Buying a car in Australia isn’t just about finding the model you like-it’s about timing. The difference between paying full price and walking away with a $5,000 discount often comes down to when you walk into the dealership. If you’re planning to buy a car in 2026, knowing the right months to shop can save you serious cash without sacrificing features or warranty.
December is the best month to buy a car
Every year, dealerships in Australia scramble to hit their annual sales targets before December 31. Sales reps get bonuses. Showrooms get bonuses. The whole business runs on hitting quarterly and yearly quotas. By mid-December, most dealers are well past their targets-but they still have inventory to clear before the new financial year starts on July 1. That’s when they start rolling out clearance deals, factory incentives, and end-of-financial-year discounts.
Look at the data: according to Canstar’s 2024 car sales report, December saw the highest number of new car deals with discounts over 10% compared to any other month. Dealers are more willing to negotiate because they’d rather sell a car at $35,000 than let it sit on the lot for another six months. You’ll find better financing offers too-banks and lenders push special rates to close deals before year-end.
Don’t wait until the last week of December, though. The best deals hit between December 10 and 20. That’s when dealers know they’re close to their targets but still have room to move. By the 23rd, many sales staff are already off, and inventory gets locked in for the new year.
Why June and July aren’t as good as you think
You’ve probably heard that June and July are the best months because of the end of the financial year. That’s true-but only for businesses. Most private buyers don’t benefit as much. Dealerships do push fleet sales and commercial vehicle discounts in June, but for individual buyers, the inventory is often older models that have already been discounted earlier in the year.
Plus, July is when new model year stock arrives. Dealers raise prices to make room for the latest versions. A 2025 model that was $38,000 in June might jump to $40,500 in July just because it’s now a 2026 model. You’re not getting a better car-you’re paying more for the same one with a new sticker.
If you’re flexible and can wait until August, you might find leftover 2025 models still on the lot. But by then, the urgency is gone. Dealers don’t need to move them fast. You lose your bargaining power.
End-of-year clearance: what to look for
When December rolls around, you’ll see a lot of the same deals across brands. Here’s what actually matters:
- Factory-to-dealer incentives: These are cash rebates from manufacturers to clear slow-selling models. Look for models that had low sales last year-like the Hyundai Kona Electric or the Toyota RAV4 Hybrid in 2024. These get the biggest discounts.
- Free registration and CTP: In NSW and Victoria, dealers often throw in 12 months of registration and Compulsory Third Party insurance. That’s worth $800-$1,200 depending on the car.
- Low-rate finance deals: Brands like Ford, Mitsubishi, and Kia often run 0% or 1.9% finance offers in December. These are usually tied to specific models, so ask for the finance package separately from the car price.
- Trade-in bonuses: Some dealers add $1,000-$2,500 extra on top of your trade-in value if you buy a new car before December 31.
Don’t get fooled by "end-of-year sale" signs in November. That’s just marketing. Real discounts start after December 10. Check the Car Sales website or the Australian Competition and Consumer Commission (ACCC) price reports for real-time data on average discounts by model.
What about public holidays?
Public holidays like Labour Day in March or ANZAC Day in April can bring small discounts, but they’re not consistent. Dealers might offer a $500 bonus if you buy on a holiday, but it’s usually just a token gesture. The real savings come from the pressure of hitting annual targets-not a long weekend.
There’s one exception: the Melbourne Cup long weekend in November. In Victoria, some dealers run promotions tied to the race. But again, it’s regional, unpredictable, and rarely beats December’s deals.
When NOT to buy a car
January is the worst month to buy. Everyone’s broke after Christmas. Dealers know this. They raise prices and cut incentives. New model year stock is in, and they don’t need to move last year’s models fast. You’ll pay more and get less.
February and March are also risky. That’s when dealers start pushing the new models hard. They’ll tell you the 2025 version is "so much better"-but the changes are often cosmetic: new paint color, updated infotainment, maybe a different wheel design. The engine, safety features, and warranty are identical to last year’s model.
If you’re buying a used car, avoid September and October. That’s when dealers get their biggest shipments of trade-ins from the previous year’s buyers. Inventory is high, but so are prices. The best used car deals come in January and July, when dealers need to clear space for new stock.
How to lock in the best deal
Timing matters, but so does preparation. Here’s how to walk into a dealership in December and walk out with the lowest possible price:
- Know your budget. Use a car loan calculator to see what you can afford with monthly payments under 15% of your take-home pay.
- Get pre-approved for finance from your bank or credit union. Don’t rely on the dealer’s finance team-they make money on the interest rate.
- Check the market. Use Carsales.com.au or Drive.com.au to see what similar cars are selling for in your area. Look at the "last sold" prices, not the asking price.
- Bring a list of three models you’re interested in. Don’t say "I want a SUV." Say "I want a 2025 Toyota RAV4 Hybrid GX, 2WD, with leather seats. What’s the lowest you can go?"
- Ask for the out-the-door price. That includes registration, CTP, delivery, and dealer fees. Don’t let them hide extras.
- If they won’t budge, walk away. They’ll call you back within 24 hours if they’re desperate.
What about electric cars?
Electric vehicles (EVs) follow the same pattern. December is still the best time. But there’s an extra layer: state government rebates. In NSW, you get up to $3,000 off an EV if you buy before June 30. In Victoria, it’s $3,500 until June 30. In Queensland, the $3,000 rebate runs until December 31, 2026.
If you’re buying an EV in 2026, combine the end-of-year dealer discount with the state rebate. For example, a Hyundai Ioniq 5 that’s normally $48,000 might drop to $42,000 in December, then you get another $3,000 off from the state. That’s $5,000 saved before taxes.
Don’t wait until the last day to claim the rebate. Government programs often have limited funds. Apply early and get your paperwork in by mid-December.
Final tip: don’t fall for "limited time" offers
Dealers use urgency to push you into bad decisions. "Only two left!" "This deal expires tonight!" Those are almost always fake. There are always more cars. There’s always another deal next week.
What’s real is the pressure dealers feel in December. That’s your leverage. Use it. Walk in with a plan. Walk out with a better price. And remember-the best time to buy a car isn’t when the salesperson says it is. It’s when you’re ready, informed, and timing aligns with their bottom line.
Is it better to buy a car at the end of the month or end of the year?
End of the year is better. Dealers are racing to hit annual sales targets, which means bigger discounts, better financing, and extra incentives like free registration. End-of-month deals happen, but they’re usually smaller and only apply if the sales rep is close to their personal target. Year-end discounts are company-wide and backed by manufacturers.
Should I buy a 2025 or 2026 model car?
If you’re buying in December 2025, go for the 2025 model. The 2026 models will be priced higher, and the changes are usually minor-like a new color or updated software. You’ll get the same safety features, warranty, and reliability for thousands less. Save the premium for when you really need the new tech, not just the new year on the badge.
Do car prices drop in January?
No, they usually go up. January is when dealers clear out last year’s inventory and start pushing new models. Prices rise because demand is low and supply is fresh. You’ll pay more for the same car with a new model year label. Wait until the next December for better deals.
Can I negotiate a better price if I pay cash?
Yes, but not as much as you think. Dealers make more money on financing than on the car itself. Paying cash removes their profit from the loan, so they might not give you the best price. Instead, get pre-approved for a low-rate loan and tell them you’re financing. That gives you more leverage to negotiate the car price down.
Are used cars cheaper in December?
Not usually. Used car prices are highest in December because families are buying for the holidays. The best time to buy a used car is January or July, when dealers need to clear space for new stock. You’ll find more options and lower prices then.