After months of poor performance in the new car market, a new Roy Morgan Research survey indicates the problem is getting worse.
According to the research, the number of Australian planning to purchase a new vehicle by 2018 has dropped to its lowest level since November 2012.
This could be a concern for many manufacturers, but good news for those selling their used cars. When confidence in the new car market has fallen, it usually points towards an increase of consumer interest in buying second hand vehicles rather than shelling out for a brand new model.
In May, there were approximately 2.17 million potential new car buyers in the market. However, this has dropped to 2.07 million in August and there are no signs of this trend abating.
Industry Director of Automotive at Roy Morgan Research, Jordan Pakes explained buying intentions have also taken a hit in recent months. The survey results reveal that the number of people committing to purchasing a new car in the next year has fallen from 608,000 in July 2014 to 523,000 last month.
“Despite Consumer Confidence starting to stabilise in recent weeks, this has yet to have an impact on our new car buying intentions,” he said.
“Long-term intention now sits at its lowest level since August 2011, while short-term intention hasn’t been this low since February 2010. The Federal Budget in May has certainly impacted peoples’ economic optimism, and ongoing international uncertainty only serves to heighten this sense of gloom.”
With the new car market continues to take a hit, it could be an idea to consider choosing a vehicle out of the AreYouSelling process. These second-hand vehicles are sold at a competitive price and compare well with the options available from newer models.