The lead-up to the end of the financial year (EOFY) is the busiest time for car dealerships and the best time to get a great deal on your next vehicle.
In this blog, we look at all the factors that make EOFY the perfect time to buy, including the tax breaks you’re entitled to if you purchase a vehicle for business use.
Car finance tax deductions and other reasons to buy at EOFY
1. Auto loan tax deductions
If you’re buying a vehicle as a small business owner (e.g. a tradie or independent contractor), you can claim a car loan tax write-off on the interest you pay on your loan.
You can also claim tax deductions for:
- Fuel and oil
- Repairs, servicing and insurance
- Lease payments
- Registration
- Depreciation on the value of the vehicle
Make sure to follow appropriate calculation methods when determining the expenses you can claim.
Also, ensure that you separate costs associated with private and business use of the vehicle and only claim for the business portion. The Australian Tax Office provides clear instructions on how to do this.
2. Manufacturers and dealers need to clear stock
EOFY sales exist because manufacturers and dealerships want to clear as much of their stock as possible before 30 June. The more sales, the better their bottom line. Car dealers are incentivised with better commissions during this period to ensure they move as much stock as possible.
This is why you’ll see such great discounts at EOFY. Dealers will also be more receptive to price negotiations because they want to secure their commission. You could get a great deal on a car that’s already heavily discounted by sticking to your guns – dealers can even ask their car wholesaler for a discount to get your deal over the line.
3. Interest rates
After an extended period of rising and then stagnant interest rates, the Reserve Bank of Australia has finally begun decreasing the cash rate, doing so in both February and May. This is excellent news for car buyers who are considering variable-rate loan financing.
By the same token, falling interest rates also mean banks can offer better fixed-rate loan deals to attract prospective borrowers. No matter how you look at it, a decrease in the cash rate is great news for borrowers entering the EOFY period.
4. High demand for trade-ins
Vehicle imports have decreased in recent years, so there’s increased demand for good-quality used vehicles, especially if you want to trade in your car as part of a purchase.
That being said, it’s still good to shop around for the best sale prices. Dealerships are likely to give you a better price for your car if you’re trading it in to purchase a new one, but you may still find that another dealer is willing to offer you more, depending on demand for your specific vehicle. Ensure your car is up to date on servicing and maintenance to get the best sale price.
You’ll probably make the most money selling it privately, but this requires more work on your part, so you’ll need to weigh up the pros and cons.
Whatever you decide, make sure you do some research and compare offers before agreeing to a sale price. That way, you gain the maximum financial benefit and can put more money towards your EOFY car purchase.
Getting the best EOFY car loans in Perth in 2025
To make the most of EOFY car sales, it’s best to have your car financing worked out ahead of time. That way, you can secure your new car knowing exactly where you stand financially.
Our expert team is here to help you get the most out of your car purchase this EOFY. Our online application process is fast, simple and personalised, so you can buy your new car knowing you’ve made the right choice.
Ready to learn more about our car finance options? Contact us today. We say YES more often.
