As one of the largest car finance brokers in Australia and a member of the car sales network, we’ve got quite the well of information at our fingertips. And while taking a look back at the consumer purchase numbers for 2017, we found a few trends that you might find interesting.
The Ute is still King
We all know that as a nation, we Australians seem to have a collective obsession with the trusty old ute and this passion shows no signs of abating. So it should come as no surprise that on the list of top cars that people borrowed money for, the Toyota Hilux comes in first across the nation.
Interestingly though, it’s the Holden Commodore than comes in a very close second. It’s somewhat surprising that the Commodore came so close to the Hilux although we suspect that the special 7-year warranty on the last of the 2017 Commodores had a lot to do with that.
We also imagine that sentimentality may have also been a factor as many diehard Holden fans (and there are quite a few) were eager to snap up the last of the Aussie-made Commodores. Somehow we doubt the new European models will be as popular as their predecessors.
$20k is the most popular loan size
Interestingly, although the average loan size comes in at just under $40k the most popular loan is still at that magic $20k threshold. While this could be indicative of the fact that more young people are borrowing to get their first car, it could also suggest that more people prefer to shop for value instead of luxury.
However, if we take a look at the stats according to gender, the most popular loan among women is $15k which brings us to our next point.
Men borrow more than women
Yes, it’s true. On average men borrow almost $5k more than women. The average loan taken out by men sits at $39,606 while for women it’s $35,930. And when you take a look at the most popular cars according to gender, it’s no real surprise why.
With men often opting for utes or more powerful sedans, it’s little wonder that they need to borrow more. Women, on the other hand, prefer to choose smaller and more economical cars such as the Mazda 3 and the Volkswagen Golf.
Queensland and Northern Territory women seem to be the exception here though as their most popular car is the decidedly large and not quite so economical Landcruiser.
Ford relying on the Ranger
2017 was a good year for Ford with the Ranger selling 42,728 to become Australia’s second most popular car behind the Hilux. With this in mind, we were a little surprised to see that according to our stats, the Ranger was in fact behind the Commodore and the Golf as the fourth most popular financed car.
Ford finished as the sixth most popular brand in Australia in terms of car sales and although this represents progress, over half of the 78,161 cars they sold in 2017 were Rangers. If ever a brand were a one model show, it’s Ford here in Australia. Slow and steady may not win the race, but it will certainly keep the brand afloat.
Toyota rules the roost
It seems that Toyota can do no wrong as they once again dominate our nationwide stats. The Hilux is the most popular car that people borrowed money for in the Northern Territory, Queensland, and New South Wales while the Landcruiser tops the list in Western and Southern Australia.
Victoria and Tasmania are the exceptions with the Holden Commodore the favourite, however, as we mentioned earlier, we don’t expect this to last. Reaction to the Opel Insignia-based 2018 Commodore has been a little lukewarm, and it may take some time for people to accept it as a replacement for the homegrown Commodore of old.
2017 was a bumper year for car sales and finance, and we fully expect 2018 to bring more of the same. It’s hard to see anything but another stellar year for Toyota while in contrast, it looks increasingly likely that Holden will continue to fall off the pace.
But what about you? Will you buy a new car this year or opt for a used model? Will you borrow above the average or will you go for something more economical? Whatever your decision, Stratton can help you find the right finance package to suit your means. Fill out this form, and we’ll give you an instant quote or if you prefer to speak to one of our consultants then check out our contact page for details of your nearest Stratton office.