Transport ‘necessary’, but ownership is not: report

Nearly half of consumers agree having access to transportation is necessary but owning a vehicle is not, according to a Cox Automotive report.

Four out of 10 consumers have shared this sentiment in the Cox 2018 Evolution of Mobility study, with 83% of respondents acknowledging they own a vehicle to use on a weekly basis.

But the results suggest ownership of a motor vehicle could start to erode as those owned vehicles are only being used 4% of the time, which Cox Automotive says is starting to “chip away” at the traditional possession model of mobility.

According to the study, 55% of generation Z and 45% of millennials agree transport is essential but owning a vehicle in the conventional way is not, highlighting the increase in popularity of mobility services such as Uber, GoGet and CarNextDoor.

Of all consumers taking part in the study, the sum of whom consider owning a vehicle is growing too expensive has increased in the last three years from 42% in 2015 to 48% in 2018.

In metropolitan Melbourne, considered a “high risk zone” by VicRoads which processes roughly 5.6 million registrations annually, vehicle registrations under two tonnes is currently $817.60 per year.

In NSW where the weight of a vehicle determines the rate of registration owners pay, using the Roads and Maritime Services calculator, a private-use two-tonne ute or SUV (classed as extra large) to register from new is over $1700 including stamp duty.

The Cox survey reveals ride-hailing and car-sharing services have become more popular in recent years, but won’t necessarily push vehicle ownership completely aside.

“Nationwide, usage has jumped 17 points to 39% in the last three years,” the survey says.

“Ubiquitous as it may be, though, ride-hailing has not displaced car ownership… Only 54% of consumers are aware [car-sharing] exists,” the survey explains.

Another alternative, subscription services for vehicle usage, also show a stark trend.

“Today, one in four consumers know about it – that’s a much steeper incline of awareness than ride-hailing or car-sharing that have been around for a decade or two,” the survey adds.