More Australians have been buying motor vehicles and applying for car loans than at this time last year, with more money expected to be spent on cars in the year to come.
According to the latest Commonwealth Bank Household Spending Intentions (HSI) series, motor vehicle spending jumped higher in March 2021 compared to March 2020, both in terms of motor vehicle purchases and motor vehicle loan applications.
These findings are in line with figures from the Federal Chamber of Automotive Industries (FCAI), which found that vehicle sales in March 2021 were up 22.4 per cent on sales in March 2020.
CBA forecast that motor vehicle spending is expected to further improve, thanks to an improving housing market leading to increased household wealth, in turn leading to increased demand for new or used cars.
Home buying spending intentions were found to have hit a new series high in March 2021. According to CBA, residential property prices in Australia are expected to be up 8 per cent in 2021 and 6 per cent in 2022.
The report also found that other factors supporting an improvement in motor vehicle spending intentions included the changing use of public transport, supply shortages and changing patterns of work.
If you’re in the market for a new or used car, it’s important to consider the interest rates, fees, features and benefits of car loans from a variety of different lenders before you sign on any dotted lines. Try to choose a car loan (and a car) that will suit your personal and financial needs, both now and in the future.