Fewer Australian car buyers have decided how they will pay for their next vehicle before starting their search, according to new research from carsales.
The company’s latest Finance & Insurance Consumer Report shows 71% of buyers have decided how they will pay for their car before beginning their search, down from 77% in previous years.
The research, based on responses from 1148 people aged 16 to 70-plus surveyed in September 2025, reveals significant generational differences in how Australians approach car finance and insurance decisions.
Generational divide in finance approach
Gen Z buyers show markedly different behaviour compared to older generations, with half (50%) relying on family to help figure out financing compared to older buyers who are more likely to conduct their own research.
Younger buyers are also more inclined to use cash or savings rather than financing, with 74% of Gen Z intending to pay without finance compared to the overall average of 64%.
Among buyers planning to use finance, 83% have not yet chosen a provider, though Millennials prove the most decisive group with 29% having selected a provider compared to the 17% average.
Insurance decisions delayed further
The research shows 56% of buyers remain undecided on insurance while browsing, with nearly two-thirds not obtaining a quote until after their first enquiry.
Gen Z buyers are least likely to have decided on car insurance while browsing at 27%, compared to Baby Boomers who are most likely to have made this decision at 45%.
Price pressures continue to dominate insurance decision-making, with 54% of buyers citing insurance premiums as a key factor. The proportion of buyers saying cost influences their car choice has surged to 29%, up from 16% in 2023.
Bundle products gain appeal
Nearly half of all buyers (47%) find a bundle including finance, insurance and roadside assistance appealing, with particularly strong interest among Gen Z (60%) and women (57%).
carsales Editor Alexandra Lawrence says the data shows car finance and insurance decisions are becoming more complex and often delayed.
“Fewer Australians have settled on how they’ll pay for their car, and many are leaving key decisions like insurance until late in the purchase journey,” Lawrence says.
“This presents a clear opportunity for finance and insurance brands to educate and connect earlier with buyers on their purchase journeys – particularly younger audiences, who often lean on family for guidance or make these decisions later in the process.”
Lawrence says with many buyers navigating these decisions for the first time, trusted advice and clear information can make a significant difference.
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