Aussie car buying habits have changed due to COVID-19

New research shows that Aussies still want to buy a new car in 2020, but COVID-19 has had a massive change on which cars they’ll buy.

Aussies are still planning on buying new cars despite the ongoing coronavirus crisis.

New research from Dynata’s Global Automotive Trends report shows that there has been only a slight dip in the car buying intentions of Australians. Prior to the COVID-19 pandemic, 10 per cent of those surveyed said they intended to buy a new car in the September quarter compared with eight per cent now.

That number rises to 23 per cent of Australians intending to buy a car in 2020.

But COVID-19 is directly impacting the buying habits of Aussies and the cars they intend to buy.

Australians are increasingly looking for cheaper alternatives to their desired car. Photo by Thomas Wielecki

Australians are tightening their belts.

The survey showed a big chunk of those that said they are planning on buying a new car now, were downsizing their purchase plans due to the current economic uncertainty.

This means buyers are looking at cheaper options of their preferred vehicle.

Buyers aged under 25 showed the biggest intentions to opt for a cheaper purchase at 23 per cent, this was followed by 16 per cent of Baby Boomers.

The most recent sales figures released by the Federal Chamber of Automotive Industries shows that purchases of budget brands are climbing.

The MG3 is the most popular city car in Australia in 2020.

Sales of emerging Chinese brand MG have been particularly strong. MG has reported a sales increase of more than 50 per cent so far this year.

MG has a small range of affordable vehicles in popular segments popular with young and older buyers.

The small MG3 hatch sells for less than $17,000 drive-away, undercutting rivals such as the Mazda2 and Toyota Yaris.

While the MG ZS and HS SUVs offer cut-price alternatives to popular models such as the Mazda CX-3 and Toyota RAV4.

The Kia Cerato is packed with equipment at an affordable price.

Shoppers are also prioritising value in mainstream brands – with South Korean brand Kia one of the main beneficiaries The Kia Cerato small car is now more popular than the Mazda3, which in 2011 and 2012 was the country’s most popular new car.

The value-laden Mitsubishi ASX is the most popular new small SUV in Australia.

This is also evident in string sales of the Mitsubishi ASX SUV, which is one of the oldest new cars on the market having gone on sale in its current form a decade ago. But it leads all small SUVs on the sales charts because of its strong value compared to newer rivals.

But it isn’t all good news for the Australian new car market.

Sales are down this year and according to the survey the majority of those who have decided to put their new car purchase on hold in 2020, unsurprisingly, have cited the COVID-19 pandemic as the reason.