Latest automotive industry research reveals that an increasing proportion of customers use finance for vehicle purchasing.
2015 looks to be a record year for the Australian automotive industry despite concerns about the underlying strength of the economy. With interest rates at historically low levels, car ownership is more affordable than ever before. Dealerships are enticing prospective buyers with new model line-ups coupled with after-market offers such as capped price servicing and low interest rate finance.
It is in this market context that the latest edition of our research report, Automotive Finance Insight (AFI) is released. Based on an extensive survey of new and used car buyers purchasing vehicles over $7,500, the research reveals that the use of finance for vehicle purchasing has continued to increase, rising from 41% in 2011 to 49% in 2015.
The segments where the proportion of automotive financing has increased the most are the $20K to $30K and the $50K to $70K price ranges, which respectively now sit at 51% and 64% of total sales.
Among those that choose not to use finance for vehicle purchasing, 57% preferred to save rather than borrow and 49% did not want to pay interest, despite the low interest rate environment.
The research highlights the growing maturity of the Australian automotive finance market and the increased level of competition between traditional banks, car dealerships and other lenders. The full automotive finance research report provides detailed insights about how consumers finance the purchase of vehicles in Australia, their purchasing behaviours and decisions, trends and attitudes regarding automotive finance products and market penetration of the leading finance providers. The report is available to purchase at a cost of $5,950. If you would like a copy, please click here.
About The Survey
The report is based on a nationally representative sample of 1,658 Australian consumers who bought a vehicle costing at least $7,500 since 2013. Of these, 848 respondents did not use finance and completed a short survey and the remaining 810 respondents used finance to purchase their vehicle and completed the full survey about their vehicle and finance purchasing journey.