Press Release

For immediate release

Information verified correct on October 28th, 2016

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 (part of the 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

  • 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 has more than doubled in December 2014 compared to December 2013

Comments from Michelle Hutchison, Money Expert from

"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 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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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's review pages for the current correct values.

About is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using or to find better (Source: Google Analytics).

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