Buying a car is a big financial decision that needs careful planning. And if you want to score a bargain, having patience can truly be a virtue.
“Timing is everything” and this saying is especially true when making a big financial commitment like buying a car.
And with Aussies feeling the squeeze of the high cost of living, turning up at showrooms at the right time can significantly impact your financial situation.
But when are these windows of opportunity for bargain deals? In this article, we at Parkhound will tell you the best times of the week, month and year to buy a car.
We’ll also give you insider tips on which holidays offer the best car deals and other trends in the industry that can help you make the biggest savings.
What is the best day of the week to buy a car?
Monday is the best time of the week to buy a car. This is because the start of the workweek are generally slow days for car sales, according to industry experts.
Other potential buyers are busy at work, so anyone who comes in the door during work gets more attention from sales staff.
So if you come to the dealership’s door this day, salespeople will try to sweeten the deal for you by offering a lower purchase price.
But the perks don’t stop there. They can even throw something extra to seal the deal, such as free oil changes and free car washes – all of which can save you money on maintenance in the long run!
Here are our other tips for the best time in a week to buy a car:
- Make time. If you’re going to try your luck scoring a good deal on a Monday, make sure you’re willing to take your time with the dealer. Buying a car takes time and is usually not a one-hour negotiation.
- Consider other slow days of the week. Tuesdays or Wednesdays might also be your golden ticket to getting the best car deal—especially if you’re in an area where dealerships don’t open on Sundays. In NSW and Victoria it’s legal to trade on a Sunday, with some dealerships choosing to operate. However in Queensland, South Australia and Western Australia, car dealerships are not allowed to be open under state trading laws for ‘non-exempt shops’.
What is the worst time of the week to buy a car?
Meanwhile, Sundays are named by experts as the worst times of the week to buy a car. A study showed the average buyer saved round 7.49% if they bought a car on Sunday, lower than the 8.10% median savings pocketed by those who buy on Mondays.
Although the difference doesn’t seem much, remember that cars are expensive, with the average cost of a brand-new car in 2023 clocking in at $56,886, according to Finder.
Even the cheapest prices for a brand-new car last year were under $20,000. So the 0.61 percent difference could mean hundreds in savings!
Experts generally advise against buying a car during weekends. This is because weekends are generally more busy for car dealerships, with more people spending time looking for a car on their days off.
Since most people shop for cars on weekends, dealerships have less reason to offer sales since they already have plenty of customers coming in.
When is the cheapest time during the year to buy a car?
Mark your calendars and take advantage of these periods to get fantastic deals on your car purchase:
1. Before the end of the calendar year
The end of the calendar year or December is considered to be the best month to buy a car in Australia.
During December, dealerships want to sell out current models before they become last-year models. At this time, sellers are also looking to hit their end of second quarter financial quotas.
And this is all good news if you’re a buyer! Aside from getting a bargain price, you may also see sellers give extra incentives such as free add-ons, bonuses, cashback offers, deferred payment plans among others to make the deal more attractive for buyers.
2. The start of the year
The beginning of the year is also an ideal time to get a discount on your car purchase.
In January, dealerships are looking to sell what’s left of their car inventory from the previous year to make room for newer models during the quarter (around February or March). These sales events are also known as early year plate clearance sales.
And with dealerships motivated to clear out their inventory, buyers have a strong position during negotiations. With that said, make sure to check out clearance events around this period.
But one challenge you’ll face when buying a car during clearance sales is finding a dealership with a stock of the model you’re looking for. Chances are, you’ll have to choose from previous models. If shopping for outgoing models is not an issue for you, New Year is the perfect time to go car shopping!
Also, be sure to check both the build date and compliance date of a car you’re considering to buy during the New Year.
The build plate contains important details like the vehicle identification number (VIN), engine and transmission codes, paint codes, and the manufacturing date (usually the month and year).
This ensures you’re getting the correct model year and avoids potential confusion about its age.
3. End of the financial year
If you missed out buying at the start of the year, don’t worry! There’s a good chance you can still find a good deal on June 30, which marks the end of Australia’s financial year.
Like most businesses, dealerships are looking to hit their targets and get a last minute boost to their sales figures for tax time. That’s why the monthly volume of sales in June are historically higher compared to other times of the year.
This makes June 30th one of the best times to buy a car, because dealers are willing to give buyers way more freebies and perks, including an extended warranty, roadside assistance or complimentary car accessories including window tinting, alloy wheels or free floor mats.
Of course, you can also count on businesses to offer big discounts during this period.Car dealers usually estimate revenue and profit they’ve made over the year against their targets. This way, they can account for the stock they have on hand to work out their sales and sometimes offer thousands in savings on new and used cars.
Another reason why the sale period leading up to the end of the financial year is one of the most popular times to buy big ticket items like a new or used car is the tax advantage for business buyers.
The government offers instant asset write-off for eligible businesses. When buying a car for a business tax write-off, there is a maximum amount that you can claim imposed by the ATO, called the car limit. This is at $68,108 for the 2023/24 financial year and is applied before even accounting for business usage.
This allows small businesses to claim the depreciation amount (the amount of value something is likely to lose over time) of a work-related purchase like a car. Make sure to check out the Australian Taxation Office (ATO) website for more information.
But with End of Financial Year sales being so popular, be prepared to compete with other buyers to get the car you want. Make sure to have a back up model in mind if your top choice of car runs out of stock or you’re outbid by other buyers.
Also, car dealerships know that June is the peak season and many customers are looking to upgrade their car. With that in mind, the deal you get may not be as good as during other sales times of the year with some dealerships. Make sure to shop around for your options and know where you’ll get a bang for your buck.
4. Every end of the month
But what if you really need a car as soon as possible and you can’t wait for the EOFY, December or January? If you missed these sale periods, the end of the month can also be a good time to get good deals on cars.
It’s typical to see businesses have end of month sales to hit or even go above their sales targets for that month.
For some dealerships, they also get bonuses from manufacturers when they reach a certain volume of sales. They also have in-house sales goals to hit. So buyers will likely see a lot more discounts and sales being advertised during the tail end of the month.
So watch out for end of month sales at your local car dealerships and time your car purchase right.
5. End of each quarter
If your financial ducks are simply not in a row to buy a car during the start or end of year deals, take advantage of and buy a car during the final days of other sales quotas, such as the end of the financial quarter.
Here are the end of the financial quarters to watch out for in Australia to get good car deals:
- September 30th (End of first quarter)
- December 31st (End of second quarter)
- March 31st (End of 3rd quarter)
- June 30th (End of Quarter 4 and end of financial year)
If you can shop for a car on the very last day of the financial quarter, there’s a big chance you’ll receive the best deal possible as dealerships are looking to hit their quarterly quotas.
Which holidays can help me get a good deal on a car?
Making a trip to your nearby dealership during the holidays to see if you can score a good deal is a smart choice.
While the weekend is generally considered a bad time to get a great deal, holiday weekends are exceptions.
Holidays are some of the best times to purchase a car. Around major holidays, manufacturers offer huge discounts or free accessories just to draw foot traffic in.
But which holiday sales are worth going to? According to Carfax, December 24 and December 27 to 30 is a prime time to visit your local dealership.
Of course, some dealerships choose to run their biggest sales on other holidays and events, so make sure to do your research and keep tabs on your local dealerships’ promos.
Other tips on the best time to buy a car in Australia
Aside from the mentioned sales events, here are other times to keep in mind while you’re preparing for your purchase:
1. End-of-car cycles
It’s not just end-of-year sales you should be looking out for. If you want to save on your car purchase, there are two cycles to keep track of: the end-of-car-design cycle and an end-of-car-life cycle.
The end-of-car-design cycle is when a car manufacturer overhauls the design of a car model. Like when a new year’s model of a car comes out, when a car design is about to change, there are usually good deals on the outdated models when it happens.
If you’re looking for a bargain, you should also look at the end-of-car-life cycle, when a car is discontinued.
Buyers can save even more money by buying a car at the end of its cycle rather than a car that’s being redesigned due to the high depreciation of vehicles with end-of-car-life cycles.
But be careful! It’s important to know why a vehicle is being discontinued. If it’s due to lack of interest from auto buyers, it’s not a problem. However, if it’s due to safety issues, it’s probably more trouble than it’s worth.
2. When a new model is released
New model releases are a great time to get discounts. If you don’t have a problem owning an older model, it may be just the ticket you’re waiting for to own a car.
When a new model is released, the previous model of the same car will likely be priced at a lower price.
But while these run-out deals can be a good time to snatch a bargain, make sure to do your research. If there’s a car you’re interested in, keep an eye if it will have any new releases soon. Be in the know how long a car has been on the market and when the new version will hit the market so you’re in a strong position to negotiate when you buy.
Typically, cars get upgrades every three to four years following their release while total model updates happen every six to seven years upon the current model’s release. Keep these dates in mind while you’re gearing up for your car purchase.
3. Seasonal trends
Data shows convertibles sell more in summer and spring but will see weak numbers during the winter months. With that said, look out for sales on convertibles in winter, when dealerships may be looking to clear their inventory.
But what if you’re looking for a four-wheel drive? Trends show four-wheel drives sell best during autumn in winter, with more people looking for a more dependable car to travel through the harsher weather and less-than-ideal driving conditions.
So, buyers can find a good deal on four-wheel drives when looking to purchase a car during the summer months when four-wheel drive sales are weak.
4. Take advantage of upgrade season
Looking to buy a used car? During quarterly and holiday sales, people are also upgrading from their existing cars. To offset the cost of their new purchase, they sell their current cars. So take advantage of the big sales and look for a used car looking for a new home at a lower price!
Final thoughts
Whether you’re a first-time car buyer, looking to upgrade your ride or scouting for a second car, patience is key.
A car is a big personal investment, so make sure to pull the trigger on buying a car at the right time to make big savings. With the right timing and some strategic negotiating, you can get a great deal on your car purchase.
And to continue maximising your savings throughout car ownership, make sure to check out Parkhound!
Find a convenient parking space where you need it and when you need it. Whether you’re in Sydney, Melbourne, Brisbane, Perth, or anywhere across the country, we help you find the perfect spot that fits your needs and budget.
To learn more money-saving tips on your next car purchase, check out our article on the 10 hidden costs of buying a car in Australia.
