But why is this? How much could you save? And what tips can you follow to get the best deal possible?
We’ll explore EOFY car sales to help you snag a bargain next time you enter a dealership.
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There are several reasons why the end of the financial year - the weeks leading up to 30 June, before the start of the new financial year - is often the peak time for car bargains. The main reason is that car dealerships and manufacturers want to sell as many cars as possible to maximise sales and profits so their final EOFY results look better.
Car dealerships will each have sales targets to meet, and they’ll want to clear out as much old stock as possible before making way for newer models. This leads to increased competition among dealerships and salespeople, which benefits you, the customer.
New car models are usually introduced to the Australian market around this time, and newer models sell better than old ones, even if they’re only from the year before. Although not always the case, these factors generally lead to a frenzy of reduced prices, favourable terms and other deal sweeteners.
On average, discounts during EOFY car sales in Australia can range from a few hundred dollars to several thousand dollars off the original price of a car. These discounts can be influenced by factors such as the car's age (if it's a previous model year), the dealership's sales targets, and the overall demand.
According to onlineauto.com.au, discounts typically range from 5% to 20% of the listed price, with some going even higher. In addition to price reductions, car dealerships may also offer other incentives and benefits to sweeten the deal, such as cashback offers, free extras, more favourable trade-in terms and more. If you’re buying a car for business purposes, there can also be tax advantages to buying before your tax return is due.
It's important to remember that while the potential for savings is significant, it’s not a guarantee. You’ll still need to do the work to ensure you’re getting a good deal - see our tips section further down for more information.
It’s not just a theory; the numbers back it up. According to new car sales figures from the Federal Chamber of Automotive Industries (FCAI), May and June have historically been much stronger. Let’s look at the last couple of years’ worth of car sales, for example:
Based on the above data, June is comfortably the month with the most new vehicle sales, with 2023’s sales figures smashing the previous year’s by 25%.
EOFY isn’t the only time to buy a car on the cheap. A few other times in Australia can be favourable for wannabe car buyers.
Remember that while these periods may offer valuable buying opportunities, you still need to exercise caution to avoid getting a bad deal.
Towards the end of the calendar year, usually in November and December, car dealerships also strive to meet sales targets and clear out existing stock to make way for the upcoming year's models. This trend is slightly less prolific than at the end of the financial year, but it can still be a great time to snag a bargain.
The beginning of the year, especially January, is another good time to consider buying a car. Many dealerships offer discounts and promotions to start the new year, clear out remaining stock, and attract buyers who may have received juicy holiday bonuses.
In addition to larger annual targets, dealerships and individual salespeople tend to have monthly sales targets. To get their bonuses, they could be more likely to give you a good deal at the end of each month.
Whenever a new model is released (not necessarily at any particular time), dealerships often want to generate interest and sales momentum. As the new models arrive, they might offer special deals on older models to make room for the latest inventory, so keep track of when new car models are arriving at dealerships near you.
Dealerships may run special promotions or sales events during public holidays and long weekends to attract customers and generate sales. Some popular times to watch for include Easter, Anzac Day, and Christmas.
EOFY deals are not a sure thing when buying a car. As with buying a car during any other time of year, you risk wasting money or buying a lemon if you’re not careful.
Using some of the following tips can boost your chances of scoring a good EOFY car deal (and all year round).
Car dealers aren’t everybody’s favourite type of person, and understandably, there’s room to end up worse off when buying a car during EOFY sales.
It's essential to be aware of the potential traps you could face to ensure you make an informed decision.
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