Australia’s car market just keeps on rising

Last year we set new records for buying cars and 2017 is set to be more of the same. Roy Morgan Research recently released the numbers on how many Australians intend to buy a vehicle in both the next six months and next four years with some impressive results.

That means we could have more people than ever looking for the perfect car loan to get them on the road – let’s break down just what those volumes are.

Intention to buy reaches a two-year peak

Since around mid-2015, the number of Australians intending to buy a vehicle has steadily increased. Even between February this year and the end of 2016, Roy Morgan recorded a 50,000 increase in people ready to make a purchase in the next six months – bringing us to a total of 618,000.

As for the next four years, more than 2.3 million Australian say they’ll buy a car – the biggest number recorded since the beginning of 2015.

Roy Morgan’s Jordan Pakes says that this increase is due to higher consumer confidence, and is focused around the following brands of car:

  • BMW
  • Volkswagen
  • Mazda

Higher-end buyers are emerging in greater force than those on lower incomes, but everyone is likely to need car finance all the same.

Funding your four wheels with a car loan

Whenever you’re buying a car, you have to make sure your financing is going to work in your favour. The Australian Securities and Investments Commission points out that while many dealers will offer financing on the spot, it may not always be the best deal. You need to line up interest rates and fees with your ability to make repayments over the set term, just as you would with a home loan.

If you’re buying a more expensive car, choosing between a variable or a fixed interest rate can make thousands of dollars of difference to what you pay in the long-term. For newer cars, you may also have the option of using a secured car loan to lock in an even lower interest rate.

Just as there are many options for the car you buy, there are many flexible car loans to get you behind the wheel. If you want to find out more about buying a car or getting the money together to make it happen, talk to the team at Beyond Bank.