Financial stress forces Australians to change their driving habits

An array of global events, including war in the Middle East, rising fuel prices and cost-of-living pressures, are changing Australians' driving behaviour, according to new research.

Sophie Renton, Managing Director of McCrindle, says that Australians are no longer absorbing increasing fuel costs but actively changing their driving habits.

“More than three-quarters of petrol drivers (77%) have changed their behaviour by focusing on essential trips, taking public transport more, or walking,” she said.

This is part of a broader trend that McCrindle observed during a recent survey of more than 1000 Aussies, with 51 per cent reporting anxiety about the unrest in Iran, up from 45 per cent during the pandemic.

“Right now, the Australian psyche is under pressure.

“In the short term, tightening the belt on driving habits is a tangible way people are trying to regain control amid broader economic volatility.”

Around 30 per cent of respondents said they’ve delayed non-essential spending, and 1 in 10 have increased income through additional work, according to McCrindle’s study.

The Middle East conflict has also led to an increase in Australians exploring electric vehicles (EVs), with the research finding more than 30 per cent are extremely or very open to owning an electric vehicle.

“This response highlights the evolving landscape of Australian mobility as households navigate a changing energy environment,” she said.

Meanwhile, RACV head of policy, James Williams, said it has also noticed a surge in interest in electric vehicles since fuel costs increased.

“EV searches on RACV Car Match?increased by 461 per cent in March, compared to the month prior,” said Williams.

Elsewhere, the latest national research from mycar Tyre & Auto found similar changes in driving behaviour, as well as additional insights.

It found 20 per cent of drivers are delaying vehicle purchases indefinitely, while some drivers (15%) are holding on to their current vehicles for longer and?prioritising?essential maintenance over non-urgent repairs.

Others are reconsidering ownership altogether, with one in five now more likely to?purchase?a second-hand vehicle, and a similar proportion (20%) delaying their next vehicle?purchase?indefinitely.

While the fuel shock has been a catalyst for increased EV uptake and longer-term use of public transport and walking, Renton says society is often slow to change.

“If it’s seen as an inconvenience, then habits will likely return to those prior to the fuel shock,” she said.

“As we have seen before, spending and travel generally bounce back once a sense of economic security returns.”

Additionally, Williams says there are other ways drivers can maximise fuel efficiency and save money.

“Simple behaviour changes can deliver meaningful savings in fuel consumption,” he said.

“Smooth driving,?maintaining?steady speeds and avoiding rapid acceleration or harsh braking can reduce fuel use and wear and tear, lowering overall running costs.”?

He also recommends removing excess weight, limiting use of roof racks, and ensuring vehicles match household needs.

“These can lower fuel consumption and ongoing expenses.”

And in the longer term, Williams encourages drivers to keep up with servicing,?monitoring?warning lights,?maintaining?tyre pressure and wheel alignment: “All improve fuel efficiency and prevent more expensive repairs over time."

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