The process of buying a new car in Australia has changed a lot in the past decade, but it seems the basic rules for securing the best deal have not.
Even with the advent of direct manufacturer-to-consumer online sales (like that used by Tesla and Polestar) and direct OEM agency models (employed by Honda and Mercedes-Benz), there are five key considerations worth making when choosing to purchase a new set of wheels.
Turning up to a physical dealer with a clear picture of what you want can streamline the process further. For this, you can reference the Open Road team’s extensive catalogue of road tests and reviews, as well as our guide to buying a new car.
Alternatively, there are umpteen benefits to purchasing a used car instead, the guide for which you can find here. Also keep in mind NRMA member benefits when using Carma for any used purchase.
In short, our key considerations for buying a new car include:
- The end of the month is a good time to bargain, and the end of the financial year is traditional car sales season
- The end of the year is also a great time to go car shopping
- Look out for run-out deals ahead of a new car model release
Top five times of year to buy a discounted car
- The end of the month
Dealers might be pushing to achieve a sales target or reach a certain volume that will earn them a bonus from the manufacturer near the end of the month (or the end of the quarter). If you time it right – which is often more luck than good planning – it’s possible to buy a car discounted to the point at which the dealership is actually losing money on it, because by selling just a few more cars they will achieve a significant manufacturer bonus.
- The end of the financial year
New-car sales season hits in June, driven by brands and dealers keen to hit their targets and boost financial year sales figures (except for those makers that have different fiscal years – i.e. Japan's fiscal year ends on March 31). Historically, monthly car sales volumes are up substantially during this period. This can be a great time to buy a car at a discount, or receive a bonus such as an extended warranty, roadside assistance or accessories such as window tinting, alloy wheels or floor mats. This time of year often works well for business buyers as they’re able to gain a tax advantage soon after claiming an expense.
- The end of the year
December can be a good time to buy a new car for an entirely different reason than the May/June sales season. Dealerships grow increasingly motivated to sell cars built that year, because they will soon become last year’s model.
- The New Year
That said, it’s likely that many new cars sold in January were built the previous year, so plate clearance deals can get even better advancing into the New Year.
This means it can pay to ride out the End of Year sales and buy your new car during the early-year plate clearance sales. By February, a car built the previous year will be offered among new cars built that year, but often at a discounted price. With people generally slowing down through the festive season and over January – often taking stock of the year passed and what lies ahead in the year to come - this can also be a handy time to part ways with your existing vehicle.
- Model run-out
Knowing how long a model has been on sale or, even better, how soon a new or updated version is likely to arrive can put you in a strong position to negotiate. If a car has been around for three or four years, it's likely due for an update. If it's been around for six or seven years, there could be an all-new model coming, both of which mark good times to bargain hard on a soon-to-be-superseded model.
On the other hand, the forthcoming model might have improvements or extra features, often without a price increase, so it might be the better deal. The arrival of the new version will also have the effect of increasing the depreciation of the old model; you might be getting a discount up front, but there will be a corresponding reduction in what your superseded model is worth as a used car too.
The flip side of this is buying a newly released model will usually give you very little room to negotiate. So, while there’s more than one good time to save money on a new car throughout the year, there is little doubt that the arrival of a new model is the time in which you’re least likely to get a bargain.
