Why are big purchases more popular at the end of the financial year?
June is one of Australia’s biggest spending months due to the popularity of End of Financial Year (EOFY) sales. Retailers make the most of the month before tax returns by offering incentivised sales to customers across the country. EOFY sales are also an extremely popular time for buyers to look into big-ticket items, such as cars and recreational items.
The increase in sales of large purchases can be attributed to a number of factors, including the rapidity of accessing tax deductions when the financial year ends. Although the tax deductions are the same throughout the calendar year, purchasing something towards the end of the financial year means that rebates can be processed much sooner. While some people may prefer to buy larger items after receiving a tax return, this does mean they will need to wait until the next financial year’s end before accessing those tax deductions.
Both buyers and sellers are keen to take advantage of sales before tax time, and this results in a market that becomes flooded with assets in the lead up to June.
If you’ve been biting the bullet on making a large purchase, read through our top 5 reasons Pickles’ buyers are jumping on EOFY sales today.
- Abundance of assets
It’s not only the buyers gearing up for EOFY. Sellers, too, take advantage of the market to offload assets by June 30. This momentum makes for a buzzing marketplace, with an abundance of auctions at Pickles held throughout June. At this time of year, it’s customary for a spike in buyer interest to occur across car, machinery and recreational items.
While this can make the market more competitive than usual, buyers can navigate sales by turning to Pickles associates across Australia. The Pickles team have a wealth of insight on how best to approach these sales opportunities, and are happy to assist both buyers and sellers.
Vehicle financing in Australia has continued to offer competitive loan rates throughout the 21/22 financial year, providing an ideal time for many to jump on the buyers bandwagon. While interest rates have started to incrementally rise off the back of historically low rates, there are still deals aplenty for buyers looking for financing options before making a purchase. By combining your interest in a pre-tax purchase with Pickles financing service, you can make smart economic choices before June 30.
Right now is a great time to trade-in your vehicle! With the extremely high demand for used cars in Australia, you can easily obtain a great price on your current car to help your next big vehicle purchase. Used assets are currently selling for near-new prices, depending on the age and condition of the vehicle. This is because the Australian vehicle market is experiencing an extreme lag in the production and delivery of new cars due to COVID setbacks. For those looking at trading-in, Pickles offer trade-in services as well as sales, so can take care of the whole process from start to finish.
- Tax deductions
For buyers who use a vehicle or industrial equipment in a business capacity, nabbing an asset before EOFY can mean an instant business write-off. These tax deductions only come around once a year, so purchasing right before tax time can expedite the process of receiving these government incentives. While there are few items that are 100% tax deductible, there are a range of assets that are eligible for partial returns. Small items, from tools and blowers up to large equipment like mowers, can offer a deductible portion of the asset based on depreciation.
Check out our information on how to take advantage of tax time for your vehicle or industrial purchases.
- Lack of assets on the market
The asset and material shortage in Australia isn’t expected to ease until sometime in 2023. This lack of available items is only anticipated to become more severe. This makes the end of the 21/22 financial year the ideal time to capitalise on tax returns, when considering that waiting another year will only take you further from deductions and plateaued prices.
The asset bubble in Australia has an unpredictable forecast for the 22/23 financial year. While data indicates that prices are beginning to even out, there is no way to concretely predict the prices of assets in the next year.
Ready to get bidding? Check out the range of sales available throughout June.