Why EOFY is a Great Time to Buy a Used Car

Why EOFY is a Great Time to Buy a Used Car

As the end of the financial year (EOFY) approaches, savvy shoppers know that it's not just about scoring deals on office supplies or updating your tech gadgets. It's also an opportune time to consider major purchases like a car. While many people associate EOFY with discounts and sales primarily in the realm of new vehicles, there's a hidden gem waiting to be explored in the realm of used cars.

1. Increased Inventory 

Dealerships often experience a surge in inventory during the EOFY period. Many car buyers trade in their vehicles as they look to upgrade, which means dealerships have a broader selection of used cars available. This increase in inventory provides buyers with more options to choose from, increasing the likelihood of finding a vehicle that fits their needs perfectly.

2. Depreciation Benefits 

One of the most significant advantages of buying a used car is avoiding the steep depreciation that new cars experience in their first few years. By purchasing a car that is a few years old, buyers can benefit from a vehicle that has already undergone the majority of its depreciation. This means that the car's value is more stable over time, providing better long-term value for money.

3. Lower Insurance Costs

Insurance premiums for used cars are typically lower than those for new cars. Since the value of a used car is lower than that of a new one, insurance companies calculate premiums based on this lower value, resulting in lower insurance costs for buyers. This can lead to significant savings over the life of the vehicle.

4. Tax Deductions and Business Benefits 

One of the most compelling reasons for small business owners to purchase a vehicle during EOFY is the opportunity to leverage tax deductions. In many countries, including Australia, businesses can claim deductions for vehicles used for business purposes. By purchasing a car before the end of the financial year, small business owners can potentially write off a portion of the vehicle's cost as a tax deduction, thereby reducing their taxable income. Additionally, for businesses that use vehicles predominantly for business purposes, there may be opportunities to claim ongoing expenses such as fuel, maintenance, and insurance as tax deductions. Consulting with a tax professional can help small business owners navigate the complexities of tax deductions related to vehicle purchases and usage.

Conclusion

The EOFY period presents a prime opportunity for buyers to invest in a used car. With increased inventory and tax benefits for small businesses coupled with the inherent benefits of buying used, such as lower depreciation and insurance costs, there's never been a better time to consider purchasing a pre-owned vehicle. So, if you're in the market for a new set of wheels, don't overlook the potential savings and benefits that the EOFY period can offer in the realm of used cars.