Australians are less confident about their finances now than they were at the beginning of 2017, according to Roy Morgan Research.
Roy Morgan have released figures showing a drop in the number of Australians intending to buy a new car compared to the start of 2017.
As of May 2017, 2,279,000 Australians intend to buy a new car in the next four years. This is a drop of 8.5 per cent from 2,490,000 in February.
Consumer confidence is often a key indicator of car buying intention, according to Roy Morgan Research. This drop mirrors a decline reflected in the ANZ-Roy Morgan Consumer Index.
Rob Heneghan, Automotive Account Manager at Roy Morgan Research has said in a statement that “one of the biggest drops in buying intention has been amongst the most affluent groups”.
“This affluent group traditionally makes up the largest portion of new car intenders, with a strong preference for Japanese brands such as Toyota, Mazda and Subaru.
“The recent downturn has been reflected in lower numbers of passenger and commercial vehicles intenders,” said Rob Heneghan.
However, it’s not all bad news for the car industry. SUV intention has continued to grow by 30,000 intenders since January.
“If Australia’s love affair with SUV’s continues at this pace, we could see SUV’s overtaking passenger vehicles as the nation’s favourite vehicle, within the next 12 months,” said Rob Heneghan.
Source: Roy Morgan Research