A new survey insights from LoopMe, a brand-focused mobile advertising platform, revealed that almost a third (31 per cent) of respondents view price as the most important factor when buying a new car, as the country experiences its largest rise in inflation for decades.
LoopMe surveyed 1774 consumers in Australia on 3-6 May 2022 to understand intent to buy a new car. It also analysed the type of vehicle consumers have or want, their preferred automotive brand and what matters most when buying a car.
Only a fifth (20 per cent) of Australian consumers are considering buying a new car within the next two years, while 45-54 and 55-64 year olds are most likely to buy a new car every one to three years.
Second to price, 30 per cent of respondents mentioned safety as the top consideration when choosing a new car. This is becoming increasingly urgent following reports that Australia’s car safety standards are lower than those of other countries, with some regions calling for improvements to road safety. Safety is most important to women, while price is the top concern for men.
Interestingly, of the 1,774 consumers surveyed, 44 per cent have, or would like, an SUV or midsize SUV, and this is more common among 55-64 year olds. This could be due to purchases made before the financial crisis or wishful thinking in the current climate. Meanwhile, 31 per cent of respondents want or have a sedan, and over a third (35 per cent) prefer Toyota, a brand that has long been Australia’s passenger vehicle of choice. Toyota is most popular among 18-24 and 55-64 year olds, cementing its status as a reliable, intergenerational brand.
When it comes to finding car information, almost a third (31 per cent) use a car dealer, which is the top source for women. Over a fifth (21 per cent) use carsales.com.au to find details, with car brand websites most popular among men.
“The data suggests that the cost of living crisis is affecting intent to buy cars in Australia,” said Sarah Rew, senior director, global marketing at LoopMe. “However, the higher number of SUV ownership among 55-64 year olds, along with their frequent new car purchases, implies they have more disposable income to play with than younger groups. Car brands may have to reconsider their pricing structure if they want to continue appealing to cash-strapped audiences. They may also have to better-optimise their advertising campaigns to increase their relevance to target segments.”