New research indicates there is a soaring interest in new car purchases in Australia, which is likely frustrated by the global vehicle supply crisis.
Half (51%) of Australian adults would buy a car before 2024 if supply chain problems did not impact stock levels.
This finding comes from a survey of an independent panel of 1018 Australian adults, commissioned by Australian finance platform Money.com.au.
The global automotive industry has suffered severe supply chain disruptions – specifically semiconductor chip shortages which are expected to extend in 2023 and beyond – in the last two years says the finance platform.
It says it is estimated that the world was 2.2 million cars short in the first half of this year, while in Australia new car sales were more than 10% below historical averages for the month.
From the survey, Money.com.au found a higher proportion of younger age groups were in the market for a new car before 2024 – 59% of 18-34-year-olds, compared with 38% of over 50s.
It also revealed two-thirds of Australians (68%) would rather buy a second hand car than sit on a wait-list for a lengthy period. Specifically, 29% said they would buy a used car if the wait-list for a new car was more than three months, 27% would purchase a used car if they had to wait six months for a new one, while 12% would do so if the wait-list was more than a year.
Second hand vehicles in Australia are now 14.2% higher than last year says the finance platform.
A third (32%) of Australians said they are willing to wait as long as necessary to purchase the new car they want.
Money.com.au spokesperson Helen Baker says the survey results echo the sentiment among Australians she speaks to.
“Many of my own clients are willing to wait for a new car, with a significant proportion turning over their cars as frequently as every two to three years, even if they are not in need of an upgrade.
“While the choice to purchase a new vehicle is dependent on one’s financial situation, savings and overall car usage, it is important to remember that it is a depreciating asset,” Baker adds.
“Younger Australians are likely more willing to purchase a used car for this reason, as they may not have the funds built up for a large purchase or are prioritising other purchases or investments, such as their first property.
“During the pandemic, many Australians also likely hit pause on large essential and non-essential purchases. Now that we’re returning to a sense of normalcy, despite rising costs, people are considering those purchases again.”
Baker says she sees a growing trend of individuals, particularly those approaching retirement, seeking large, functional vehicles over luxury ones, including camper vans, as their next significant purchase.
“Many are committing to such vehicles due to a desire to travel around the country now that borders are open and allow for more free movement.”
Click here for full survey results, including age and state breakdowns.
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