driverless car

Are you ready for the age of the driverless car?

“RIGHT NOW.”

Caps lock and everything, That’s Roy Morgan Research’s statement on when Australians want driverless cars. A press release sent out in April 2017 detailed 51 per cent of men and 41 per cent of women would jump into a driverless vehicle at this very second, if presented with the opportunity.

“This is particularly for younger Australians who increasingly congregate in inner urban areas where car-sharing services and Uber have changed the way Australians view their cars,” said Michele Levine, CEO of Roy Morgan.

It looks like we’re ready for the future, but what does that future look like? And how does that change the car loan landscape?

The implications of a driverless future

An article in Medium, the Hult Business School’s Geoff Nesnow offered a few predictions about a future where driverless cars were the norm. We’d see less mechanics and petrol stations, and far more power stations for charging electric vehicles. Car advertising as we know it would be gone, and Nesnow believes the car finance industry will also see a large decline.

Is this the end for drivers in cars in Australia?

Yes, car insurance, advertising and manufacturing will all completely change over time if the driving aspect of owning a car drops off. But regardless of who is driving, Australians are still likely to want to own their own car.

Australian Bureau of Statistics information from 2016 shows that our national vehicle fleet increased by 2 per cent over the year, with passenger vehicles and campervans performing well.

Even as driverless cars emerge, general ownership continues to grow. We think that means people are still going to need car loans, after all, who wouldn’t want to own a driverless car?

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Safer roads without drivers?

One of the primary reasons for driverless cars is to prevent basic human error. In 2016, the ABC reported that the first driverless vehicle in Australia was ready for the road, and had the backing of the Victorian Government and Transport Accident Commission.

While driverless cars still need to be tested with infrastructure like traffic lights, it’s a huge step forward. The South Australian Government has also funded a number of driverless projects, and The Conversation has noted that progress is underway in determining who exactly is legally responsible for any accident that could involve a driverless vehicle.

Minimised accidents, debates over responsibility for vehicle crashes, no car advertising, and less mechanics, the world is changing as we stare at it. While you can’t jump into a driverless car just yet, you can come and talk to us about financing and getting behind the wheel yourself.



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