Although you can purchase a new car any time of the year, there are certain times, like the end of the month or the end of the financial year, when you might be able to get a better deal on your new ride.
So when is the best time to buy a car in Australia and why are specific periods better than others?
Here is everything you need to know.
5 Best Times of the Year to Buy a Car in Australia
The end of the month
Some car manufacturers offer monthly or quarterly bonuses for dealers who reach a specific sales target. So if you come across a dealer who is one or two cars away from hitting the monthly quota, you will have a lot of wiggle room on the price and could negotiate a great bargain.
The end of the financial year
Like other businesses, most car dealerships offer End Of Financial Year Sales in an effort to give their figures a boost before the tax year ends on 30 June. These discounts can range from special offers on most makes and models to free add-ons such as longer warranties, alloy wheels or other accessories.
The end of the financial year is also a great time for getting a novated lease as business buyers can claim tax deductions on the purchase. EOFY sales offer some of the biggest discounts on the Australian car market so it is no surprise that monthly car sales volumes go up in June. This also means that you will be competing with other buyers, so it’s good to have a backup plan in case you are outbid on your chosen vehicle.
The end of the year
The end of the calendar year is widely considered the best time to buy a car in Australia. This is the time when most dealers want to clear out models from the current year and make room for new arrivals, making salesmen particularly motivated to offer deals and discounts on cars with the previous year’s build plate.
What’s more, many of them are also trying to hit annual quotas and end the year with a bang—another reason why December might be the best month of the year to buy discounted vehicles.
Much like EOFY sales, you could also be in for some extra perks on top of discounts, including deferred payment, cashback offers and various add-ons for free.
Read More: What Is a Car Finance with Balloon Payment
The New Year
The end-of-the-year sale usually stretches into the early-year plate clearance sale—another great time to get a reduced price on cars in Australia.
However, to take advantage of this opportunity you need to find a seller with enough left of last year’s stock to offer a deal as most will try to clear the remaining models from the previous year by the end of December.
There are some downsides to buying a car with the previous year’s build plate as well, the major one being that the vehicle loses some of its market value when you want to resell it. But if you intend to keep the car for more than four years, resale value is not that big of an issue and there are no obstacles to purchasing a vehicle plated for the previous year.
Before a new model is released
The release of the improved version is a perfect opportunity to get a bargain price on the old one.
This will require some digging on your part, though, as you will need to find out if the model is due for a minor upgrade or a major overhaul. In general, cars that have been on the market for three to four years are scheduled for a facelift, whereas buyers should expect an all-new model for vehicles that have been around for six to seven years.
You will also need to research when the new upgrade is being released so you can get the best deal possible on the older version. Read up on the latest car news or look through the manufacturer’s website—they are likely to have some announcements regarding new models.
That said, the new model could come with significant updates that could make the current product harder to sell down the line. It could also introduce better features but at a slight increase in the price. In this case, the new and improved version might be a better deal than buying an outdated model.
So is it a good time to buy a car when a model is about to become outdated? Yes, but you would get a less favourable discount than with end-of-the-year sales.
Further reading: What is a secured car loan?
How to Buy a New Car in Australia: Some Useful Tips
- Go car shopping on Mondays. According to reports from TrueCar, Monday is the best day to buy a car in Australia, with an average savings of 8.10% of the car’s MSRP. The worst deal you can get is on Sundays and Saturdays—car dealerships are very busy on weekends so you have more competition. Plus you won’t get the same level of attention from the dealer.
- If you are after a convertible, you can get discounts in winter when dealerships want to clear stock. On the contrary, if you are interested in a four-wheel drive, you should contact your broker in summer, when their sales are slow.
- Make sure you are not missing out on certain features included in the standard offering, such as length of warranty or accessories. Just because you are getting a discount doesn’t mean you need to get less for your money.
- Negotiate. Dealers will be highly motivated to sell, especially when they need to meet monthly or annual targets, but it never hurts to haggle and get an even better price or maybe some discounted or free add-ons.
- Have all your finances ready. If you are taking out a car loan, make sure you are approved before you start viewing models.
- Get informed. Chances of getting a good deal are next to nil if you go into the showroom without any previous knowledge about the make and model of the car you want to buy.
- Shop around. You might find a better deal from another dealer so make sure you explore all options available to you.
When Is the Best Time of Year to Buy a Used Car in Australia?
Those on the hunt for a cheap used car can keep an eye on online ads and snap up the first opportunity they see.
You could also try old models that have been traded in for an upgrade (usually around the time a new model is released) or look at vehicles that have been damaged by hail storms or other natural disasters. Steer clear of flood-damaged cars as these are uninsurable.
Finally, you could try your luck at online auctions, although this comes with several risks, especially for first-time buyers.
In reality, though, there is no best time to buy a used car. It all depends on how quickly you take advantage of an opportunity once it presents itself.
Bottom Line: When Is the Best Time to Buy a Car?
Making the most of the end-of-year sales or the release of a new model to get a discounted price on a car is well worth the wait—this is when dealers are more than motivated to sell and slash prices to meet sales targets or clear last year’s stock.
However, the car you buy needs to be functional, safe and reliable, so do not compromise on these aspects just to get a cheaper deal. Do your research and walk into the showroom knowledgeable and informed about the model you are interested in. This level of confidence will also help you negotiate a better price.
FAQs:
1. What month is the best time to buy a car in Australia?
December is the best month to buy a car. Dealers are clearing our last year’s stock as well as trying to end the year with better figures leading to lower prices and free add-ons or extended warranties.
2. Will car prices drop in 2022 in Australia?
Used car prices have remained high throughout the year—in the June quarter prices went up by 7.5%. However, as supply chain disruptions are easing, new cars will become available on the market again, leading to used car prices dropping by 11% in 2023, Moody’s Analytics predicts.
3. What is the best holiday to buy a car?
Black Friday is emerging as a good time to buy anything from cheap mattresses to electronics, and even cars. Many dealerships now offer discounts around Black Friday/Cyber Monday, so if you are in the market for a new vehicle, this is a good time to buy one.
4. When is the best time to buy a car in Australia in 2022?
It depends on whether you are buying a new or used car. December is your best chance of getting a good deal on a new car or even early January. If you are interested in a second-hand vehicle, it might be a good idea to wait for used car prices to go down from an unprecedented high, which experts estimate will happen sometime in 2023.
