Australians Aren't Buying Fewer Vehicles. They're Buying Different Ones.

One in five Australians has shelved their vehicle purchase indefinitely. At the same time, asset finance brokers say they're writing more deals than last year. Both things are true. The market hasn't frozen. It's rearranged itself.

The mycar 2026 Mobility Index found that 70% of Australians say higher vehicle prices, interest rates, and cost-of-living pressures have changed their buying plans. And 20% have postponed indefinitely. But the headline numbers hide a more interesting story.

The brand map has changed

Toyota, Australia's long-time default, is losing ground. BYD is up triple digits year-on-year. In May, 46% of all new vehicles sold were electrified, according to the Federal Chamber of Automotive Industries. That's not a trend line. That's a structural shift that has already happened.

BYD alone accounted for 26.8% of all battery electric vehicle sales this year, with 19,018 units sold through May. Tesla sits second at 21%. Toyota's BEV total for the same period: 1,540.

Asset finance brokers report writing more deals than last year, even as the market appears softer on the surface. The difference is what's being financed. Legacy brands are declining. Chinese and Korean manufacturers are filling the gap, often at lower price points with longer warranty coverage.

The buyer profile has split

Households, especially those who rolled off fixed-rate mortgages, are cautious. They're either delaying or downsizing their vehicle ambitions. But ABN holders are still buying out of necessity. Trade businesses expanding fleets, sole traders replacing ageing work vehicles, transport operators forced to rethink fuel costs after the March-April fuel crisis.

That crisis accelerated another shift. The Mobility Index shows 46% of respondents intend their next vehicle to be hybrid or electric, with 26% citing fuel price increases as the catalyst. Brokers report pre-approved buyers switching to hybrids mid-application as running cost calculations overtake sticker price comparisons.

The lending data confirms it

ABS lending indicators tell the same story from a different angle. Road vehicle lending was $4.7 billion in the March quarter, essentially flat year-on-year. But total personal fixed-term lending rose 14.5%. Australians are borrowing more. Just not for vehicles at the rate they used to.

Meanwhile, business borrowers are finding value in the used market. SME operators are increasingly buying through auction houses, targeting late-model vehicles at discounts the new-car market can't match.

What to do

If you're considering a vehicle purchase, the reshuffling creates opportunities that weren't there 12 months ago.

The brand shift is changing resale dynamics. A HiLux held its value for years because demand was near-universal. If buyer preferences are moving to BYD, Hyundai, and Kia EVs, the resale curve on established models may flatten faster than expected. Factor residual value into your finance term, not just the monthly repayment.

If you're weighing up a hybrid or EV, the running cost comparison matters more than the sticker price. A $35,000 hybrid at $40 a week in fuel looks different from a $28,000 petrol vehicle at $90 a week. Model those numbers over three to five years before deciding.

And if you've been sitting on the sidelines: one in five buyers walking away means less competition at the negotiating table. Dealers with stock to move and fewer walk-ins are more likely to sharpen their numbers.

This article is general information only and is not financial advice.