June is a big month in the Australian new car market for both buyers and dealers.
It has consistently claimed the crown for the biggest month of new car deliveries in Australia, with the only recent exception being at a time of limited supply, oddly in 2022 when March sales a little higher.
Over the past 10 years, on average each June, 120,081 new cars were registered and delivered to customers.
For comparison, the next largest month is March with an average of 99,885 deliveries during the same period.
It’s no coincidence that this spike in sales coincides with the end of the fiscal year (EOFY). In fact, EOFY was the biggest driver of the June deliveries surge.
| Month | Average number of new vehicles delivered (2014-2023) |
|---|---|
| January | 81,636 |
| February | 88,194 |
| Steps are | 99,885 |
| April | 78,603 |
| Maybe | 94.165 |
| June | 120,081 |
| July | 87,298 |
| August | 89,869 |
| September | 93,871 |
| October | 89,783 |
| November | 95,227 |
| December | 93,029 |
The instant asset write-off scheme is a factor behind this.
First introduced in 2011, the instant write-off scheme allows eligible businesses to claim an immediate deduction for the business expense portion of a commercial vehicle in the financial year in which the vehicle is that was used for the first time.
In its current form, immediate asset write-off is a program that benefits the cash flow of small businesses by providing an immediate amortization line, rather than extending the amortization process over period of several years.
As a result, in recent years, qualified small businesses have flocked to purchase new commercial vehicles before June 30 (EOFY) to take advantage of depreciation benefits. Utes and trucks are especially popular on this front.
The criteria and thresholds to qualify for instant asset write-offs have changed over time, and the most recent iteration of the scheme makes it more difficult for businesses to access than during the COVID pandemic.
Thus, sales inflation caused by trade demand may not reach previous levels in the future.
Waverley Mazda general manager Ravi Emaduwage said: “We are seeing a lot of people wanting to take advantage of the instant asset write-off scheme.” Car expert.
“People need to pick up their cars before June 30 to match this financial year, this is especially popular for businesses buying BT-50 and BT-50 cars. CX-60 like their company car.”
From a private buyer’s perspective, June is also a great time to buy a new set of wheels because that’s when manufacturers and dealers offer the best deals, according to Mr. Emaduwage.
“The end of the financial year is traditionally an important month for car sales,” said Mr. Emaduwage..
“January and June are our biggest months, with June coming out on top.
“Customers receive EOFY incentives, many manufacturers will launch new campaigns and try to increase sales.
“Most customers will benefit from purchasing a discounted or accessorized vehicle.”
Some brands offer significant discounts on the sticker price of certain models. For example, Peugeot has made cuts E-2008 GT price over $25,000 until June 30.
Businesses are also taken care of. Two Mazda BT-50 Variants have been discounted drive-away nationwide for ABN holders. However, many factory bonuses are only available to private buyers.
Other manufacturers add value without changing the price by including accessories and other additional features.
Mitsubishi is looking to phase out its remaining 2023 model year triton customers by fitting select models with a $2000 free towing package.
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A model that is significantly discounted for EOFY
On the other hand, Mahindra is delivering Scorpio Buyers receive free maintenance for the first 3 years of ownership.
Some deals even include a combination of discounts and additional extras.
You can find the full list of new car deals currently available This.
It begs the question, what’s in store for dealers and manufacturers?
Turns out, quite a lot. As in most industries, the end of the fiscal year is the end point for manufacturers and dealers from a performance measurement standpoint.
Sales volume, revenue and profit/loss for the year are calculated based on data collated up to the end of June in any given year for most brands, thus a strong end to the financial year. can be the difference between achieving or not achieving key sales goals.
Offering discounts to car buyers, both new and used, helps dealers achieve that.
On a smaller scale, agents and salespeople are also chasing sales to achieve average monthly goals. Strong sales performance often leads to bonuses and promotions for those in the auto industry, so you should put in extra effort in June.
At the manufacturer level, automakers typically complete stocktakes at the end of the fiscal year as part of their own performance reviews. Manufacturers will offer wholesale discounts on cars to dealers in hopes of moving leftover inventory before the end of the fiscal year.
As a result, new car supply typically peaks in June, while generous deals simultaneously boost demand.
It was a perfect storm. Buyers chase bargains and dealers rush to deliver new cars before the June 30 deadline passes.
THAN: How to prepare your car for exchange
THAN: Should you pay cash or finance your new car?
