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What proportion of Australians are in the market for a new car – and will they turn to the used-car market in the current supply chain crisis?

A Money.com.au Study August 2022

About the study

Amid global supply chain issues impacting the production of vehicles, Money.com.au commissioned a survey of an independent panel of 1018 Australians to determine the level of demand for new cars by 2024. Respondents were also asked if they were willing to wait for a new car, or would rather compromise by buying a second-hand car.

The pool of survey respondents matches the age and geographical spread of the Australian population.

What proportion of Australians would buy a car in the next two years if the supply chain challenges weren’t an issue?

Money.com.au asked Australians whether they would buy a car before 2024 if there were no production delays and therefore no car shortages.

  • Half (51 per cent) said yes.

Would you buy a car in the next 2 years if the supply chain issues didn't make it so challenging to bring cars to Australia?

Would you buy a car in the next two years, if the supply chain issues didn't make it so challenging to bring cars to Australia?

What proportion across the States would buy a car in the next 18 months?

Across the States what proportion of Aussies would be buying a car in the next 18 months:

  • NSW - 53 per cent
  • Victoria and Queensland - 52 per cent
  • Canberra - 50 per cent
  • South Australia - 44 per cent
  • Western Australia - 41 per cent
Energy information for NSW with Money Matchmaker

Would you buy a car before 2024 if supply chain issues didn’t make it so challenging to bring cars to Australia?

ResponseNSW (%)VIC (%)QLD (%)SA (%)WA (%)ACT (%)

Yes

53

52

52

44

41

50

No

47

48

49

56

59

50

Which age bracket is most likely to buy a car in the next 18 months?

A higher proportion of younger Australians were more likely to buy a car in the next 18 months if supply chain issues weren’t a factor.

  • More than half (59 per cent) of 18-34-year-olds
  • 58 per cent of 35-49-year-olds
  • 38 per cent of over-50s
Millenial age group

Would you buy a car in the next 2 years if the supply chain issues didn't make it so challenging to bring cars into Australia?

Would you buy a car in the next 2 years, if the supply chain issues didn't make it so challenging to bring cars into Australia?

What proportion of Australians would buy a used car in the event of a lengthy waitlist for a new one?

Money.com.au sought to discover how long Australians were willing to wait for a new car before turning to the used-car market.

Respondents were asked whether they would buy a used car if the wait list for a new one was more than three months, six months or a year. Or were they willing to wait for as long as possible for a new vehicle?

  • More than a quarter (29 per cent) of respondents said they would buy a used car if the waitlist was more than three months
  • 27 per cent would purchase one if the waitlist was more than six months
  • 12 per cent if it were more than a year
  • Nearly a third (32 per cent) revealed they would wait as long as possible for a new car.

Note used car loan interest rates for used cars are generally higher, meaning there is potentially additional finance cost for consumers who can't wait for a new car to arrive.

Would you buy a used car if the waitlist for a new car was more than 3 months / 6 months / 1 year?

Would you buy a used car if the waitlist for a new car was more than 3 months/ 6 months/ 1 year?

Which State would wait as long as neccessary?

South Australians are more likely to prioritise a new car and wait as long as necessary:

  • 37 per cent of respondents in that State are willing to wait it out.

In comparison:

  • 33 per cent of Victorians and ACT residents,
  • 32 per cent of Queenslanders,
  • 31 per cent of NSW residents, and
  • 24 per cent of Western Australians are willing to wait it out.
Energy in SA with Money Matchmaker

Would you buy a used car if the waitlist for a new car was more than 3 months / 6 months / 1 year?

ResponseNSW (%)VIC (%)QLD (%)SA (%)WA (%)ACT (%)

Yes, if the waitlist was more than 3 months

30

24

28

34

34

33

Yes, if the waitlist was more than 6 months

29

26

28

21

34

25

Yes, if the waitlist was more than 1 year.

11

17

12

8

7

8

No, I would wait as long as necessary for the new car I want.

31

33

32

37

24

33

Which age bracket is most likely to wait as long as neccessary?

Older Australians are also more likely to prioritise a new car despite long wait times – by a significant margin.

  • Half (49 per cent) of over-50s would wait as long as necessary for a new car, compared with
  • 27 per cent of 35-49-year-olds, and
  • 21 per cent of under-35s.
Over 50s

Would you buy a used car if the waitlist for a new car was more than 3 months / 6 months / 1 year?

Would you buy a used car if the waitlist for a new car was more than 3 months/ 6 months/ 1 year?

How Australians are choosing to finance their cars

Most Australians use finance, with a car loan being the most common option.

However, with the recent fringe benefits tax (FBT) legislation change for electric cars, more Australian employees are choosing a novated lease.

Business owners tend to use business car loans or a chattel mortgage.

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