- EOFY car sales attract huge buyer interest, but one expert warns that some discounts may be off inflated prices
- Pressure tactics like urgency claims and “limited time” deals can push buyers into rushed, poorly researched purchases.
- Hidden costs and dealer fees can erase apparent savings, making careful research and transparency essential.
June is one of the busiest months for car sales, with dealerships slashing prices to hit annual targets and clear inventory.
New vehicle sales rose more than 6% year-on-year in June 2025, while used car sales surged 10.1% month-on-month, according to the Australian Automotive Dealer Association (AADA).
But that surge in activity may be exactly what creates the risk.
The illusion of a “deal”
Speaking on the Savings Tip Jar Podcast, Peter Willis, director of buying at online used car marketplace Carma, said many EOFY discounts aren’t as generous as they appear.
“There’s a lot of emphasis that’s put on the car sales at the end of the [financial] year and it’s mainly focused around the dealer's intention to clear stock, as much as to be showing some better sales results,” he said.
That pressure to move stock can lead to pricing tactics that make discounts look bigger than they really are.
“We often see there’s some inflated numbers that are then suggesting that the price was maybe too high to start with,” Mr Willis said.
“So then that discount is more just an adjustment back to the real market picture.”
Pressure tactics at play
According to the latest carsales Consumer Sentiment Report, more than one in four Australians deliberately wait for EOFY sales, while 31% of active buyers plan to purchase during the May to June window.
That surge creates a perfect environment for impulse decisions.
“One of the things that people get trapped in is actually going out and buying a car that they might not necessarily have done their research on,” Mr Willis said.
Instead of choosing the right vehicle, buyers can be swayed by the discount itself.
“They’ve seen a $3,000 or $5,000 saving and then that’s driven them to go and make the purchase.”
He also warns that EOFY urgency isn’t just seasonal, but often manufactured.
“We’ve all heard that ‘there’s someone else coming to buy this’… ‘this price is only today’,” Mr Willis said.
These tactics are designed to accelerate decisions, reducing the chance buyers will compare options or investigate the vehicle properly.
“If everything doesn’t line up and you don’t feel comfortable… feel free to walk away,” he added.
Hidden costs can wipe out savings
Even when the sticker price looks attractive, the final bill can tell a different story.
Mr Willis warns buyers to demand full transparency before committing.
“Clear pricing is making sure that at the point of purchase you have the final number, the final figure that you're going to be paying for that car. No service admin, other fees or charges on top of that, ” he said.
Without that clarity, buyers risk agreeing to a price that quietly grows once fees are added.
Why the timing can backfire
Ironically, the same factors that make EOFY popular, such as high stock levels, aggressive sales targets, and heavy marketing, can also work against buyers.
Dealers are focused on clearing inventory before June 30, not necessarily helping customers find the best long-term value.
At the same time, the sheer volume of deals can overwhelm buyers, making it harder to separate genuine value from clever pricing.
Mr Willis said the safest approach for buyers is to resist the rush and focus on fundamentals.
“Make sure that the car was the car that you were earmarking to go and buy, and that the car ticks all those boxes for you,” he said.
That means doing the groundwork before stepping onto a lot, researching prices, checking the vehicle’s history and condition, and insisting on both a proper test drive and an independent inspection.
Above all, it requires resisting the pressure tactics that often accompany EOFY promotions.
While the sales period can deliver genuine discounts, Mr Willis warns that the bigger danger lies in acting too quickly and locking in the wrong purchase.
If the numbers don’t stack up, he says, buyers should be prepared to walk away.
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