Car buyers hold off

The number of Australians who intend to buy a new vehicle has fallen, according to the latest findings by Roy Morgan Research.

Those Australians who intended to sign up for a new vehicle in the next four years has declined 13 per cent, from an all-time high of nearly 2.5 million potential car purchasers in May to 2.17 million in July.

The number of new car ‘intenders' thinking of buying a vehicle in the next 12 months has also decreased, from 721,000 in May to 608,000 in July.

Jordan Pakes, Industry Director – Automotive at Roy Morgan Research, said: “The recent decrease in car-buying intention coincides with a strong decline in consumer and business confidence since the May federal budget announcement.

"The main factor influencing this decline in consumer confidence is a growing proportion of Australians who expect to be worse off this time next year.”

Australian new-vehicle sales have slowed in recent months, with VFACTS sales figures for the new financial year showing sustained declines over the previous year.

In the latest figures available, new vehicle registrations to the end of August were 2.5 per cent down year-to-date compared to August 2013.

In August 2014, 88,157 new vehicles were registered — down 5.5 per cent on the same month in 2013.

Pakes said events overseas such as the unstable situation in the Ukraine (including in the downing of MH17) are also having an adverse impact on consumer certainty.

Roy Morgan Research has undertaken a rolling three-monthly research on new-car buying intentions since April 2002, with an average quarterly sample of 13,479 respondents. The research only engages private buyers — no fleet, government or rental buyers are included.