For many Australians, 2026 looks like an unusually competitive time to shop for a new car.
June delivered a record 140,058 vehicle sales, while July produced Australia’s strongest July result on record.
But record sales do not automatically mean everyone should buy now.
A better question is:
Does buying a new car now make financial sense for your circumstances?
Quick Answer: Is 2026 a good time to buy a new car?
It can be.
Buyers currently benefit from:
- More competition between brands
- Growing EV and hybrid vehicle choice
- Frequent manufacturer incentives
- More affordable electrified vehicles
- Increased model variety
- EV FBT Exemption for EVs up to $91,661
However, interest costs, depreciation and your existing vehicle’s condition can matter more than broader market conditions. Before committing, it’s worth comparing the purchase price with different car finance options and the ongoing cost of owning the vehicle.
Why is competition helping buyers?
The gap between established and challenger brands has narrowed dramatically.
In June, BYD came within 243 vehicles of Toyota, while brands including Geely and Chery continued gaining volume.
That competition can encourage:
- Sharper drive-away pricing
- Better equipment
- Longer warranties
- Promotional finance offers
- Faster model updates
This gives buyers more choice when comparing vehicles. Fingo’s vehicle sourcing and car buying support can also help buyers compare vehicles and navigate dealer pricing before deciding how to finance their next car.
Is now a particularly good time to consider an EV?
For some buyers, yes.
EV sales represented 21.7% of the market in July 2026, with 23,510 battery-electric vehicles delivered.
There are also more EVs available across different price points than there were only a few years ago.
But before buying, compare:
- Home charging access
- Real-world range
- Public charging availability
- Insurance
- Battery warranty
- Depreciation
- Finance costs
Eligible employees should also consider whether an EV novated lease changes the ownership calculation. You can use Fingo’s Novated Lease Calculator to estimate the potential costs based on your vehicle, salary, lease term and annual kilometres.
Should you wait for EOFY to buy?
Not necessarily.
EOFY can be competitive because manufacturers and dealers often chase sales targets, but discounts can appear throughout the year.
Good deals can also appear when:
- A model is being replaced
- A manufacturer has excess stock
- A new variant arrives
- A dealer needs to clear demonstrators
- A brand is trying to grow market share
The actual drive-away cost matters more than the promotional label attached to the offer.
Is buying an outgoing model a bad idea?
Not always.
An outgoing model can provide good value if:
- The discount is substantial
- You plan to keep the car long term
- The current specification meets your needs
Waiting may be better if:
- A major redesign is about to arrive
- New safety technology matters to you
- Resale value is a priority
- The incoming model has substantially better efficiency or range
Should you buy new or keep your current car?
This is one of the most important comparisons.
Keeping your current car avoids:
- New finance
- Immediate depreciation
- Dealer and transaction costs
But an ageing vehicle may require:
- More fuel
- More maintenance
- Repairs
- Tyres
- Unexpected downtime
Compare the actual annual cost of keeping your existing vehicle with the cost of replacing it.
How should you compare finance offers?
Do not judge an offer by the weekly repayment alone.
Compare:
| Finance Factor | What to Check |
|---|---|
| Purchase price | Actual drive-away cost |
| Interest rate | Cost of borrowing |
| Establishment fees | Upfront finance charges |
| Ongoing fees | Monthly or annual fees |
| Term | Longer terms can increase total interest |
| Residual / balloon | Amount still owing at the end |
| Total payable | Best measure for comparing finance |
A lower repayment does not necessarily mean a cheaper deal.
Is a novated lease worth comparing?
For eligible employees, yes.
A novated lease may allow vehicle finance and eligible running expenses to be packaged through salary.
Depending on the arrangement, these can include:
- Registration
- Insurance
- Servicing
- Maintenance
- Tyres
- Fuel or eligible charging expenses
Tax treatment differs depending on the vehicle and individual circumstances, so compare the total cost rather than focusing only on potential tax savings.
Run the Numbers Before You Buy
Use Fingo’s Novated Lease Calculator to estimate how your chosen vehicle, salary, lease term and annual kilometres may affect your repayments.
When does buying now make sense?
Buying now may make sense if:
- Your current car needs replacing
- You have found the right vehicle
- The total cost fits comfortably within your budget
- You have compared multiple dealers and finance options
- You understand the vehicle’s running costs
- You expect to keep the car for a reasonable period
- You are considering a high end EV
When could waiting make more sense?
Consider waiting if:
- Your existing car still meets your needs
- You are buying mainly because of a promotion
- The finance rate is expensive
- A major model update is imminent
- You are uncertain about your employment or income
- You have not compared the total ownership cost
Frequently Asked Questions
Is EOFY the best time to buy a car?
EOFY can produce attractive offers, but competitive deals are available throughout the year.
Is it better to buy an EV now or wait?
That depends on your needs. EV choice is expanding quickly, but buyers should still compare price, range, charging, insurance and depreciation before purchasing.
If you’re considering a high-end EV, now may be a good time to make the move, as the current EV FBT exemption is set to change from 1 April 2027.
Under the proposed changes, EVs priced above $75,000 but below the applicable Luxury Car Tax (LCT) threshold for fuel-efficient vehicles will receive a 25% FBT discount rather than the current full exemption.
Therefore, purchasing a new high-end EV sooner may give you a better chance of taking delivery by 31 March 2027 and potentially benefiting from the current full FBT exemption.
Should I buy outright or finance a new car?
It depends on your available cash, borrowing costs and financial priorities. Compare total costs rather than repayments alone.
Can a novated lease make a new car cheaper?
It can reduce the overall cost of a new car for eligible employees, although the savings will depend on factors such as your salary, vehicle choice, finance terms and running costs.
The potential savings can be even greater with an eligible EV, thanks to the EV FBT exemption, which can make novated leasing an especially tax-effective way to purchase and run an electric vehicle.
Conclusion
2026 is a competitive time to be shopping for a new vehicle, but there is no single “best” month to buy.
The best time is when the vehicle fits your needs, the price is competitive and the total ownership cost makes sense.
More brands, more EVs and more finance choices give Australian buyers greater flexibility, but they also make careful comparison more important than ever.
For those considering a high-end EV, the window is narrowing to take full advantage of the EV FBT exemption in its current form, so timing your purchase and delivery could make a significant difference.
Fingo can help make that comparison easier. From sourcing and negotiating your next vehicle to car finance and novated leasing, Fingo provides support across the vehicle journey, helping you understand your options and choose an approach that suits your needs and budget.
