When should you buy a new car?

The most popular time in Australia to buy a car is believed to be at the end of the financial year, however, there are other times to consider, as you may get a better deal.

While many ponder what kind of car they’ll get, other factors that need to be considered include associated costs, additional features, and when the right time to buy a car will be.

Most of us will try to get the timing right when going into the dealership to get the most savings and bang for our buck.

While the end of the financial year is typically the most popular time to purchase a car, there are other times during the year you should consider if you’re ready to start car hunting.

End of the financial year

In Australia, the 30^th of June marks the end of the financial year (EOFY) and is considered a great time to purchase a car.

During this time, manufacturers and dealerships will typically discount prices, offer competitive pricing, and might throw in free car servicing to sweeten the deal and hopefully hit their end-of-year targets to increase their profits.

You can typically negotiate with the salesperson during this time and potentially get roadside assistance, free accessories, or an extended warranty. A lot of business owners purchase cars during the EOFY to maximise their tax return.

However, dealerships are just as savvy and know that people are looking to upgrade their cars in June, thus deals during this period might not be as good compared to other sales throughout the year.

Consider when car makers have their end of the financial year; for example, Japanese car manufacturers have their end of the financial year in March, as they may have sales during that time.

It’s worth checking specific end-of-year periods for the brand you plan on purchasing to increase savings during their sale periods.

End of the calendar year

December should be the month you think about buying a car as dealerships are more motivated stock that will become ‘last year’s’ models.

Generally, there are more bonuses in December like additional equipment and potentially cash bonuses as cars with the previous year’s build are harder to sell in the new year.

It’s worth noting that European, Japanese and South Korean cars are on a ship for approximately two to three months on their way to Australia. This means that a car you buy in December might have come off the assembly line in August or September.

The start of the calendar year

At the start of the calendar year, you may find sales of the previous year’s models at discounted prices. You’ll see dealers driven to sell ‘old’ models before February/March when they become less appealing to customers.

Every car in Australia carries a build plate and a compliance plate, which can be found in the engine bay. The build plate has the unique vehicle identification number (VIN) and the engine, transmission, and paint codes with the date of manufacture (month and date). The compliance plate confirms the VIN and has the month and year the car was certified as compliant with Australia Design Rules (ADS) and approved for sale.

For cars that have been imported and have travel times, the compliance date will be different from the date of manufacture.

Consider enquiring about the build date of the car you plan on purchasing, especially if the car you want has delivery delays.

End of the month

Dealerships and salespeople will have end-of-month sales targets they want to hit, or even a certain sales volume to receive a bonus from the manufacturer.

For a customer, this means there may be end-of-the-month sales to consider when purchasing a new car. It’s more likely that you’ll get discounts and bonuses from dealers wanting to hit their monthly targets.

Model run-out/stocktake sales

New cars age after a few years and demand will decline as new models arrive. Researching how long a model has been on the market and how soon it will be updated will let you know roughly when manufacturers will have their runout sales.

Discounts will pop up from dealerships for models that are about to be replaced, which makes for a great time to get a deal on a new car and perhaps negotiate additional extras with the salesperson as they try and clear older stock.

If you don’t mind having an outdated model, buying a car during a run-out sale will maximise savings on a new car.

When you have your budget

If you go into the dealership without considering a budget, there are costs and additional extras that will pile up without you realising. Factor in any additional upgrades you want be it tinting or extra safety features, on top of insurance costs and certain colours.

When armed with your budget, knowing what extras you want, and timing your trip to coincide with a sale, that day will be the best time for you to upgrade your car.