These sales are driven by a combination of factors, including the need to meet annual targets, make room for next year’s models, and take advantage of increased consumer spending before tax time. Shoppers can expect to see a variety of deals, such as cashback offers, reduced drive-away prices, and added bonuses like free servicing or extended warranties.
However, with so many promotions in the market, it’s essential for buyers to navigate these offers wisely to ensure they’re getting genuine value rather than just an attractive-sounding discount.
In this blog, we’ll map out everything you need to know about the EOFY car sales landscape so you can easily navigate.
Key Strategies to Get the Best Deal
With so many deals available during EOFY car sales, it’s crucial to have a game plan to secure the best possible price. Start by researching the market well in advance – compare prices across multiple dealerships and check online marketplaces to understand the fair value of the car you want.
Timing is also key; while some discounts appear early, the biggest bargains often come closer to June 30 when dealerships are eager to hit their sales targets. Don’t be afraid to negotiate – dealers expect it, and you may be able to score additional perks like free servicing or extended warranties. If a dealer won’t budge on price, consider asking for extras that add value to your purchase. Finally, always read the fine print on any offer, as some promotions may come with hidden fees or conditions that could offset the savings.
EOFY and Business Tax Benefits
For business owners, EOFY car sales present not only an opportunity for great deals but also potential tax advantages*. Depending on your business structure and financial situation, purchasing a vehicle before June 30 could allow you to claim tax deductions, including depreciation, loan interest, and running costs.
The instant asset write-off scheme, can also provide further tax deductions for eligible SMEs. However, tax laws and deductions can be complex, so it’s essential to consult with an accountant or financial adviser to ensure you’re maximising your savings while staying compliant with regulations.
New vs. Used Car Considerations
When navigating EOFY car sales, one key decision is whether to buy a new or used vehicle. New cars come with the latest technology, full manufacturer warranties, and attractive finance options, making them an appealing choice for many buyers. However, they typically depreciate quickly – often losing significant value in the first few years.
On the other hand, used cars, particularly certified pre-owned models, can offer excellent value with lower upfront costs and slower depreciation.
During EOFY sales, dealerships may also discount near-new demo models, which provide the benefits of a new car at a reduced price. Ultimately, the right choice depends on your budget, how long you plan to keep the vehicle, and whether you prioritise cost savings over having the latest features.
Finance and Loan Considerations
When purchasing a car during EOFY sales, finance plays a crucial role in determining the overall cost of your purchase. While dealerships often promote low or zero-interest finance deals, these offers may come with higher vehicle prices or hidden fees.
It’s essential to speak to your broker before car shopping so you have an understanding of your borrowing power – brokers also have access to a large panel of lenders and banks, meaning you get a clear breakdown of your options in terms of interest rates and loan terms. Some brokers even have access to car sourcing brokers, potentially helping you source an even better deal on your new car.
For those considering an electric vehicle (EV), there can be an added financial advantage – the Fringe Benefits Tax (FBT) exemption for eligible zero-emission vehicles. Under this exemption, employers providing eligible EVs to employees for personal use can save thousands of dollars in tax, making salary packaging an EV a highly cost-effective option.
This exemption applies to battery electric vehicles, provided they fall below the luxury car tax (LCT) threshold. When exploring EOFY deals, buyers should factor in these savings, as they can significantly reduce the total cost of ownership.
Final Tips
Navigating the EOFY car sales landscape requires research, strategy, and a keen eye for genuine value.
With dealerships eager to clear stock and meet sales targets, buyers can take advantage of significant discounts and added perks. Whether you’re purchasing for personal or business use, comparing offers or negotiating effectively, understanding finance options can help you secure a suitable deal.
SMEs should also explore potential tax benefits, including the instant asset write-off, while consumers can explore the FBT exemption for eligible electric vehicles.
TL;DR (Too Long; Didn’t Read)
- EOFY is the best time to buy a car due to dealer discounts, incentives, and potential tax benefits.
- Research prices and compare deals across multiple dealerships before committing.
- Negotiate aggressively to maximise savings and ask for extras like free servicing or extended warranties.
- SMEs may be eligible for tax deductions, including the instant asset write-off.
- Eligible EVs can qualify for an FBT exemption, making them a cost-effective option for salary packaging.
