Follow the Money, Oz Car-Shopper Survey Suggests

Affluent Australians intending to buy a vehicle in the next four years are looking for top-shelf product.

Roy Morgan Research says its latest survey finds high-income households plan to spend almost A$50,000 ($35,255) on their next new car – about a third higher than the national average of A$36,840 ($25,975) planned by the more than 2.2 million Australians intending to buy a new car in the next four years.

Their average household income is A$133,000 ($93,786) a year and their average anticipated cost of the next car is equivalent to almost 28% of annual earnings.

However, in households earning A$200,000 ($141,032) or more a year, the expected outlay on their next car is an average A$48,830 ($34,438).

The survey results find 12% of all new-car intenders expect to spend less than A$20,000 ($14,103) on their next car and 15% expect to spend $50,000 or more.

But among those in homes pulling in A$200,000 a year, just 4% expect to pay less than A$20,000 for the next car and 30% have a figure of A$50,000 or more in mind.

More than 10% of those in top-income homes plan to spend more than $75,000 ($52,887) on the next car.

Roy Morgan Research Automotive Industry Director Jordan Pakes says almost one in six new-car buyers are in homes earning A$200,000 or more. Although they expect to spend about A$12,000 ($8,460) more on the next car on average, this is actually less than 20% of yearly earnings.

“Of course, household income is only one factor when it comes to deciding what to spend on the next new car,” Pakes says. “Some lower-income homes, such as retirees, may often have large nest eggs, while others on A$200,000 or more a year may have big mortgages and additional family expenses.

“Further analysis of consumer segments will help car manufacturers identify their ideal target markets based on their models’ recommended retail price.”