Why the end of the financial year is a great time to buy a car

Tax time – not the most exciting time of year for those of us who aren’t accountants, but it is a good time to consider a major purchase like a car.

With plenty of competition in the market both through private sales and dealerships, there is hardly a bad time of year to buy a car, but the end of the financial year presents several opportunities to save.

Hitting targets
The end of the financial year is especially important to manufacturers, because a slow year of sales can be mitigated by a big push in the final month. You will probably notice plenty of ads around right now for EOFY sales “events”. All the top-selling manufacturers – Toyota, Holden, Ford, VW, Mitsubishi, Mazda and Hyundai all have deals on at the moment. Even the more premium end of the market is getting in on the discounting action with Audi and BWM both offering EOFY discounts.

Some manufacturers estimate that volumes in June are up 30% on the rest of the year, so it’s worth doing your homework and playing the extremely competitive market for a great discount.

Of course, the dealers will be working to clear old stock with these kind of run out deals, so you may not get the precise model you’re after. But if you’re willing to be flexible you can save thousands of dollars on the cost of a new car.

Buyer beware
You should also be aware of the compliance trap when dealers are getting rid of their old stock. The date on a car’s compliance plate might not be the same as the build plate, especially if the car is manufactured overseas. The compliance plate only tells you when the car was approved for sale in Australia, so a car may have a compliance date of May 2017, even though it was built in late 2016. So always check you’re getting what you pay for.

And also beware that any savings you make in getting a good deal in a EOFY deal aren’t absorbed by unnecessary extras and so-called “junk” insurances.

Balancing the books
If you own a business, or even if you are an employee, making a purchase that is work related can be tax deductible.

The Federal Government has extended laws that allow small business to claim an immediate deduction for assets they start to use, procided each depreciable asset costs less than $20,000. This extension is only until June 30, so you’d better get in quickly if a new car for your business is on the agenda.

Michael Higgins is director of HelloCars.

This piece first appeared at Yahoo7.

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