You can buy a new car now if you have been considering it. It is also the time of year when car sales are at their highest. The dealership and customer must be on the same page to close a deal. Small business owners can get tax returns or instant asset write-offs.
Buy a new car at the end of the financial year?
You can get great car bargains.
Statistics show that June is statistically the best-performing month due to the need for sales quotas. EOFY represents their last opportunity to achieve yearly sales targets. This is the season for car sales, which means that buyers are eager to grab a bargain. Deals are being offered to sell off existing stock for tax purposes.
Aside from the discounted price, other offers include free extra features or ownership costs like extended warranties, registration, and servicing. These incentives can have a significant impact on the price of a vehicle for both business and private buyers.
Yes, the tax deduction is applicable.
You can immediately write off your asset tax if you buy a truck, utility vehicle, or other business equipment during the EOFY. You should also be aware that the Australian Government has increased its asset limit to $150,000 from $30,000. The Coronavirus stimulus package of March increased the number of eligible businesses. The Federal Government has also extended the deadline to submit claims from the 1st of July until the 31st of December. The instant asset write-off is available for any car, whether new or used. As long as its cost does not exceed $150k, it is eligible. Instant asset write-off allows businesses to immediately deduct an asset’s value in the year it was purchased instead of claiming deductions for several years.
You can save money on a vehicle if you purchase it at the end of the financial year. Take advantage of an asset tax write-off. Be careful when it comes time to finance.
Credit Hub is here to assist you in financing your business goals. The right asset can influence the growth of your company. It is not necessary to reduce your working capital in order to buy a vehicle to use for your business. We can help you find a car loan from a variety of lending partners in Australia that suits your needs and your financial position, helping you manage your cash flow.