’t give you a ton of options.
When is the right time for you to buy a car?
If you want the best deal possible, the best time to buy a car is during the EOFY period. It has the best discounts of the year and you’ll be in a great position to negotiate the price or get freebies. However, that doesn’t mean you shouldn’t buy a car any other time. The listed options above are also a good time to buy a car so you can get the best deal. It all depends on what you need and what your preferences are.
Finance your car purchase any time with the best car loan
Before you think about the best time to buy a car, you need to make sure you have your finances in order. Getting a good bargain on your car purchase is only half the battle. You need to get a good deal on your car loan too.
At carloans.com.au, we can help you find low rate car loans that suits your needs perfectly. Get in touch with us today and let our expert team of brokers help you find the best car loan for you. Or you can get a free quote online and we’ll contact you as soon as possible.