Younger people are less interested in buying brand new cars
Numbers of generation Y and generation Z intending to buy a new car have been steadily declining for the past 15 years.
The latest Roy Morgan figures show that 2.38 million Australians intend to purchase a new vehicle in the next four years. In the three months to November 2017, 142,000 more Australians were intending to buy a new car in the next four years compared to the same period in 2016.
While these figures are a marked increase, being only marginally lower than the 15-year record highs for February 2017, people under the age of 35 are not as keen on new vehicles. For new car buying intentions in the next 12 months, those aged between 14 and 24 showed a decline of 29% and those aged between 25 and 34 showed a decline of 16.8%.
"The under 35 age groups...have shown a long-term decline in new vehicle buying intention levels," said Roy Morgan industry communications director Normal Morris.
"This is likely due to a number of factors including competing priorities in areas such as travel, dining out, housing costs etc. and income-related factors caused by unemployment and longer time spent in higher education. This group has not lost interest in motor vehicles as shown by their very high intention levels to purchase a used vehicle."
Roy Morgan figures show that over time, older Australians are intending to buy new vehicles. Those aged over 65 had the highest increase (250%) of those wanting to buy a new car in the next four years since 2002. This was followed by those aged 50 to 64, who, with an increase of 36% since 2002 now account for 29.8% of those intending to buy a new car in the next four years.