Car Loans Online :: News
SHARE

Share this news item!

Economic Pressures Drive Australians Towards Premium Used Cars

Surge in High-Value Used Vehicle Sales Reflects Changing Consumer Preferences

Economic Pressures Drive Australians Towards Premium Used Cars?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

As Australians grapple with escalating living expenses, a notable shift is occurring in the automotive market.
Consumers are increasingly turning to premium used vehicles as a cost-effective alternative to new car purchases.

Recent data from CARS24, a prominent digital used car platform, indicates a 51% year-on-year increase in demand for vehicles priced above AUD 40,000. This surge significantly outpaces the 16% growth observed in demand for cars priced below this threshold. The trend suggests that while consumers are mindful of their budgets, they are not compromising on quality and are seeking value in the used car market.

Several factors contribute to this shift. Rising interest rates, higher fuel prices, and increased insurance premiums have collectively made the ownership of new vehicles more financially burdensome. In response, many Australians are opting for high-quality used cars that offer reliability and modern features without the hefty price tag associated with brand-new models.

Industry experts note that this change reflects a more calculated approach to car ownership. Consumers are prioritizing vehicles that provide long-term value and align with their financial goals. The convenience and transparency offered by digital platforms like CARS24 have further facilitated this transition, allowing buyers to access a wide range of options and make informed decisions from the comfort of their homes.

For those considering a vehicle purchase, this trend underscores the importance of exploring the used car market. By doing so, consumers can find vehicles that meet their needs and preferences while adhering to their financial constraints. It's advisable to conduct thorough research, compare different models, and assess the total cost of ownership, including maintenance and insurance, to ensure a sound investment.

As the economic landscape continues to evolve, the preference for premium used vehicles is likely to persist, reflecting a broader movement towards more sustainable and financially prudent consumer behaviors in Australia.

Published:Tuesday, 18th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ASIC's Findings on Car Finance: High Fees and Early Defaults
ASIC's Findings on Car Finance: High Fees and Early Defaults
18 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about consumer protection and lending practices. - read more
Economic Pressures Drive Australians Towards Premium Used Cars
Economic Pressures Drive Australians Towards Premium Used Cars
18 Nov 2025: Paige Estritori
As Australians grapple with escalating living expenses, a notable shift is occurring in the automotive market. Consumers are increasingly turning to premium used vehicles as a cost-effective alternative to new car purchases. - read more
Extended Research Periods Mark Australian Car Buying Trends
Extended Research Periods Mark Australian Car Buying Trends
18 Nov 2025: Paige Estritori
The Australian car market, recognized as one of the most competitive globally, is witnessing a trend where consumers are dedicating extended periods to research before finalizing their vehicle purchases. On average, Australians now spend approximately 2.8 months evaluating options before making a decision. - read more
ASIC Takes Legal Action Against Car Finance Provider for Alleged Lending Breaches
ASIC Takes Legal Action Against Car Finance Provider for Alleged Lending Breaches
02 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court against car finance provider Money3 Loans Pty Ltd, alleging breaches of responsible lending obligations. This action underscores ASIC's commitment to enforcing compliance within the financial sector to protect consumers. - read more
Rising Car Loan Delinquencies Signal Financial Strain Among Australians
Rising Car Loan Delinquencies Signal Financial Strain Among Australians
25 Oct 2025: Paige Estritori
Recent data indicates a concerning rise in car loan delinquencies across Australia, with a 13% increase in vehicle repossessions over the past six months. This trend underscores the growing financial pressures faced by many Australians, as inflation and high interest rates continue to impact household budgets. - read more
Westpac Divests Auto Finance Loans in Strategic Move
Westpac Divests Auto Finance Loans in Strategic Move
25 Oct 2025: Paige Estritori
In a significant strategic shift, Westpac Banking Corporation has announced its decision to sell its auto finance loan book to Resimac Group. The transaction, valued between A$1.4 billion and A$1.6 billion, aligns with Westpac's ongoing strategy to streamline operations and focus on core banking services. - read more
Bank Australia Ends Financing for New Fossil Fuel Vehicles
Bank Australia Ends Financing for New Fossil Fuel Vehicles
17 Oct 2025: Paige Estritori
In a bold move towards sustainability, Bank Australia has ceased offering loans for new petrol, diesel, and hybrid vehicles as of February 2025. This strategic decision aligns with the bank's commitment to achieving net-zero carbon emissions by 2035 and underscores its dedication to promoting environmentally friendly transportation options. - read more


Car Loans Articles

The Top 7 Factors Lenders Consider for Car Loan Approval
The Top 7 Factors Lenders Consider for Car Loan Approval
For many Australians, buying a car is a significant milestones. Understanding the factors that influence car loan approval can make this process smoother and more successful. Knowing what lenders prioritise not only enhances your chances of approval but also helps you negotiate better terms. - read more
The Insider’s Guide to Haggling Your Way to an Affordable Car Loan
The Insider’s Guide to Haggling Your Way to an Affordable Car Loan
Finding the perfect car is an exciting journey, but securing the right car loan to finance it is an equally critical step. Choosing a loan with favorable terms can make a substantial difference to your wallet and overall well-being. This introductory guide is designed to navigate the nuances of car loan negotiation, ensuring you drive off not just with the car of your dreams, but a loan that suits your lifestyle and financial goals. - read more
How to Improve Your Chances of Car Loan Approval
How to Improve Your Chances of Car Loan Approval
Purchasing a car is a significant milestone for many Australians, but securing a loan to finance that purchase can often be a challenging endeavor. Whether you're buying your first car or upgrading to a new model, getting your car loan approved is a critical step in the process. - read more
How to Build an Emergency Fund for Unexpected Car Costs
How to Build an Emergency Fund for Unexpected Car Costs
Owning a car comes with a lot of responsibilities and unexpected expenses. From regular maintenance to surprise repairs, the costs can quickly add up and create financial stress. - read more
5 Essential Steps to Build a Strong Credit Profile for Car Financing
5 Essential Steps to Build a Strong Credit Profile for Car Financing
Building a strong credit profile is crucial when it comes to securing car financing. In today's financial landscape, your credit score can significantly impact the kind of loan offers you receive, making it more important than ever to maintain a healthy credit report. - read more
Choosing Between Long-Term and Short-Term Car Loans: What Australian Drivers Need to Know
Choosing Between Long-Term and Short-Term Car Loans: What Australian Drivers Need to Know
When it comes to purchasing a car, one of the biggest decisions to make is choosing between a long-term and short-term car loan. Understanding car loans and their significance can make a substantial difference in your financial future. - read more
A Step-by-Step Guide to Securing Your Pre-Approved Car Loan in Australia
A Step-by-Step Guide to Securing Your Pre-Approved Car Loan in Australia
A pre-approved car loan is a financial agreement where a lender approves a borrower for a specific loan amount before the borrower selects a vehicle. This type of loan sets a clear budget, giving car buyers a defined spending limit while providing a streamlined and efficient car shopping experience. - read more


Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.
Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Portfolio:
A range of investments held by an individual or institution.