Family-First Buyers to Drive Oz New-Car Market

The demographic group that comes closest to representing the Australian norm on matters of lifestyle, opinions and behavior is expecting to spend more than A$4.6 billion ($4.1 billion) over the next four years on new cars.

Roy Morgan Research says this is more than three times the average and almost A$1 billion ($895.9 million) above the next biggest spenders, the rural families group.

What the research company calls the family-first group is the biggest by both volume and total value.

It includes skilled and semi-skilled workers, office workers and laborers, sales reps and branch managers, teachers, police officers and nurses working eight full hours a day.

They are split between leaders and followers, conservative and progressive, trendy and trend-ambivalent, success seekers and comfort seekers, risk-takers and the risk-averse.

Roy Morgan Research says family-first is the meat and potatoes of Australia’s new middle class, and there are 131,000 of them in the market for a new car in the next four years with an average price intention of A$35,250 ($31,580).

They are most likely to be found in Brisbane, followed by the suburbs of Melbourne and Perth, but are significantly underrepresented in Sydney.

Roy Morgan Research Automotive Group Account Director Jordan Pakes says with a household income marginally below the national average, the family-first segment of the population still represents the greatest combined new-vehicle expected expenditure, thanks to sheer quantity.

“Together the 131,000 of them in the market for a new car are looking to contribute around 6% of the estimated A$81 billion ($72.5 billion) we’ll spend on new cars over the next four years,” Pakes says in a statement.

Almost half of all family-firsts say they need a car that is suitable for carrying children and they are 26% more likely than average to be looking for an SUV.

“Toyota, Holden, Mazda, Ford and Kia top the list of makes they intend to buy,” Pakes says. “The standout brand among family-firsts is Kia, with intention levels more than triple the national average.”