When is the best time of year to buy a car?

When is the best time to buy a new car?

When is the best time to buy a car? Well, in a crazy, jumbled 2022, it depends to some extent on whether you're buying a new car or a used car, but it's also true that the old rules on this matter have changed in recent times. 

The best time of year to buy a car is now more about supply and logistics than it once was, meaning the old rules aren't enforced as rigorously as they used to be.

So let's start with the dealership: when is the best time to buy a new car? Once upon a time, an urban legend believed that the best time to buy a brand new car is at the beginning of the new year, when cars with last year's matching number are removed from showrooms. And while it's still an important consideration, it's by no means the only one in these volatile times with limited supply.

Similarly, the best time to buy a used car was when a new model was imminent. Except it's been turned on its head lately. Yes, it's a brave new world of car buying. So what is the reality in 2022?

Buying new

Last year's model

In the new year, dealers want to get rid of all cars with the previous year's date on the compliance plate. (Image credit: Australian Compliance Plates)

The first few weeks of the new year are still a good time to buy a new car, as dealers are getting more and more desperate to clear the floors of cars with the previous year's date on the matching plate. So you can save some money by helping out in the process.

The catch is that when used cars are assessed by insurance companies or leased out, the determining factor is the date they were made (not the date they were first registered). 

So, the car with the 2021 compliance label that you bought in January 2022 is suddenly one year old. And there goes the value of any discount. If you plan to keep the car for a few years, it doesn't matter. But if you sell it after, say, three years, you will take a bigger depreciation hit.

Black Friday

Black Friday is not only an American phenomenon.

This relatively new phenomenon appeared at the end of the year and, as expected, it was picked up by people selling everything from stationery to puppies. And, of course, cars. 

Whether you make a deal or not has much more to do with stock deliveries and brand-to-brand waitlists than with the chaotic retail scenes in 1960s Philadelphia (the origin of the Black Friday reference).

Car sales on Boxing Day were also once quite a big deal, but buyers these days don't seem to take the bait. It seems that many people would rather go cricket than haggle with a car dealer during the Christmas holidays.

EOFIS

The end of the financial year brings excellent buying conditions.

It's tempting to think that the world of retail stops on June 30th and resumes on July 1st with the start of a new financial year. Which doesn't make sense to those who are actually in business. 

But the idea of ​​a fresh start is enough to suggest that car dealers must clear their inventory on the last day of the fiscal year or risk some fate.

More relevantly, buyers can pick up the car before June 30 and include some tax-deductible expenses on their tax return for this year, instead of waiting to file for their next tax return. 

In these days of quarterly tax reporting, this is probably less relevant than it once was. But watch out for news that the government is allowing full asset writedowns for investments in new companies (including working vehicles), as this could lead to business buyers flocking to dealerships.  

However, sales at the end of the fiscal year are noteworthy, especially if dealers are willing to negotiate under the EOFYS banner on the show floor.

next year model

Demand for the LC200 has skyrocketed.

The arrival of a new or updated model in showrooms is often a signal to pick up an old model at a bargain price. But in this time of supply chain constraints, with many makes and models now on a waiting list of several months, that's less likely than it used to be. Dealers are less interested in negotiating when they know they can sell or take orders for any car they can get their hands on.

Let's not forget that there are cars like the Toyota LandCruiser where the demand for the old V8 version went crazy as soon as it became known that the new model would be equipped with a V6 engine. 

Add to that the supply restrictions, the fact that used units were changing hands for thousands of dollars at the new price, and you can see why no one was getting a deal on a 200-series LandCruiser ahead of the 300-series.

Used purchase

You need to keep an eye on online ads and take what you want when it becomes available. (Image credit: Malcolm Flynn)

Given that the rules for new cars have changed, what is the best time to buy a used car in Australia? If you're looking for a cheap used car, there are practically no rules we can guide you. 

You need to keep an eye on online ads and take what you want when it becomes available. However, many private sellers feel the need to forgo cars they don't use at tax time, but that's a pretty vague concept. In any case, used car prices have never been higher, so the best advice is to come when you can.

When buying from resellers, things are a little different. A long-awaited new model (like the 300-series LandCruiser) will often face a ton of old model swaps when the new one hits showrooms. 

While the waiting list for the 300 series is huge, this is a good example, as many LandCruiser owners have cashed in and will sell the next model out of habit.

Also keep an eye out for new models like the Toyota Camry, Subaru XV or Kia Cerato when they hit the market, as many rider-drivers will swap for the new model at that point, flooding the market with previous models. model. The same goes for large rental fleets, which can often decide to replace a large portion of their fleet in one go.

Sounds a little self-serving, but the effects of natural disasters like hail can cause many cars to break down with damage at very low prices as insurance companies and uninsured owners refuse them. 

However, resist the temptation of a flood-damaged car (unless you need the car for parts), as insurance companies pretty much regularly write them off, which won't touch that car again when you get it back on the road (unless, indeed, it's already gone). considered a non-refundable write-off). Flooding causes long-term damage that insurers know will come back to them in the coming years.

With the advent of the online auction, the entire car auction scene has also changed. But one thing hasn't changed; if you don't know the brand and model you're dealing with well, auctions can be a trap for younger players. 

Not only do you need to make sure you know what to expect, but you also need to feel comfortable betting on a car that you haven't driven and may not even have seen in person. But the advent of the online auction has definitely changed the time scale of these events, and now instead of random auctions taking place every few months, there is now a constant stream of bidding and buying.