- June 10, 2020
- Posted by: Credit Hub Australia
- Category: Finance, Inspiration & Lifestyle
The financial year is about to end. It’s a time of the year when both the dealership and customer are on the same side to clinch a deal. Tax returns and instant asset write-off aside, there’s a bonus for buyers who are small business owners to pick up a new vehicle in June.
If you’ve been holding back on purchasing a truck or a car, now is the best time to do so. As it’s evidently reasonable to believe that during the end of the financial year period is the season of car sales and also one of the best times in a year.
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, and that’s why 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 which 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.
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 Australia 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. Since the $150,000 write-off will be in place until 31st December, businesses now have an extra six months to process their asset claims. 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.
In this climate, you can get a good price on the vehicle and also 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 t cut back on your working capital to purchase a vehicle for your businesses. We can help you to 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.