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

Discover why EOFY is the best time to buy a car in Melbourne. Learn about dealer incentives, tax benefits and negotiation strategies that can save thousands on your next vehicle.

The automotive industry operates on rhythms that savvy buyers learn to recognise and exploit. While most consumers spread their car purchases randomly throughout the year, those in the know understand that timing can mean the difference between paying full price and securing a deal worth thousands of dollars. The end of financial year period, spanning roughly from May through July, represents the single most advantageous time for car buyers across Australia, and particularly in Melbourne’s competitive automotive market.

This isn’t merely industry folklore or wishful thinking from bargain hunters. The statistics paint a compelling picture of an annual phenomenon that transforms the relationship between buyers and sellers. During these crucial months, dealerships shift from their usual position of strength to one where they need customers more than customers need them. Factory incentives flow freely, sales targets create urgency, and inventory pressures mount to create the perfect storm of buyer opportunity.

For Melbourne residents, this period offers exceptional advantages. The city hosts over 200 dealerships across major automotive precincts in Richmond, Port Melbourne, Nunawading, and the outer suburbs. This concentration means intense competition as each dealer tries to outdo the others in clearing stock and meeting annual targets. Whether you’re seeking a family SUV, a tradie’s workhorse, or an efficient city commuter, Melbourne’s EOFY period consistently delivers Australia’s most competitive pricing, financing options, and value-added packages.

Understanding why this happens, how to capitalise on it, and what specific advantages await the prepared buyer can transform your next vehicle purchase from a routine transaction into a strategic victory.

The numbers behind EOFY car sales dominance

The data tells an unambiguous story about the automotive industry’s annual sales patterns. June consistently emerges as the strongest sales month across virtually every brand and vehicle category. This performance would be impossible to achieve through random market forces alone.

Toyota, Australia’s market leader, provides the most striking example. In June 2024, the brand sold 20,903 vehicles. This represents 8.6% of their entire annual sales volume condensed into a single month. Compare this to the theoretical 8.3% if sales were distributed evenly across the year, and the concentration becomes clear.

The 2023 figures show even more dramatic impact. June sales jumped 25% compared to the same month in the previous year. This wasn’t gradual growth but a sharp spike directly attributable to EOFY dynamics. Across Australia, 1,237,287 new vehicles were sold in 2024, up 1.7% from the previous year’s 1.2 million sales.

The Federal Chamber of Automotive Industries data reveals this pattern extends beyond Toyota. Brands like Jeep, MINI, Volkswagen, Renault, and Subaru report similar trends. Some achieve up to 10% of their annual sales volume in June alone. Even luxury manufacturers like Porsche participate in EOFY incentive programs, recognising the power of this annual sales acceleration.

These statistics show remarkable consistency. The pattern has persisted through various market cycles, economic downturns, and supply chain disruptions. Even with recent monthly volatility—May 2025 recorded 105,285 new vehicles sold, down 5.2% from May 2024—the EOFY effect continues driving June sales significantly higher.

Melbourne’s automotive landscape amplifies these national trends. The city’s major dealership precincts create concentrated competition during EOFY. Richmond’s Swan Street automotive strip, Port Melbourne’s Salmon Street precinct, and Nunawading’s Whitehorse Road corridor house competing brands within walking distance. When multiple dealerships experience simultaneous pressure to meet annual targets, the resulting competition benefits every potential buyer in the market.

Why dealers are motivated to deal during EOFY

The automotive retail business operates on a complex web of incentives, targets, and financial pressures that create powerful motivations for dealerships to prioritise sales during the EOFY period. Understanding these dynamics helps buyers appreciate why the deals are genuine and why dealers are genuinely willing to sacrifice profit margins they would typically protect.

Annual sales targets form the foundation of dealer motivation. These aren’t arbitrary numbers but carefully negotiated agreements between dealerships and manufacturers that carry significant financial consequences. Meeting or exceeding targets typically triggers substantial bonus payments, both to the dealership as a business entity and to individual sales personnel. Conversely, falling short can result in reduced allocation of popular models, decreased marketing support, and strained relationships with factory representatives.

These sales commence a month or two before June 30 and can spill over into July if dealers are holding too much old stock. The timing reflects the practical reality that orders, deliveries, and paperwork must be completed before the financial year ends. Dealers can’t wait until the last week of June to begin their push.

Factory incentive programs amplify dealer motivation during this period. Manufacturers understand the importance of strong year-end results and typically reserve their most generous dealer support programs for the EOFY period. These might include additional rebates that dealers can pass through to customers, extended payment terms on inventory, or special allocations of high-demand models. Automakers are eager to clear out current or outgoing models before the next batch lands, and they’re not shy about throwing in chunky discounts or limited-time factory bonuses to sweeten the deal.

Inventory management creates another layer of pressure. Dealers want to hit bonus targets, move vehicles from the previous model year, and close out the financial year with strong sales figures. Carrying over previous model year stock into the new financial year represents tied-up capital and diminished appeal to customers who prefer the latest model year designation, even when the actual differences are minimal.

The accounting implications of EOFY also drive dealer behaviour. Strong June sales improve year-end financial statements, which can affect everything from bank lending terms to manufacturer relationship assessments. Dealers may be willing to accept lower margins on individual sales to achieve the volume necessary for these broader business benefits.

Competition among dealerships intensifies during this period as well. When every dealer in a market is pushing hard to meet targets, the competitive pressure naturally benefits consumers. This pressure creates a great opportunity for savvy buyers to negotiate. Sales managers who might normally hold firm on pricing become more flexible when faced with month-end deadlines and quota pressures.

Individual sales consultant motivation aligns with dealership goals during EOFY. Most automotive sales roles include commission structures and bonus arrangements tied to monthly and annual performance. A successful EOFY can make the difference between a good year and an exceptional one for sales personnel, creating alignment between individual and organisational incentives to close deals.

Types of EOFY deals and incentives available

The range of incentives available during EOFY extends far beyond simple price discounts, though these remain the most visible and immediately attractive to buyers. Understanding the full spectrum of available deals helps buyers evaluate the total value proposition and identify opportunities that might not be immediately obvious.

Price discounts during EOFY car sales in Australia typically range from 5% to 20% of the listed price, with some going even higher. However, the specific discount depends on various factors including the model’s popularity, available inventory, and how aggressively manufacturers support the clearance. Recent examples include the Mazda BT-50 SP Dual Cab with savings around $10,000, while the Hyundai IONIQ 6 models offered a $20,000 deposit contribution with Hyundai Finance.

Finance incentives often represent the most valuable component of EOFY packages, particularly for buyers who require funding. Manufacturers frequently offer low finance rates to make it easier for people on a budget to get into a new car, with rates often ranging from 1.9% to 3.99% comparison rates. These EOFY deals often come with finance rates that beat the usual bank or credit union deals, and dealerships are often able to cut out some of the fuss. The key for buyers is to focus on comparison rates rather than headline rates, as these include all fees and provide a more accurate picture of the true cost.

Factory bonuses represent direct manufacturer contributions to reduce vehicle prices. Examples include Subaru’s $1,000 factory bonus on Crosstrek models and $2,000 on Outback models, while Mitsubishi offers bonus cash cards of up to $3,000 on selected Triton and Outlander models. These bonuses are typically funded by manufacturers rather than dealerships, meaning they represent genuine additional value rather than margin sacrifice by dealers.

Dealerships may offer other incentives in addition to price discounts, such as cashback offers, discounts on insurance policies, free roadside assistance and extended warranties, extra accessories and more. These value-added packages can significantly enhance the ownership experience while providing tangible financial benefits. Extended warranties, in particular, can offer peace of mind and potentially save thousands in future repair costs.

Driveaway pricing simplifies the purchase process by bundling on-road costs into a single figure. This includes registration, compulsory third-party insurance, stamp duty, and dealer delivery fees. While this doesn’t necessarily represent additional savings, it does provide price certainty and eliminates the frustration of discovering additional costs during the final negotiation stages.

Runout deals apply to cars that will no longer be manufactured due to the arrival of a new generation or model cancellation. If you’re not fussed about having the absolute latest model, you could score thousands off on 2024 versions instead of waiting for 2025 refreshes. These vehicles are essentially new cars with previous model year designations, often with minimal or no actual differences in features or technology.

Demonstrator models represent another significant opportunity, being basically test-drive cars with barely a blip on the odometer. These low-kilometre cars used for test drives are often sold at steep discounts, making them a smart middle ground between new and used. Demonstrators typically feature high specification levels and come with full manufacturer warranties, despite having accumulated some kilometres through customer test drives.

Sometimes the magic is in the extras rather than price drops. Free on-roads, bonus accessories like tow bars or roof racks, extended warranties and roadside assist bundled in at no extra cost, and capped price servicing all add long-term value. While these may not provide immediate cash savings, they can significantly reduce the total cost of ownership over the vehicle’s life.

Tax advantages and business benefits

Business owners and those using vehicles for work purposes can access significant tax advantages during EOFY that extend well beyond immediate purchase price savings. These benefits can transform a good deal into an exceptional one, particularly for small business owners and sole traders.

The Instant Asset Write-Off provides immediate tax relief. Small businesses with turnover under $10 million can claim immediate deductions for eligible assets costing less than $20,000. This scheme continues until 30 June 2025, allowing full deductions for depreciating assets first used between 1 July 2024 and 30 June 2025.

While $20,000 doesn’t buy new vehicles in today’s market, it opens substantial used vehicle opportunities. A plumber or electrician could purchase a reliable work ute for under $20,000. The ability to claim the full purchase price immediately, rather than depreciating over several years, provides substantial cash flow benefits.

Mixed-use vehicles require careful calculation. If a vehicle serves both business and private purposes, only the business portion can be claimed. For example, an $18,000 vehicle used 80% for business allows deduction of 80% of $18,000 ($14,400). Maintaining accurate usage records becomes crucial for maximising benefits while remaining ATO-compliant.

For vehicles exceeding $20,000, businesses still benefit from accelerated depreciation. The ATO’s small business pool method allows 15% first-year depreciation, then 30% annually thereafter. While less advantageous than instant write-off, this provides faster tax benefits than standard schedules.

Electric vehicles unlock additional advantages. EVs and PHEVs qualify for FBT exemptions when provided through novated leasing arrangements. This applies to vehicles valued up to $91,387 (the luxury car tax threshold for FY 2024/25). The exemption for PHEVs expires 1 April 2025, creating urgency for hybrid buyers.

Timing maximises tax benefits. To qualify for 2024-25 financial year deductions, assets must be purchased, delivered, and ready for use before 30 June 2025. This deadline aligns perfectly with dealer motivation to clear inventory, creating mutual benefit.

Professional advice proves invaluable. If you’re a small business owner or tradie, EOFY represents the perfect time to upgrade work vehicles. However, ensure your accountant reviews the structure before signing. Professional tax guidance maximises available benefits while ensuring compliance with ATO requirements.

Strategic timing and negotiation tactics

Success in EOFY car buying requires more than simply showing up at a dealership in June. The most successful buyers approach this opportunity with strategic planning, thorough preparation, and well-timed execution that maximises their negotiating position while ensuring they secure the vehicle they actually need.

The optimal timing window begins in late May and intensifies through June, though sales can spill into July if dealers are holding excessive old stock. However, waiting until the final week of June can be counterproductive. Popular models may be sold out, dealer inventory may be depleted, and the urgency that motivates generous deals may have passed. The sweet spot typically falls in the second and third weeks of June, when dealer pressure is mounting but inventory remains adequate.

Research preparation forms the foundation of successful EOFY negotiations. In the weeks before EOFY, research the car models you’re interested in and their market value. This will arm you with knowledge to walk into a dealership with a fair price in mind for the exact type of car you want. Understanding typical pricing, available options, and competing models prevents dealers from steering negotiations toward their preferred outcomes rather than yours.

Don’t limit yourself to a single dealership: visit multiple to explore a broader range of options and compare prices and incentives. The competition among dealerships during EOFY means that information about one dealer’s offer can be valuable leverage at another. However, this strategy requires organisation and honesty about your timeline and intentions.

Remember that dealers are racing against the clock to meet their targets around this time, so you have the upper hand. Start with a lower offer than the listed price, and be prepared to walk away if the deal doesn’t meet your expectations. The willingness to walk away must be genuine rather than a negotiating tactic, as experienced sales consultants can distinguish between serious leverage and hollow threats.

Trade-in considerations require particular attention during EOFY. While time may be pressing as the June 30 deadline looms, try selling the old car privately if it’s neat and tidy and will sell quickly. Private sales typically yield higher returns than trade-ins, though they require more time and effort. For buyers with sufficient time and appropriate vehicles, the additional proceeds can offset some of the urgency associated with EOFY timing.

Note that the price you’re quoted by two competing dealers might not be the best possible figure if both dealers are owned by the same dealer group or perhaps both are owned by the wholesaler/distributor. Understanding dealer ownership structures and manufacturer relationships helps identify genuinely competitive offers versus illusory choices.

Multiple dealership approaches should be systematic rather than random. Focus on 3-4 serious contenders rather than attempting to visit every possible option. This allows for meaningful comparison while respecting the time constraints of both buyers and sellers. Be transparent with each dealer about your timeline and the competitive process, as this honesty often generates more aggressive offers than attempting to create artificial urgency.

Decision-making deadlines become critical during EOFY. Buyers usually need to buy and pick up their new vehicle before June 30 to ensure the process is wrapped up before the new financial year kicks off, though delivery deadlines can vary between manufacturers. Understanding each brand’s specific requirements prevents last-minute disappointments and ensures any tax benefits are captured in the appropriate financial year.

EOFY car shopping is like fishing: the best results come when you know where to cast your line. This means understanding which dealerships have the inventory you want, which brands offer the most generous EOFY incentives for your target vehicle category, and which locations provide the most competitive environment for negotiations.

Melbourne market advantages and considerations

Melbourne’s automotive retail landscape provides unique advantages for EOFY car buyers that extend beyond national trends. The city’s size, diversity, and competitive dealer network create conditions that amplify the benefits available during the end of financial year period.

Dealership concentration creates intensified competition. Melbourne hosts over 200 automotive dealerships across strategic locations. Richmond’s Swan Street houses premium European brands alongside mainstream offerings. Port Melbourne’s Salmon Street features major Japanese and Korean manufacturers. Nunawading’s Whitehorse Road corridor spans budget to luxury brands. This geographic clustering means dealers are acutely aware of competitors’ activities, driving aggressive EOFY positioning.

Comprehensive brand representation approaches market saturation. Unlike regional centres where buyers might travel hours to access certain brands, Melbourne buyers can evaluate virtually every manufacturer’s full model range within reasonable distances. This comprehensive choice means genuinely competitive alternatives rather than settling for available options.

Market sophistication works in buyers’ favour. Melbourne’s educated automotive consumers understand market dynamics and negotiate effectively. This pushes dealers to prepare attractive offers before negotiations begin. The positive feedback loop of informed buyers and prepared dealers benefits everyone in the market.

Service network density provides post-purchase value. Melbourne’s concentration of authorised service centres, spare parts availability, and warranty support reduces long-term ownership costs. This comprehensive support network makes it practical to purchase from any metropolitan dealer without concern about ongoing service accessibility.

Transport infrastructure accommodates EOFY timing pressures. Multiple port facilities at Melbourne and Geelong, rail connections, and distribution centres provide vehicle availability and delivery scheduling flexibility. This proves crucial when meeting June 30 delivery deadlines for tax or incentive purposes.

Dealer diversity offers different negotiating environments. Large groups like AP Eagers and smaller independent dealers provide varied approaches. Large groups offer standardised incentive packages and consistent policies. Independent dealers might provide more flexible negotiating environments and personalised service. Understanding which environment suits your style influences target dealership selection.

Local economic conditions affect timing. Melbourne’s seasonal patterns and economic cycles can create micro-advantages within the broader EOFY window. Winter weather in June and July might reduce showroom traffic, giving serious buyers additional leverage with sales staff focused on meeting targets.

Your next steps to EOFY success

The evidence supporting EOFY as the optimal car buying period is overwhelming, consistent, and accessible to any buyer willing to plan strategically and execute with precision. From the statistical reality of June sales spikes to the business pressures driving dealer motivation, every aspect of the automotive retail cycle aligns to create genuine buyer advantages during this annual window.

The key to maximising these advantages lies in preparation, research, and professional support. Understanding market dynamics provides negotiating leverage, but expert financing advice ensures the complete package delivers optimal value. The complexity of modern automotive finance, combined with the time pressures inherent in EOFY buying, makes professional guidance invaluable for achieving the best possible outcome.

For Melbourne buyers, the combination of dealer competition, comprehensive brand representation, and sophisticated market dynamics creates amplified opportunities during EOFY. The infrastructure and expertise available in Australia’s automotive capital means buyers can approach this opportunity with confidence in their ability to execute successful purchases.

The timing advantage of EOFY buying is temporary by nature, making preparation and decisive action important for success. With June 30 representing a hard deadline for many incentive programs and tax benefits, buyers who recognise the opportunity early and position themselves appropriately will consistently outperform those who approach vehicle purchasing randomly throughout the year.

Whether you’re seeking a family vehicle, business asset, or personal transport solution, the EOFY period offers a convergence of incentives, competition, and opportunity that makes it the logical time to act. The combination of dealer motivation, manufacturer support, and tax advantages creates a buying environment that won’t be replicated until the following year.

Ready to take advantage of the best car buying period of the year? Contact Attain Loans today for expert financing guidance that ensures your EOFY car purchase delivers maximum value and optimal terms. Our specialists understand the complexities of EOFY buying and can help you navigate the opportunities while securing the financing that best suits your circumstances.

Further questions

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.