No new car smell: 25% of Australians will never buy a new vehicle
A new set of wheels isn't on the horizon for many Australians, according to new research by Finder.
A nationally representative survey of 1,003 respondents in September 2021 revealed 1 in 4 (25%) Australians don't ever plan on getting a new car.
That equates to 4.8 million people who will never own a new set of wheels again.
On the other hand, 1 in 3 (36%) will look to get a new set of wheels in the next 2 years, while 21% will wait for 2-5 years.
A further 17% said they don't plan on getting a new car for at least another 5 years.
Toyota recently announced it was forced to make cuts to its global vehicle production after a shortage of certain parts caused by the spread of COVID-19.
Taylor Blackburn, personal finance expert at Finder, said due to the current shortage of cars, it's likely people are less inclined to be planning their next car purchase any time soon.
"A shortage in the supply of cars and a production slow-down has meant drivers are at a risk of being without wheels if they sell their car too soon.
"With waiting times of up to a year, the problem is no longer deciding between 2 colours.
"Shoppers should be prepared to compromise as the shortage limits options," he said.
A Finder survey from January 2021 shows just how much consumers' attitudes towards new cars have changed.
The January survey revealed that just 13% said they didn't ever plan to buy a new car.
Blackburn said those who are in the market for a new car should be sure to compare their different finance options.
"Shopping around for financing could help you save hundreds, if not thousands of dollars, over the life of your agreement.
"With interest rates so low, if your car loan has a 5 or more in front of it, you could be getting a better deal.
"But don't just shop on rate alone – compare fees like the application fee and monthly service fee. High fees can make a low rate loan cost more than one that is slightly higher," Blackburn said.
Baby boomers (40%) are more inclined to hold onto their wheels for good, compared to gen Z (11%), most of whom (26%) are planning to get a new car in the next 1-2 years.
|How soon do you plan to get a new car?|
|Within the next 6 months||4%|
|In 6-12 months||12%|
|In 1-2 years||20%|
|In 2-5 years||21%|
|In more than 5 years||17%|
|I don't ever plan to get a new car||25%|
|Source: Finder survey of 1,003 respondents, September 2021|
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