A new study by Roy Morgan Research has found Australians are less likely to buy a new car than they were 12 months ago, primarily because they are less confident about their finances.
While intention may have gone down recently, the automotive industry still remains in great shape the report noted. An estimated 622,000 Australians plan to buy a new car in the next 12 months.
Overall 2,279,000 Australians intend to buy a new car in the next four years – down from a record of 2,490,000 in February, but almost 15,000 ahead compared to the result last year.
New Car Purchase Intention: May 2017
Commenting on the study, Rob Heneghan, Roy Morgan’s automotive account manager, said: “Australia’s new car market started 2017 by setting new records for the number of new car intenders. Some of that momentum has since stalled – following a decline in the ANZ-Roy Morgan Consumer Confidence index – especially amongst those with plans to buy in the next four years.
“Market analysis using Roy Morgan’s Helix Personas segmentation shows that one of the biggest drops in buying intention has been amongst the most affluent groups – leading lifestyles. This affluent group traditionally makes up the largest portion of new car intenders, with a strong preference for Japanese brands such as Toyota, Mazda and Subaru.
“The recent downturn has been reflected in lower numbers of passenger and commercial vehicles intenders, but SUV intention has continued growing, adding another 30,000 intenders since January. If Australia’s love affair with SUV’s continues at this pace, we could see SUV’s overtaking passenger vehicles as the nation’s favourite vehicle, within the next 12 months.”