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Dealers want used stock gone before 30 June. Know the age limits, private sale rules, rates and PPSR checks, and get pre-approved before you shop.
Buying a used car on finance at EOFY can mean a good deal, but check five things first: lenders cap the car’s age at the end of the loan and may limit kilometres, private sales are treated differently from dealer sales, used car rates are often higher, a PPSR check is essential, and pre-approval lets you negotiate as a cash buyer.
EOFY is one of the busiest times of year for car sales, and dealers are motivated to clear used stock before 30 June.
That can mean real discounts for buyers who are ready to move. But financing a used car works differently from financing a new one, and knowing the key differences before you start shopping can save you time and prevent some costly surprises.
1. Lenders have stricter criteria for older vehicles
Most lenders place limits on the age and kilometre reading of vehicles they will finance. A common requirement is that the car must fall within a certain age at the end of the loan term, not just at the time of purchase. High-kilometre vehicles can also face restrictions.
Knowing these limits before you find a car you like avoids the frustration of discovering finance is unavailable or significantly more expensive. A car that’s a few years older can mean a shorter maximum term, which pushes up the monthly repayment.
2. Buying privately is treated differently from buying from a dealer
Dealer purchases generally come with consumer protections and a cleaner paper trail, which lenders view more favourably. Private sales are financeable, but some lenders require an independent inspection or valuation, and the interest rate offered may be higher.
If you are considering a private purchase, understand how your lender treats those transactions before committing to a price.
| Dealer purchase | Private sale | |
|---|---|---|
| Consumer protections | Statutory warranty may apply depending on the car’s age and kilometres | Limited |
| Paperwork | Dealer handles title and invoices | You verify ownership and history |
| Lender requirements | Usually straightforward | May need inspection, valuation or extra checks |
| Interest rate | Depends on lender and car | May be higher with some lenders |
| Price | Room to negotiate, especially at EOFY | Often lower, with more risk |
3. Used car loan rates are often higher than for new vehicles
Lenders price used car loans to reflect a depreciating asset with less security over the loan term. Rates also vary more widely between lenders for used vehicles than for new ones, so comparing options before you commit can make a meaningful difference to the total cost.
Your credit history and deposit affect the rate too. Read how credit scores shape car loan outcomes and how much deposit you need for a car loan before you apply. When you compare loans, look at the comparison rate and the total amount you’ll repay, not only the headline rate.
4. Check the vehicle history before you apply
A PPSR check confirms whether a vehicle has money owing on it, has been written off or reported stolen. Some lenders require this as part of their assessment, but running one yourself early means you have the information before investing time in an application. It takes minutes and costs a small fee.
Get a mechanical inspection too, particularly for private sales. Service records, a roadworthy certificate where required and a test drive all help you avoid buying a car with problems the price doesn’t reflect.
5. Sort finance before you start shopping
EOFY creates urgency that dealers use to their advantage. Having finance pre-approved before you walk in means you know your budget, you are not relying on dealer finance, and you can move quickly when the right vehicle comes up. At this time of year, being finance-ready is often the difference between securing a vehicle and missing out.
If you’re trading in, value your current car separately so a sale discount isn’t offset by a low trade-in price. Our trade-in tips can help, and our guide on why the end of the financial year is a good time to buy a car covers the timing. Business buyers should also ask their accountant about the instant asset write-off and equipment finance planning before 30 June.
Get pre-approved before you shop
For more on older vehicles, read why older cars are harder to finance. If a dealer offers a finance special, our guide to 0% car finance deals explains what to compare.
A finance broker can help you compare used car loans across a range of lenders before you start shopping, so you are ready to move when the right vehicle comes up. Buying through a business? Ask about business car loans. Attain Loans is a finance broker in Melbourne’s west, and any loan is subject to each lender’s assessment.
This article is general information only and doesn’t take into account your objectives, financial situation or needs. Consider whether it’s appropriate for you and speak with a licensed professional before making a decision.
Further questions
Is EOFY a good time to buy a used car?
Are used car loan rates higher than new car loan rates?
What is a PPSR check?
Can I get finance for a private car sale?
Should I use dealer finance or get pre-approved?
This is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.
