Media Release

News Update: Surge in Australians borrowing money for a new car

  • The number of Australians taking out car loans more than doubled in December
  • While number of cars sold drops just 1%
  • Car sales and car loans expected to increase

January 19, 2015, Sydney, Australia – Following the latest Australian Bureau of Statistics (ABS) data of sales of new motor vehicles, released today (January 19, 2015), one of Australia's biggest comparison websites finder.com.au/car-loans (part of the finder.com.au network) has uncovered an interesting trend where more Australians are borrowing money for a new car.

While the number of new vehicles purchased in December 2014 was slightly lower than December 2013 (seasonally adjusted), the number of Australians taking out car loans has more than doubled!

More findings by finder.com.au/car-loans:

  • There were 94,903 new vehicles purchased in December 2014
  • December 2014 was the 13th highest month of new car sales in the past 2 decades (since 1994)
  • 1% fewer new cars sold in December 2014 compared to December 2013
  • However there were 20% more new cars sold in December 2014 compared to December 2004 and 86% more than December 1994
  • The number of Australians taking out a car loan through finder.com.au/car-loans has more than doubled in December 2014 compared to December 2013


Comments from Michelle Hutchison, Money Expert from finder.com.au/car-loans:

"It's interesting to see that the number of new cars sold has remained almost the same while the number of loans taken out to buy a new car has doubled on finder.com.au/car-loans. This shows that the desire for a new car has outweighed affordability of buying one outright for many Australians.

"There's a real love-affair between Aussies and their cars and it's sad to say that even if people can't afford one they will buy one using credit such as a car loan.

"What's more concerning is that we expect the number of car sales and car loans to increase as fuel prices have fallen. For instance, unleaded petrol has dropped $0.11 since December to $1.09 per litre (source: MotorMouth, based on December average price of 124.8 cents across five major capital cities).

"The problem here is that interest rates are expected to rise this year, which means the days of cheap borrowing and lower living expenses are fading fast.

"If you're looking to buy a new car, make sure you buy within your budget and factor in a buffer for rising fuel prices as well as interest rates."

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For further information

Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About us

More than 3 million Australians turn to finder.com.au every month to help them save money, time, and make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by two Australians Fred Schebesta and Frank Restuccia. Since launching in 2006, we’ve helped our users make more than 17 million decisions.

We continue to expand and launch around the globe, and now operate in the United States and United Kingdom.

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