CAR dealers are expecting a mad scramble as small business owners leave signing up for a new vehicle under the Federal Government's 50 per cent tax break to the last minute.

They have to sign a contract before the December 31 deadline to be eligible for the 50 per cent tax deduction.

Dealers in Cairns say it appears people are going to make a decision just before the deadline.

They must sign a contract within the next 14 days, although the vehicle does not have to be delivered until July 1 next year to reap the full benefits of the concession.

Ireland’s joint managing director Richard Ireland said the scheme was generous and unlikely to be repeated again.

"I doubt they will get a depreciation advantage like this again. It’s a lot of money," he said.

Mr Ireland said buyers needed to discuss the concession carefully with an accountant or a financial adviser to make sure they wisely took advantage of it.

He said many thought the tax break was limited to commercial vehicles such as utilities and vans but it also included passenger sedans and wagons.

Trinity Auto Group Southside general sales manager Simon Wilson said his staff were finding that people had done their homework before coming into the dealership and knew what they were entitled to.

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