Money.com.au Car Loans research & insights

New research from Money.com.au reveals that a car brand’s country of origin matters more to Australians when buying or considering an EV than a petrol car.

The nationally representative survey found the majority of Aussie drivers (54%) say a car manufacturer’s country of origin matters more when purchasing or considering an EV or hybrid vehicle than an internal combustion engine (ICE) model. The remaining 46% say it holds equal importance across both categories.

It comes as Chinese-made EVs surge in popularity, with brands like BYD and MG rapidly growing market share in Australia through competitive pricing. However, debate persists over whether they match the standards of European marques like BMW and Mercedes-Benz, or US brands like Tesla.

Money.com.au’s Finance Expert, Sean Callery, says EV buyers are increasingly using brand origin as a ‘risk filter’ as competition intensifies in the market.

“EVs are still relatively new territory, so Aussie car owners are weighing up risks far more consciously than they do with traditional petrol cars. With less real-world evidence of an EV’s reliability to base decisions on, drivers are particularly looking at the brand’s country of origin, its reputation, and the engineering standards it’s known for. In a market with so many new and unfamiliar players, that distinction really matters,” he says.

“It’s important to discern that an EV brand’s country of origin is not necessarily the country where the car is manufactured. The difference is that people are placing their trust in the reputation behind the badge, rather than where in the world the car is assembled.”

Across generations, Baby Boomers and Millennials were the most likely to say a car brand’s country of origin matters more for EVs than petrol or diesel cars, both at 57%. Gen Z followed at 53%, while Gen X were the least likely to differentiate (47%).

Battery quality concerns top list of EV buyer worries

When asked why they apply tougher scrutiny to an EV brand’s country of origin, drivers cited the following concerns:

Our research found that over half of Australian drivers (52%) would go electric in the next five years, but most will opt for a plug-in hybrid over a battery electric vehicle (BEV).

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New research from Money.com.au reveals which dealership car add-ons Australian drivers most regret buying.

The nationally representative survey of more than 1,000 motorists asked which dealership extras they wish they’d never paid for or regret buying. Extended dealer warranties topped the list, with one in five drivers (22%) citing them as a waste of money, followed by paint protection (20%).

Third on the list was fabric protection (13%), then rust proofing (11%), window tinting (10%), car mats and accessories (10%), dash cams (5%), capped-price servicing (5%) and dealership roadside assist (4%).

Money.com.au’s Finance Expert, Sean Callery, says car buyers often get swept up in the excitement of a dealership purchase and agree to extras they don’t need.

“When you’re signing on the proverbial dotted line for a new car at the dealership, it’s easy to get caught up in the bells and whistles and find yourself nodding along to every extra on the sales checklist. But many of these add-ons simply don’t stack up over the long term because they’re either overpriced compared with what you can buy independently or provide little real protection,” he says.

“Some add-ons like paint or fabric protection, window tinting and dash cams are usually offered at the time of sale with a hefty mark-up, yet the same or even better-quality products are widely available in the aftermarket at a lower cost.”

The survey also found that one in ten Australians (10%) used the dealer’s car finance for their most recent purchase.

“Again, that’s something to weigh carefully. Dealer finance can seem convenient in the heat of the moment, but it’s absolutely worth taking the time to check how the interest rate and fees compare with car loans from a bank or specialist lender,” says Sean.

Generational split on worst dealership car add-ons

According to the survey, Millennials (20%) and Baby Boomers (28%) were most likely to nominate extended dealer warranties as the car add-on they regret buying.

Meanwhile, Gen Z drivers (20%) and Gen X (24%) were more likely to cite paint protection as the worst dealership extra.

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New research from Money.com.au reveals that over half of Australian drivers (52%) would go electric in the next five years, but most will opt for a plug-in hybrid over a battery electric vehicle (BEV).

The nationally representative survey of more than 1,000 Australian drivers found that, among those looking to switch away from petrol or diesel, 35% would choose a plug-in hybrid, while only 17% would go fully electric. Just 3% of Aussies already own a fully electric vehicle or hybrid.

Money.com.au’s Finance Expert, Sean Callery, says hybrids are the natural progression for many Australians before making the jump to a fully electric vehicle.

“While the majority of Australian drivers may be in an electric vehicle by 2030, it’s more likely to be a hybrid, at least until the price of fully electric vehicles drops to more affordable levels and confidence in battery performance improves. EV costs and range anxiety remain the two biggest concerns among the drivers we surveyed," he says.

"Hybrids also offer more model choice across manufacturers, particularly among the brands people are likely to be most familiar with, so buyers can more easily find something that suits their budget within that segment compared to fully electric vehicles."

Younger Aussies lead the shift to electric, but prefer hybrids

While Gen Z are the most likely to buy an electric car in the next five years (58%), they are also the most likely to opt for a plug-in hybrid (42%). This compares to 36% of Millennials and 33% of both Gen X and Baby Boomers who would choose a hybrid.

Meanwhile, Gen X are the most likely to buy a BEV in the next five years (23%), followed by Millennials (20%), with only 16% of Gen Z and 11% of Baby Boomers saying the same.

EV hesitation: Cost and battery worries top the list

On the flip side, almost half of Aussie drivers (45%) say they’ll stick with a petrol or diesel car in the next five years.

The top reasons for avoiding an EV are:

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New research from Money.com.au reveals that 65% of Australian drivers would buy their current car again — either the same make, model, or both.

The nationally representative survey also looked at which car brands are most popular among drivers who are satisfied enough to repurchase the same car. Toyota was the most common brand among satisfied drivers (19.2%), reflecting its overall market position, while Mazda (12.8%) and Hyundai (11.4%) punched above their weight in customer loyalty relative to their brand footprint in Australia.

On the other hand, Ford (4.4%) underperformed with a lower market share among satisfied customers versus its overall position.

Money.com.au’s Finance Expert, Sean Callery, says most Australians are effectively becoming repeat customers when it comes to their car brand.

“Cars are one of the biggest household expenses, especially when purchased through finance and paid off with interest over several years. So the fact that nearly two-thirds of Australians would buy the same car again shows strong confidence in the value and reliability of their vehicle,” he says.

“Aussies want cars that won’t let them down or cost a fortune to run. That’s why brands generally known for value and reliability like Toyota and Mazda are coming out on top. These brands already hold a large share of the Australian market and the data shows that’s unlikely to change any time soon as drivers aren’t just buying them, they’re likely to stay loyal to them.”

Car satisfaction highest among older Australians, survey finds

The nationally representative survey found that car satisfaction was highest among older Australians, with Baby Boomers (75%) and Gen X (64%) the most likely to buy the same make or model again.

Younger generations were slightly less satisfied, with 61% of Millennials and 53% of Gen Z saying they’d repurchase their current car.

1 in 4 Aussies regret their car purchase

On the other hand, the research also found that one in four Australians (26%) regret their car choice. Of those, 11% said their current car didn’t suit their needs, 8% said their car was too expensive to maintain and 7% said they overpaid for their vehicle. About 8% of Australians said they don’t own a car.

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New research from Money.com.au reveals the most common minor driving accidents Australians have had — with many happening in car parks and tight spaces.

The nationally representative survey of more than 1,000 Australians found that one in three (33%) had at least one minor driving mishap in the past 12 months.

Gen Z drivers (60%) were more likely to be involved in a minor driving accident in the past year than any other generation. In comparison, 41% of Millennials, 30% of Gen X, and 19% of Baby Boomers reported a driving mishap in the last 12 months.

The most common driving blunders Aussie drivers admitted to included:

Money.com.au’s Finance Expert, Sean Callery, says minor accidents are often not worth claiming through car insurance.

“If your car gets scratched, dented or bumped, the repair bill is often similar to or even less than the excess you would need to pay to your insurer if you make a claim,” he says.

“Then, there’s the potential premium increases you'd face on next year’s premium after making a claim. It’s not surprising that some drivers choose to wear smaller repair costs to protect their no-claims bonus.

“Fortunately, the survey found that 67% of Australians had no driving mishaps in the past year. Older Australians in particular – Baby Boomers and Gen X – reported fewer incidents than younger drivers, like Millennials and Gen Z.”

Among the less common incidents Aussie drivers reported were:

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With electric vehicle (EV) sales in Australia slowing, new research from Money.com.au reveals nearly a quarter of Australians (23%) believe car insurers should offer additional discounts or incentives to EV drivers to help boost uptake.

Nearly a third of Aussies (31%) only support this if it's backed by data showing EVs are cheaper to repair or pose a lower accident risk. For example, EVs may have better responsiveness than petrol engine cars to prevent collisions.

Meanwhile, nearly half of Australians (46%) oppose EV insurance discounts, and argue that EVs are already subsidised enough through government incentives, like Fringe Benefits Tax (FBT) exemptions on eligible EV models and state-based rebates.

Based on sales trends over the past four years, battery electric vehicle (BEV) sales are projected to reach 126,279 units in 2025 — a 38.3% year-on-year increase. If current growth trends continue, BEV sales could double to 264,256 units by 2030, although growth is expected to slow to a compound annual growth rate of 15.9%.

Money.com.au’s Finance Expert, Sean Callery, says Aussies are split between supporting discounts for green technology to accelerate EV adoption and wanting a level playing field when it comes to insurance pricing.

“We know from various studies that EVs are generally more expensive to insure, but many Aussies still don’t believe insurers should hand out discounts just for driving one, unless there’s clear data showing they pose a lower risk,” he says.

"While insurance costs for EVs are still higher today, they are generally offset by savings on running costs and the growing availability of cheaper finance options through green loans. As competition increases and EV prices continue to fall, the overall cost of owning an electric vehicle should become more accessible to more Australians.”

Electric cars are more expensive to insure than petrol or diesel vehicles because they cost more to buy, repair, and replace. However, some insurers offer discounts to EV owners who limit their annual mileage to 15,000km — a benefit that is also available to other drivers.

EV insurance discounts? Younger Aussies say yes, older generations say no

Younger generations, like Millennials (27%) and Gen Z (26%), are the most likely to support offering insurance discounts to EV drivers to boost uptake.

In contrast, older generations — namely Baby Boomers (57%) and Gen X (49%) — are the most likely to oppose EV insurance discounts, and say EVs are already subsidised enough by governments.

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Around 15% of Australians say car insurance is their most dreaded bill, according to research by Money.com.au. This equates to approximately 2.8 million people nationwide.

Car insurance premiums rank as the third most disliked bill overall, trailing only energy bills (27%) and council rates (18%) among property owners.

Younger Aussies feel the squeeze of car insurance costs

Gen Z (18%) were the most likely to list car insurance as their most dreaded bill, followed by Millennials (17%). Gen X and Boomers were slightly less bothered, with 14% of each group ranking it as their most disliked expense.

Money.com.au’s Finance Expert, Sean Callery, says car insurance is the bill Australians love to hate.

“Car insurance is one of those things you’re relieved to have when you need it, but it’s clearly also a significant source of frustration, particularly for Australians under 25 who are often on lower incomes and just starting their careers, but they face higher premiums due to their risk profile,” he says.

According to quarterly statistics from the Australian Automobile Association (AAA), the average annual cost of car insurance in capital cities is $2,736. Regional households pay slightly less, averaging $2,371 per year.

Cost of car insurance hits NSW households hardest

New South Wales residents (17%) were the most likely to name car insurance premiums as their most dreaded bill, followed by those in Victoria (15%) and Queensland (14%). Residents of Western Australia and South Australia were the least likely to name car insurance as their most disliked expense, at 13% each.

AAA data also shows that New South Wales has the largest cost disparity between capital city and regional households. A typical Sydney household pays $1,386 more per year for car insurance than a regional household.

The latest Consumer Price Index (CPI) from the Australian Bureau of Statistics (ABS) shows that insurance costs rose by 1.1% in the December 2024 quarter and increased by 11% over the past 12 months.

“If you’re not comparing your insurance at least every 12 months, you could be leaving money on the table and letting insurers cash in on your loyalty,” says Sean.

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Nearly one in five Aussie drivers (18%) have paid a traffic fine or infringement notice in the past year, according to a new survey by Money.com.au. This equates to approximately 3.5 million people.

Among those who received a fine, speeding and parking violations were the most common, each impacting 7% of drivers. These were followed by fines for using a mobile phone while driving (2%) and late fees for missing toll payment deadlines (2%). The data includes drivers who’ve paid one or multiple fines in the last 12 months.

Money.com.au’s research also reveals the hefty price that drivers said they paid for flouting common road rules. Fines for using a mobile phone while driving were the highest, averaging $452 — nearly a quarter of the average weekly wage of $1,923 as per the ABS. Speeding fines followed, averaging $333, while late fees for unpaid toll charges came in at $202 on average. Parking fines were the lowest, averaging $142.

Money.com.au’s Finance Expert, Sean Callery, says the financial penalties associated with traffic fines highlight the importance of safe driving and the potential impact on household budgets.

“There are plenty of important reasons to drive safely, not least of which is obeying road rules, but the potential financial impact is a significant factor too. Depending on the state, you could face fines of $1,000 or more for using your phone, while penalties for serious speeding offences can be even higher,” he says.

“While traffic fines can be costly, there are ways to reduce their impact on your household budget. Many states, territories, and local councils (depending on who issued the fine) offer payment plans for road or traffic fines over a certain amount, allowing you to spread the cost over time. You can also often request a payment extension without incurring additional penalties.”

By state, Western Australians were the most frequent speeders, with 16% of drivers receiving a speeding ticket in the past year, while drivers in New South Wales were the least likely to be caught speeding (4%). Western Australians also received the highest number of parking fines (13%), whereas South Australians had the fewest (4%).

Across generations, Gen Z are the most likely to receive a parking ticket (12%), while Millennials are more prone to speeding fines, with 7% getting caught for having a lead foot.

The majority of Australians (86%) managed to avoid fines in the past 12 months.

Aussies travelling or hitting the road during Christmas and New Year are being urged to drive responsibly and stay vigilant to avoid fines dampening their festive season. Double demerits will be enforced in some states during the holiday period.

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