Why should buy a car at the end of the financial year?

The end of the financial year (EOFY) is often one of the best times to snap up a bargain in the automotive market. Buyers are often in a stronger position during this period, with stock levels, sales targets, and factory incentives delivering some of the biggest discounts of the year.  

EOFY deals typically ramp up in May and June and can sometimes continue into July, because manufacturers and dealerships alike are focused on clearing older stock before the books close. Dealers want to hit bonus targets, move vehicles from the previous model year, and close out the financial year with strong sales figures. This pressure creates a great opportunity for savvy buyers to negotiate.

In June, many brands record a large spike in sales. For example, Toyota has consistently sold around 10% of its annual volume in June alone. Brands like Jeep, MINI, Volkswagen, Renault, and Subaru often report similar trends. Even luxury brands such as Porsche have been known to offer significant EOFY incentives.

The key here is timing. If you walk into a dealership towards the end of June and make a serious offer, chances are the sales manager will be open to negotiation, especially if you’re ready to sign before July 1. Dealers are often backed by end-of-quarter bonuses and factory incentives, which they can pass on to buyers in the form of discounted pricing or added extras.

Those extras might include upgraded trim levels, bonus accessories, reduced finance rates, or longer warranty packages. If you’re flexible on things like colour or exact specifications, you may be able to drive away in a well-optioned car for significantly less than its sticker price.

Dealers are also keen to move demonstrators and cars built in the previous model year. While these vehicles might have seen a few test drives, they’re still new and can come with full factory warranties. If you plan on keeping the car for several years, the savings can outweigh any long-term resale value concerns.

Private buyers in particular are well-positioned to benefit. Factories often reserve their most aggressive EOFY bonuses for retail customers, especially on vehicles that may not be moving as quickly. Think sedans in a hatchback market or less popular colour choices.

It’s also a good time to consider demonstrator vehicles. These cars can be heavily discounted, particularly at dealerships looking to meet EOFY targets. With low mileage and a high spec level, they’re worth considering.

To get the most out of EOFY deals, do your homework. Know what you want, what it should cost, and what your trade-in is worth. Shop around and get multiple quotes. If you’re financing, speak with your broker ahead of time to secure pre-approval so you can negotiate confidently.

And don’t be afraid to ask dealers to sweeten the deal. Extras like extended warranties, accessories, or low-rate finance offers can add real value, but make sure you’re not sacrificing a larger discount in exchange for perks you may not need.

EOFY deals are real, but not all offers are equal. Look beyond the banners and stickers, check warranty terms, and read the fine print. With some preparation and timing, you can secure a great deal that works for your budget and lifestyle.