New data from Roy Morgan reveals Australia’s new car buying intention has dropped dramatically as increasing cost of living pressures continue to hurt households.

According to Roy Morgan’s data, just 16 per cent of Australians aged 14 or over are intending to buy a new car in the next four years. That’s a significant drop from the high-point of March 2023, when 20 per cent of Australians indicated they intended to buy a new car.

The drop has seen overall buying intention tumble to 47 per cent, down from a high of 52 per cent in March 2023.

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Source: Roy Morgan Single Source (Australia), April 2022 – March 2026. Average number of interviews for each 12 -month period, n=64,868. Base: Australians 14+. Question: How many years is it likely to be before you buy a car for yourself – or replace your own car – or in some other way get a car for yourself? Is it likely to be a used car or a new car?

“Buying a new car is a big decision,” said Roy Morgan CEO Michele Levine in a statement. “The latest data on car buying intentions reflects Australians believe now is not a good time to make big purchase decisions in the middle of a cost-of-living crisis.

“This is consistent with what we see in our latest ANZ-Roy Morgan Consumer Confidence index – which remains near a record low. Indeed, only 13 per cent  say now is a ‘good time to buy major household items’, while the majority (49%) say it is a ‘bad time to buy major household items’.”

While research indicates new cars are set to take a sales hit, consumer confidence around used cars remains strong, with around one-in-four Australians (26 per cent) indicating they are looking to purchase a second-hand car within the next four years, a slight increase measured against March 2023 (25 per cent).

Roy Morgan’s data also underscored the popularity of SUVs, its research highlighting that 56 per cent of respondents confirming they intend to buy an SUV as their next new car purchase. Passenger cars (non SUVs) have fallen out of favour, with buyer intention dropping by seven per cent to just 23 per cent, down from 30 per cent in March 2023.

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Source: Roy Morgan Single Source (Australia), April 2022 – March 2026. Average number of interviews for each 12 -month period, n=64,868. Base: Australians 14+ intending to buy a new vehicle in the next 4 years.

“The popularity of SUVs remains strong, with the majority of new car intenders (56%) saying they intend to buy an SUV,” said Ms Levine. “The increased popularity of Medium SUVs is good news for car manufacturers with models in this category. 

“More importantly, this is an appealing market for Chinese car manufacturers entering an increasingly competitive Australian market which is expected to improve price competition for Medium SUVs.”

Roy Morgan’s research correlates with sales data compiled by the Federal Chamber of Automotive Industries which shows that SUVs made up around 62 per cent of the total new car market in April 2026, up from 60 per cent over the corresponding period last year. Traditional passenger cars accounted for just 13.3 per cent of the market, down from 13.7 per cent.

The April results also highlighted a shift in the popularity of legacy brands as an increasing number of Chinese manufacturers make inroads into the Australian market. Toyota remained the market leader with 15,185 sales. However, BYD with 7702 vehicles sold, moved into the number two slot, capturing 8.3 per cent of the market. The result underscores the rapid rise of Chinese manufacturers, which collectively accounted for around 30 per cent of total sales during April.