Cars are expensive, and that goes double if you aren’t going for a second-hand vehicle. Making the most of your car loan can be a tricky process: you don’t want to spend too much on a new car, but you don’t want to skimp on necessary features either.
If this conundrum has been putting you off purchasing a vehicle so far, we’ve got some good news. June is one of the best times to buy a new vehicle, and it’s not just because people are tired of catching public transport by the middle of the year. Around this time, you’ll start seeing discounts and incentives galore from your local dealership: Have you ever wondered why?
A flurry of activity
If you’re a business owner who likes to stay on top of their finances, you will be well aware of what June 30 means for Australia. It’s the end of the financial year, when entrepreneurs and corporations all over the country sit down and start filing their taxes.
It can be a period of boredom for many, but for others it’s a flurry of activity as they rush to claim all the tax advantages they can. Among these is the chance to accelerate the depreciation claims of any vehicle up to $20,000: that’s why you’ll see so many businesses with some new wheels around this time of year.
In fact, June last year had the Australian Bureau of Statistics recording a huge 125,850 sales of new motor vehicles. The next largest was March, where there were about 105,000 vehicles sold – quite the difference in sales figures.
You would think that this huge demand would actually count in your disfavour when trying to find a vehicle yourself – less choice, higher prices, fewer reasonable car dealers. However, what you might be forgetting is that car dealerships are businesses too, and many of them have their sales figures tallied at the end of the financial year.
Franchise owners will want to bulk up their turnover and sales volumes, while individual salespeople will be trying hard to meet their targets. As such, you’ll likely find that discounts are larger and haggling is more effective. Drive.com.au, for example, recorded savings from between $3,000 to $4,000 for a large variety of makes and models in June last year. You might also find that they are willing to throw in some petrol vouchers or cover the cost of registration as well!
The end of the financial year is a great time to stop putting off making that new vehicle purchase for fear of spending too much. If you want to find a great deal on a car loan to finance your new purchase, make sure you get in touch with the team at Border Bank!