Every year in June the Australian automotive market shifts into high gear, offering a golden window for consumers eyeing a new set of wheels. In 2024 alone, Australians set a new mid-year record by purchasing 632,412 new vehicles.
Dealerships, eager to clear inventory and meet annual sales targets, roll out enticing offers, including substantial discounts, and attractive perks like free servicing or accessories.
Moreover, for businesses and individuals alike, buying a vehicle before June 30 can offer nice tax advantages, potentially impacting your end-of-year financial position in a good way. With this convergence of dealer incentives and fiscal benefits, the EOFY period stands out as an opportune moment to drive away in a new car.
EOFY is crunch time for car dealerships
By June, dealerships across the country are busy working to clear old stock, hit targets, and make room for next year's models. That means more discounts on outgoing stock, bigger incentives to get cars off the lot, bonus inclusions like rego, servicing, or warranties, and better finance terms if you walk in with pre-approval.
For small business owners? This means they could claim the instant asset write-off. If you're a sole trader, tradie, or small business owner, depending on your turnover and how you use the vehicle, you might be able to claim the $20,000 instant asset write-off.
Here's what the ATO has proposed for FY 2024–25:
The asset (like a work vehicle) must cost less than $20,000 (excluding GST).
You need to use it for income-generating purposes.
It has to be first used or ready to use in the same financial year.
Even if your vehicle costs more than $20,000, you may still be able to claim depreciation through the small business pool. However, remember: tax benefits depend on your situation. It's always best to check in with your accountant for personalised advice.
Not buying for business? Timing still matters.
You don't need an ABN to benefit from EOFY. Many dealerships are more flexible in June, and that can mean lower prices, better trade-in value, and bonus extras bundled in. If your current car holds strong resale value, now could be the time to cash in and lower your loan amount.
State-by-state perks of buying a car during EOFY
While EOFY car deals pop up across Australia, the cost of getting on the road isn't the same in every state or territory. The numbers can shift from rego costs to EV incentives, and it's worth knowing what you're in for. Here's how things compare across the country:
State | Registration Cost Example* | Stamp Duty Concessions or Benefits |
|---|---|---|
NSW | $1,000 (includes CTP, varies by vehicle type) | Some exemptions for EVs and pensioners |
VIC | $900 (varies by weight and region) | Reduced duty on low-emission vehicles |
QLD | $700 - $1,000 (depending on engine size) | Discounts for green cars and first-time registrations |
WA | $700 - $1,200 (includes CTP) | Some relief for EVs and regional drivers |
SA | $800+ (stamp duty and registration combined) | Rebates on EVs and trade-ins |
TAS | $600+ (lowest in Australia) | Low duty threshold for budget vehicles |
ACT | $900+ (based on vehicle type and emissions) | Exemptions for EVs and novated leases |
NT | $800+ (includes insurance levy) | Discounted duty for specific vehicle classes |
What are the 5 reasons EOFY may be a great time to buy a car?
If you’ve been tempted by the thought of driving around in a new car and finally getting rid of your old one, here are the five things you might want to consider.
1. There are great sales offers.
Every year, car manufacturers and dealerships cut prices and offer huge discounts on cars leading up to 30 June. Car dealers usually weigh up the revenue and profit they’ve made over the year against their targets. This way, they can tally the stock they have on hand to work out their sales and sometimes offer thousands in savings on new and demonstrator cars.
Another temptation (alongside the discounts) is the value adds like free on-road costs, upgrades and optional extras like alloy wheels. They can also offer extended warranties which means you could nab a great deal on your next car.
EOFY is a busy time to buy a new car so it’s helpful to know the make and model you’re after and understand what you’re buying before heading to a showroom to get the deal done.
2. You could get a good price on a trade-in.
There’s been a massive demand for second-hand cars with fewer vehicle imports in recent years. For this reason, now could be a good time to secure a great price on your trade-in to go towards your next car.
If you have a car you want to trade in, it may be helpful to have an idea of how much your current car is worth. This can help you prepare to negotiate a good trade-in deal. You can do this with free online valuation tools from drive.com.au or carsales.com.au.
When filling out your details make sure that you know the difference between the build year and model year (for example, the build year could be 2019 for a 2020 model). The dealer will price the trade-in from the build year, which depreciates the older it becomes.
When dealerships provide you a quote to trade-in, make sure this lines up with what you have researched to ensure you’re getting a fair deal. If it doesn’t, it might be worth looking into other routes to sell. Another tip is to make sure any repairs are done prior to inspection and negotiating a deal as this could affect the value of your trade-in price.
3. Low interest rates
While interest rates have started to rise, these increases are coming off the back of historically low rates. This means vehicle finance continues to offer competitive interest rates. So, right now may be the optimal time to consider a car loan to purchase the new car you have been dreaming of.
Vehicle finance is often offered on a fixed interest rate instead of variable interest rates, so you can have peace of mind knowing your loan repayments won’t change during your loan term.
4. You may be able to claim it as a tax write-off.
The government offers instant asset write-off for eligible businesses. This allows small businesses to claim the depreciation amount (the amount of value something is likely to lose over time) of a work-related purchase like a car.
To be fully expensed, vehicles must be able to tow 4 tonnes or more or have passenger capacity of greater than 9 people. Vehicles that do not meet this can expense up to $60,733 for the 2021-2022 income year.
So, if you own a business or use your vehicle for business purposes, EOFY could be a fantastic opportunity for you to purchase a new car as a tax deductible expense. You can check with your accountant what applies to you.
The ‘instant asset write-off’ eligibility criteria and threshold changes over time, so make sure you check these before purchasing a car to understand what your write-off may be.
5. Brokers can find the right deal for you.
If you’re looking to buy a car at the end of the financial year, an Aussie Broker can help you find a fair deal for finance.
When speaking to dealerships, it can help to be wary of the finance solutions they offer. They may not be interested in negotiating the best deal for you and could be limited in what they can offer if they only have access to one financier.
Some dealerships will quote fees and interest base rates instead of the effective rate. Working with an Aussie Broker can take the hassle and complexity out of the process and help you find the right asset finance deal.
Reach out today to review your options.
