EOFY and budget pressures reshaping Australian vehicle buying habits

Rising cost-of-living pressures and the lure of end-of-financial-year (EOFY) deals are reshaping how Australians approach vehicle purchases, according to the latest Consumer Sentiment Report from carsales.

The report highlights a significant trend towards delayed decision-making and budget-conscious choices, with 31% of buyers intending to wait for early or peak EOFY offers, while a further 10% are holding out for post-EOFY sales. In total, more than one in four buyers (26%) typically time their purchase around EOFY sales.

Carsales Data Services Director Ross Booth says that economic pressures continue to be a major influence on buyer behaviour.

“The rising cost of living continues to have a firm grip on how Australians buy and sell cars,” Booth says.

“Our data shows that more than half of buyers have had to adjust their budgets, and we are seeing a growing appetite for deals—particularly around end-of-financial-year sales.

“Despite these pressures, price is not the only factor. Quality and reliability remain front of mind for most buyers, and many are still willing to travel significant distances to find the right vehicle. The data shows just how considered the purchase journey has become, and how important it is for both dealers and private sellers to build trust and streamline the path to purchase.”

The report reveals that 59% of buyers have revised their budgets due to inflation and cost increases, with 55% now looking to spend under $30,000 on their next vehicle.

Price remains the top priority for 69% of buyers, followed closely by quality and reliability (65%). The research also shows a lengthening in the purchase cycle, with 49% of buyers now taking a month or more to search for the right car—up from 40% two years ago. Only 24% are ready to buy immediately, compared with 29% in previous years.

The willingness to travel for a deal also remains strong, with 62% of buyers prepared to go more than 150 kilometres to secure the right car.

Search data from carsales indicates consistency in brand and body type popularity year-on-year. Toyota, Mercedes-Benz and Ford remain the top three most searched car brands for May–June 2024, mirroring the same period in 2023.

The most searched models include the Toyota LandCruiser, Toyota Hilux and Ford Ranger. SUVs, utes and sedans continue to dominate in terms of body style preference.