Money Research with Money Matchmaker®
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?
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
Would you buy a car before 2024 if supply chain issues didn’t make it so challenging to bring cars to Australia?
| Response | NSW (%) | 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
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?
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.
Would you buy a used car if the waitlist for a new car was more than 3 months / 6 months / 1 year?
| Response | NSW (%) | 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.
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.
