Blog New year, new car! When's the best time to buy your next car?

New year, new car! When's the best time to buy your next car?

31 January 2021
New year, new car! When's the best time to buy your next car?

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New year, new you, new car? If you’re planning on buying a car this year, then there are certain times that can make binding a good deal a bit easier.

Saving hundreds if not thousands off the driveway cost of a car is a great deal for doing just a little bit of research and waiting for the opportune moment. So if you’re thinking of buying a new set of wheels in 2021, consider doing so during the following periods, which are historically great times to snag a bargain.

A good time to buy is December and January

The December Christmas period can be a great time to get a good price on a car, and if you’ve missed it in the hustle and bustle of buying presents, don’t stress. The New Year period in January has also historically been a good time for car prices. The reason for this is dealers are keen to offload that year’s models because in just a month's time they’ll be “last year’s cars”. The same applies in January, as these cars become less attractive as “new” models.

Keep an eye out in February too

Although not quite as prolific as the previous two months, February can also have a few deals on offer, as cars built in the previous year will still be offered among the new cars built in January but at a lower price.

End of financial year has some great deals

The more well-known time to snag a car for a steal is in May and June, before the end of financial year (EOFY). Like many businesses, car dealerships start their financial year on July 1, and most of them have sales targets to hit before then. Before the calendar rolls over on June 30, dealers often slash prices on cars they haven’t yet managed to sell in order to hit their sales targets, and are also more likely to include extras like extended warranties and roadside assistance for little cost.

This period is usually around 30% stronger for car sales than normal, so it might be worth waiting till then to see if you can find a car that needs to be sold. Drive a hard bargain by looking around multiple dealerships too.

Look at the end of each month

As well as having yearly sales targets, some dealers also have monthly targets they have to meet, usually one that grants them a bonus, while the dealerships themselves can also receive bonuses from the manufacturers for selling a certain number of that brand.

This can be harder to pull off as these sales aren’t exactly advertised like EOFY sales are, but with a bit of luck and good negotiating, you could get a great price on some wheels simply by buying at the end of the month.

Bonus tip: You’re also more likely to get a good deal on Mondays as Monday is usually the slowest day for car sales, but you’ll have to be willing to take your time with the dealer.

The time to buy could be right now

While these times have all been great times to purchase a car in previous years, if you’re ready to buy a car for a good price now, then there’s nothing wrong with striking while the iron is hot. Recent market trends, like continued declining new car sales and restrictions imposed by the coronavirus, means dealers are keen to move stock, and more Australians selling their cars are turning to online marketplaces. In the first few months of the virus, Gumtree’s online car marketplace saw an 11% increase in sales.

If you’re willing to haggle on price, you could get 10-15% off the purchase price, or possibly more. So come armed and be confident in what you’re willing to pay, and it might not matter what month you buy your car in.

How to finance your car purchase

Even though buying a car during these times is cheaper than normal, you’re still going to need help paying for it unless you have enough cash. A car loan, which lets you borrow the money and repay it in monthly instalments plus interest, can be a great way to finance your next car. loans.com.au can help you with this.

Calculate your loan repayments

Calculate your car loan repayments by using loans.com.au’s Car Loan Calculator and entering:

  • The car’s price

  • The loan amount you want

  • Your loan term

  • Your interest rate

  • And your repayment frequency

Doing this can give you an idea of whether you can afford to buy this car you’ve bought at a discounted price. You’re more likely to be able to do this with loans.com.au as our car loan interest rates are some of the lowest around, with an even bigger discount applied if your car is environmentally friendly.

If you’re ready to pounce on that car with the reduced price, then make sure you save even more money by speaking to one of our friendly lending specialists and getting started on your car loan application.

Apply now