Buying a Car at the End Of Financial Year Car Sales
The financial year is about to end. Tax returns and write-offs aside, it is also a season of car sales and one of the best times to buy a car in Australia.
During the end of the financial year, which falls in June, car dealers are eager to close deals to hit their annual sales targets. Tax deduction for vehicle purchases also awaits small and medium-sized business owners.
If you’ve been holding out on purchasing a truck or a ute, now is the best time to do so.
Great Car Bargains
Driven by crucial sales quotas that need to be met, salespeople and car dealers will go the extra mile to close a deal with buyers. It’s their last chance to hit yearly targets and rack up sales before the new financial year begins. Some would even contact the wholesaler to further reduce the price of the car to make it even more affordable for retail customers.
The end of the financial year is also the traditional car sales season. The sales volumes are high during this period because of competition between car brands and financial services companies. Thus, many vehicles are available at great discounts and with many perks, like free car accessories, extended car warranty, roadside assistance and insurance.
If you’re a small business owner, buying a new truck or utility vehicle during the end of the financial year entitles you to an instant asset tax write-off.
When you buy a truck or utility vehicle before the financial year ends, you can claim a deduction of up to $30,000 after filing your tax return no later than June 30.
While you can find many cars at a heavily discounted price at the end of the financial year, the car that you’re buying is most likely from the previous model year. The vehicle may not retain its market value when it comes time to sell. Also, the car’s ‘old’ number plates will make it seem older than it really is so it will depreciate faster.
However, if you intend to keep the car for years and are not really particular about its resale value, buying a vehicle 'plated' for the previous year is not an issue.
Remember these few bits of advice if you want to take advantage of the great car deals at the end of the financial year:
- Do online research before visiting any car dealership. This will give you an idea of which particular manufacturers are offering discounts on certain models. You can also compare car deals and choose which one suits your needs best before deciding to buy any vehicle.
- Discuss with your car dealer about the terms and conditions of the sale. Before jumping on a great car deal, it’s important to know what you’re getting. Aside from the bargain details, have a clear idea of the car’s features, fuel efficiency and maintenances needs.
- Buy the previous version of the new models during its last week in the showroom. Dealers are likely to offer you a good deal in order to move out the old stock. This works for you if you’re not that particular about the car’s resale value. Even though the older model is roughly the same age as the new one, it will depreciate faster.
At Positive Lending Solutions, we can find a car loan that suits your finances from over 25 lending partners in Australia. To estimate how much you can afford to spend on a car, use this car loan calculator. To talk to one of our car loan specialists, call 1300 722 210.