More Australians Putting New-Car Purchases on Hold

Australians’ love affair with new vehicles is continuing to cool with a new survey showing the number planning to buy a new car in the next four years has slumped to 2.07 million, a drop of more than 400,000 since May.

Roy Morgan Research says its survey results follow last month’s finding that the number of Australians intending to make a new-car purchase in the next four years slipped to its lowest point since November 2012.

Now, it says, new-car-buying intention also has slumped further among people planning to buy a new car in the next 12 months, falling from 608,000 in July to 523,000 in August.

Roy Morgan Research automotive industry director Jordan Pakes says consumer confidence has begun to stabilize in recent weeks, but this has not yet affected new-car-buying intentions.

“Long-term intention now sits at its lowest level since August 2011, while short-term intention hasn’t been this low since February 2010,” Pakes says. “The federal budget in May has certainly impacted peoples’ economic optimism, and ongoing international uncertainty only serves to heighten this sense of gloom.”