Oz Survey Cites Declines in New-Car Purchase Plans

An estimated 2.27 million Australians intend to buy a new car in the next four years, according to a new report by market-research company Roy Morgan.

The leading-indicators report for April is down marginally from the March result of 2.29 million, but remains well above the long-term average of 2.077 million.

Near term, an estimated 706,000 Australians expect to buy a new car in the next year, down 35,000 from the March figure of 741,000, but still exceeding the long-term average of 615,000.

The April declines in both short- and long-term plans to purchase a new car reflect slumping consumer confidence, Roy Morgan spokesman Norman Morris says.

“With interest-rate decisions generally having an impact on consumers’ intentions to purchase new cars, it will be interesting to see what happens in May, given the RBA’s (Reserve Bank of Australia) decision to cut the cash rate by 0.5%,” Morris says in a statement.

“The June reduction of 0.25% by the RBA is also likely to have a positive impact on car buying intentions.”

Nissan, Volkswagen and Subaru showed increases in purchasing intentions in the April survey.

“Among luxury brands BMW (is) performing strongly, with nearly 80,000 people intending to buy a BMW in the next four years.” Morris says. “Much of the brand’s increase can be attributed to the all-new 3-Series, which has shown strong buying intention since its launch in March.”