About the study
The cost of buying a new or used car has risen sharply in Australia in recent years. Despite the range of incentives available for EV drivers in particular, buying a car is still as big a financial commitment as it's ever been.
Novated Lease Australia surveyed 1,010 Australians to gauge if, and how, they are willing to save on car purchases in the 2024 financial year.
The pool of survey respondents matches the age and geographical spread of the Australian population.
When looking to buy their next car, what are Aussies willing to do to cut purchase costs?
Novated Lease Australia presented survey respondents with a list of 10 cost-cutting measures when buying a car and asked whether they would do any of the following to cut purchase costs.
The majority (92 per cent) of respondents would cut costs in multiple ways – with only 8 per cent saying they are happy to pay full price. (Just 5 per cent indicated they do not drive.)
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- 40% would negotiate on the RRP of the car purchase price.
- 31% would buy a second hand car.
- 27% would only buy a car on sale, which means they may be buying the previous year’s model.
- 25% won’t pay for extra car features.
- 24% would buy a demo rather than a new car.
- 24% would buy a smaller car.
- 18% won’t buy a premium model in the range that they want.
- 18% would buy a cheaper car brand.
- 11% would buy a less popular colour.
- 8% would get a novated lease through a salary sacrifice arrangement with their employer – which would save them tax, car purchase cost, and car running costs.
When you’re next buying a car, will you do any of the following to cut costs? By gender.
Novated Lease Australia found that a higher proportion of female than male survey respondents would consider more ways to cut a car purchase cost. Specifically:
- 29% of female respondents would rather buy a demo car, compared with 18% of male respondents who said the same.
- 31% of female respondents would only buy a car on sale, compared with 22% of male respondents who said the same.
- 35% of female respondents would buy a second-hand car, compared with only 26% of male respondents.
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| Responses | Male (%) | Female (%) |
|---|---|---|
I will buy a smaller car | 23 | 25 |
I won’t buy a premium model in the range that I want | 18 | 18 |
I will buy a cheaper brand | 19 | 18 |
I will negotiate the cost | 38 | 41 |
I won’t pay for extra car features | 21 | 28 |
I will buy a less popular colour | 8 | 15 |
I will buy a demo rather than a new car | 18 | 29 |
I will only buy during sales, which means I may be buying the previous year’s model | 22 | 31 |
I will buy second hand | 26 | 35 |
I would get a novated lease through my employer through a salary sacrifice arrangement – which would save me tax, car purchase cost, and car running costs. | 9 | 7 |
When you are next buying a car, will you do any of the following to cut purchase costs? By age.
Across the age groups, a higher proportion of under-30s (38 per cent) would buy a second-hand car to pay less. This compares with:
- 31% of 31-50s.
- 27% of over-50s.
Forty-four (44) per cent of over-50s would negotiate the purchase price of a car, compared with:
- 39% of 31-50s.
- 33% of 18-30s.
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When you’re next in the market to buy a car, will you do any of the following to cut purchase costs? By State.
Across the states, West Australians are more likely to do the following to reduce their spend on a car:
- 30% will only buy a car during sales.
- 38% will buy a second-hand car.
In comparison, South Australians are least likely to make cost-saving decisions. For instance, only 11% said they won’t pay for extra car features. This compares with:
- 27% of NSW respondents.
- 27% of Victorians.
- 25% of Queenslanders.
- 25% of Western Australians.
| Responses | NSW | VIC | QLD | SA | TitleWA |
|---|---|---|---|---|---|
I will buy a smaller car | 26 | 23 | 25 | 23 | 21 |
I won’t buy a premium model in the range that I want | 16 | 21 | 19 | 10 | 13 |
I won’t buy a premium model in the range that I want | 20 | 20 | 18 | 11 | 18 |
I will negotiate the cost | 40 | 42 | 40 | 29 | 36 |
I won’t pay for extra car features | 27 | 27 | 25 | 11 | 25 |
I will buy a less popular colour | 10 | 15 | 10 | 4 | 14 |
I will buy a demo rather than a new car | 22 | 28 | 19 | 32 | 22 |
I will only buy during sales, which means I may be buying the previous year’s model | 25 | 28 | 26 | 16 | 30 |
I will buy second hand | 23 | 33 | 33 | 28 | 28 |
I would get a novated lease through my employer through a salary sacrifice arrangement – which would save me tax, car purchase cost, and car running costs | 5 | 7 | 11 | 7 | 9 |
When you’re next in the market to buy a car, will you do any of the following to cut purchase costs? By State.
When in the market for a second-hand car, how old would Aussies be willing to go?
In Australia, a car shortage bubble has seen prices jump some 30, 40 and even past 50 per cent year-on-year. For instance, a 2012 Mazda CX-5 Maxx that was $14,000 two years ago is now more than $20,000. Novated Lease Australia asked respondents how old they would be willing to go if they were in the market for a second-hand car.
[Novated Lease Australia](/) found the highest proportion of respondents (26 per cent) would be willing to purchase a car between 3-4 years old. This is followed by:
- 17% willing to buy a car that is up to 1 year old
- 17% willing to buy a car that is up to 2 years old
- 17% willing to buy a 5-6-year-old car
- 10% willing to buy a 9-10-year-old car
- 5% willing to buy a 9-10-year-old car
- 4% willing to buy a car that's more than 15 years old
If you were buying a second-hand car, how old would you be willing to go, to afford it? By age
Across the age groups, under-30s adults are most likely to purchase a 3-8-year-old car. Specifically:
- 27% would purchase a car at a maximum age of 3-4 years.
- 21% would purchase a car at a maximum age of 5-6 years.
- 8% would purchase a car at a maximum age of 7-8 years.
Over-50s are more likely to purchase a younger second-hand car. Specifically:
- 22% would only buy a car that is less than 1 year old.
- 20% would purchase a car at a maximum age of 2-3 years.
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If you were in the market for a second-hand car, how old would you be willing to go, to be able to afford it? By State.
Across the states, the highest proportion of respondents most likely to purchase second-hand cars at 5-6 years old are in (22 per cent). This compares with:
- 18% of South Australians.
- 16% of NSW respondents.
- 16% of Victorians.
- 15% of West Australians.
South Australians are most likely to purchase a car that is up to 2 years old (chosen by 22 per cent). This compares with:
- 20% of Victorians.
- 16% of NSW respondents.
- 15% of Queenslanders.
- 15% of West Australians.
| Responses | NSW | VIC | QLD | SA | TitleWA |
|---|---|---|---|---|---|
I would only buy a car that is less than 1 year old | 19 | 17 | 15 | 18 | 15 |
Up to 2 years old | 16 | 20 | 15 | 22 | 15 |
3-4 years old | 28 | 29 | 21 | 16 | 25 |
5-6 years old | 16 | 16 | 22 | 18 | 15 |
7-8 years old | 5 | 5 | 7 | 7 | 8 |
9-10 years old | 10 | 8 | 10 | 12 | 13 |
11-12 years old | 2 | 1 | 3 | 3 | 3 |
12-13 years old | 1 | 0 | 2 | 1 | 0 |
14-15 years old | 0 | 1 | 1 | 1 | 1 |
More than 15 years old | 2 | 5 | 5 | 1 | 4 |
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Written by
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CEO
Bevan Guest
Reviewed by
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Editor
Sean Callery
