Australia’s expensive new car buying habits exposed

New research has uncovered an alarming new trend in vehicle buying habits — and it’s going to cost us in more ways than one.

Australian drivers are looking to supersize their cars.

A new survey by comparison website Finder has found that for new-car buyers, bigger is better.

The research shows more than a quarter of motorists are planning to buy a bigger car in the next 12 months, compared to just five per cent who are looking to downsize.

One in five surveyed said they would buy the same size car again and 50 per cent weren’t planning to buy a new car in the near future.

The Toyota RAV4 is one of the most popular new cars in the country. Picture: Thomas Wielecki.

Bigger cars mean higher costs initially and for the life of the vehicle, according to Finder’s personal finance specialist Taylor Blackburn.

“A higher monthly car repayment isn’t the only upsizing expense you’ll face,” says Blackburn.

“While they can be great for comfort — especially with a larger family — larger cars often cost more to register, insure, fuel and service. Even a car wash can cost you more.”

SUVs often command a several thousand dollar premium on similar-sized hatchbacks.

Mazda’s CX-5 has been a strong seller for years.

One in 10 people said they wanted a bigger car because they were travelling more since COVID closed international borders.

Sales of top-end off-road adventure vehicles such as the Toyota LandCruiser have been particularly strong in the past 12 months.

Sales of the Toyota LandCruiser have skyrocketed recently.

Despite the vehicles $100,000-plus price tag they have been flying off the showroom floors and have regularly been in the top five best sellers the past few months.

There have been incidents of buyers flipping their recently bought LandCruisers online for big profits as supply is failing to meet demand ahead of a new model arriving later this year.

Almost one in five of those surveyed said they wanted a larger vehicle for more space.

The rise of the SUV has seen sales of conventional passenger cars such as hatchbacks and sedans dwindle by comparison.

Big American pick-up trucks are growing in popularity.

So far through the first three months of the year sales of SUVs have jumped more than 19 per cent compared to the first three months of 2020. And sales of passenger cars have fallen by nine per cent for the same period.

Huge American pick-up trucks are also in vogue these days with brand’s such as Ram and Chevrolet finding lots of new fans locally.

Both vehicles are imported from the US and converted to right-hand drive in Australia. They command prices north of $100,000.

Smaller dual-cab utes such as the Toyota HiLux and Ford Ranger are priced from about $50,000.

Originally published as Australia’s expensive new car buying habits exposed