If you’ve been thinking about should I buy a car at the end of the financial year, now is the best time to do so. The end of the financial year period is the season of car sales and also one of the best times in a year. Both the dealership and the customer are on the same side to clinch a deal. There’s a bonus for buyers who are small business owners, such as tax returns and instant asset write-off.
Buy a car at the end of the financial year?
Yes, Great Car Bargains
Industry sales figures indeed suggest that June is the best-performing month statistically due to the demand for crucial sales quotas. EOFY is their last chance to hit yearly targets and rack up sales. This season of the year is the traditional car sales season; which means buyers are keen to snap up a bargain, and deals are incisively offering discounts for existing stocks that need to be sold off for tax purposes.
Apart from a discounted price, offers can range between extra free features, or free ownership costs such as extended warranties, servicing, and registration. Some of these incentives can make a huge difference to the sale price for both private and business buyers.
Yes, Tax Deduction is applicable
If you are a small business operator, buying a truck or utility vehicle during the EOFY period means an instant asset tax write-off. While you should keep in mind that the Australian government has introduced a new asset limit from $30,000 to $150,000. And also increased the pool of eligible businesses as part of the Coronavirus stimulus package in March. Moreover, the federal government has now extended the deadline for making claims from 1st July to 31st December. Any car or any type of vehicle, new or used, as long as the cost is under the $150k limit, is eligible for the instant asset write-off. The instant asset write-off scheme allows businesses to deduct the value of an asset in the year of purchase immediately, rather than claiming deductions over several years.
When you buy a car at the End of the Financial Year, you can get a good price on the vehicle. And take advantage of the asset tax write-off. But when it comes to financing, be careful.
We, at Credit Hub, are here to help you with financing your business goals. We understand that the right asset influences the growth of your business. You don’t need to cut back on your working capital to purchase a vehicle for your businesses. We can help you find the car loan that perfectly suits your interests and the position of your finance from a number of lending partners in Australia, helping you to manage your cash flows.