Buying a Car at the End of the Financial Year

image for Buying a Car at the End of the Financial Year It seems like an absolute no-brainer that if you’re spending a huge amount of money on your next vehicle, you want everything in your favour when you go to make that purchase.

This means purchasing the right vehicle for your needs at the right price, but did you know that timing the market and waiting for a certain time of year, like the end of the financial year, can potentially save you thousands on your purchase? 

Being patient and waiting until the end of the financial year (EOFY) can have huge benefits for those looking to secure a discount on their next vehicle, and with the help of our guide, you can leverage this, too.

We’ll focus most of our attention on purchasing a car at the turn of the financial year, but also break down a few lesser-known times of the year that you can grab your dream car at a cut-price cost. 

Why Is Buying a New Car At the End of the Financial Year (EOFY) Cheaper? 

The end of the financial year creates somewhat of a perfect storm within the automotive industry that typically results in attractive buying propositions for those looking for a new vehicle. For manufacturers, the turning of a new financial year means that it’s time to effectively clear out the stock that they have hanging around throughout their dealership network. This is for a combination of tax reasons, as well as to make way for new model-year (MY) arrivals. 

The result of this need to move stock on a massive scale is that, in most cases, dealerships are incentivised by the manufacturer to quite simply clear out as much stock as they can. This also works well for business buyers, who are looking to take advantage of tax incentives soon after the purchase. 

The correlation between the timing of the end of financial year and outright sale numbers is clear to be seen; with July representing by far the most productive month of the year for new vehicle sales, driven by end of financial year deals.

The end of the financial year can offer buyers discounts ranging from anywhere between 5-20%, depending on the make and model, so it’s well-worth your time checking out any potential deals as July approaches. 

With all this in mind, it’s clear to see that the perfect storm of the changing of tax years, necessities to move existing stock and the business sector using tax advantages to secure their vehicle, buying a new car at the end of the financial year can offer far cheaper prices than other months in the year. 

The Cost Benefits of Purchasing a New Car at the End of the Financial Year 

As we’ve discovered, with the end of the financial year approaching, car dealerships and wholesalers alike are under considerable pressure to move stock as quickly as possible. This translates to wide scale advertising campaigns from manufacturers marketing their EOFY deals for consumers, and potential savings equating to thousands of dollars for you, personally. 

One of the best ways to secure yourself a great deal during an end of financial year run-out is to check which manufacturers are offering plate clearance deals, specifically for vehicles released in the previous year that the dealership needs to get off their lot.

Come sale-time, these plate clearances offer buyers the greatest savings, because they’re less desirable than the new stock a dealership will be taking delivery of. 

Should I Wait Until the End of the Financial Year to Purchase my Next Car? 

If you’re in a position that awards you the luxury of time, exercising patience is undoubtedly one of the best ways to get your dream car at the best possible price.

Whether this is a case of waiting for the end of the financial year, or simply being patient until customer demand for that specific model drops, a new generation replacement arrives or dealership prices drop, remains dependent on your individual circumstances. 

As a general rule, though, waiting until the end of the financial year (EOFY) deals commence some time in April, stretching out until the turn of the financial year at the start of July can result in some significant savings on new car purchases. At the very least, you as the consumer benefit from more generous offerings from dealerships, in the form of extended warranties of additional accessories for that vehicle. 

As we’ve discovered, waiting for any potential end of financial year deals from major manufacturers can result in sticker prices dropping by anywhere between 5-20%, depending on the make, model and model year of that vehicle, with last year’s models receiving the most generous discounts. 

What are the Other Benefits of Buying a New Car at the End of the Financial Year? 

Aside from the potential outright savings you can secure with a purchase during an end of financial year (EOFY) sale, buying a new car during this time can give you significantly more leverage than you might have at other times of the year. This added leverage means that you might be able to secure something like an extended warranty, some added accessories, a capped-price servicing package, roadside assistance package, third-party insurance deals or a set of sparkling new alloy wheels on your vehicle. 

What are Some Other Good Times of the Year to Purchase a New Car? 

Aside from the end of the financial year, there are a number of other times of the year, and even specific times of the month that give new car buyers more leverage during negotiations. With more leverage on your side, you can secure yourself a better price, but what are these times of the year? 

Well, it’s believed that one of the most attractive times of year to purchase your new vehicle is the month of December. This is because dealerships often have both financial year and conventional annual-year targets to meet, and if they haven’t met those numbers yet, they’ll be increasingly under the pump to shift more units and hopefully hit their sales target to receive a bonus from the manufacturer. 

As a result, waiting until the month of December, and more specifically, the end of the month in December can be the single-best time of the year as a new car buyer to secure your dream car at the best price. At the very least, the dealership will likely include bonuses to get the deal finalised, so you stand to benefit in one form or another from a late-December purchase.

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