Australian car buying habits revealed
Consumers tastes change all the time, and they are the driving force of an industry. The automotive sector is no exception to this, and must constantly anticipate and change in order to meet the demands of Australian car buyers. It’s particularly important for those working in car dealerships to be aware of these trends, giving them an advantage when it comes to securing a role in the industry.
So what are some of the biggest trends shaping automotive right now?
Average earners will spend around 28 per cent of their yearly income on a new car, while higher earners will spend 20 per cent.
What are people willing to spend?
According to a study conducted by Roy Morgan Research, the amount that Australians are willing to spend on a car is connected with their income. The average yearly household income is around $133,000, and those that earn this amount typically spend about 28 per cent of this on a new vehicle. Roy Morgan Research’s Industry Director for Automotive, Jordan Pakes, says that meanwhile, people that earn a higher annual amount are willing to spend more money, but proportionally less of their income.
“Almost 1 in 6 intenders are in homes earning $200,000 or more – and although they expect to spend around $12,000 more on the next car on average, this is actually less than 20 per cent of yearly earnings,” he said.
Mr Pakes adds that there are some exceptions to this rule. It’s important for those in the automotive industry to do thorough research when building and selling cars.
“Household income is only one factor when it comes to deciding what to spend on the next new car. Some lower income homes, such as retirees, may often have large nest eggs, while others on $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.”
Top features buyers are looking for
Of course, buyers are influenced by more than just price when it comes to purchasing a new car. A recent insight from Nielsen revealed the factors that influence car owners when looking to a new vehicle:
- To own a car that will illustrate personal success (45 per cent)
- To upgrade to a better car when financially viable (85 per cent)
- To have a reliable car to merely get where they want to go (77 per cent)
- To enjoy driving (75 per cent).
Equipped with this knowledge, the Australian automotive industry will be able to understand what is driving car sales and better accommodate the desires of customers.
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