Seniors are leading the way in car sales
According to the Australian Bureau of Statistics via Canstar Research, 69 per cent of Australian seniors are driving (those aged over 80), up 10 per cent compared to ten years ago. This corresponds with an average of 89 per cent of over-55s driving. As seniors have higher equity in assets and more disposable income compared to other age brackets, it’s no wonder that seniors also lead the way in new car buying.
What the research tells us
Australians aged over 65-plus are 50 per cent more likely to buy a new car within the next four years compared to 2007. There are almost as many senior buyers than there are 25-34 year old buyers in the market. Roy Morgan Research conducted this research in 2015.
According to Roy Morgan Industry Communications Director Norman Morris, “the Over-55s are significantly more likely to own their home, in a 1-2 person household with no children. However, they are still budget-conscious, with below average incomes and a higher representation in the lower socio-economic quintiles.”
This age bracket also gets much of its information about new vehicles through traditional avenues such as the newspaper or trade magazine.
In 2013’s Social Trends study conducted by the ABS, it showed that men over 65 tend to use public transport more often to travel to work. Interestingly, the number of women driving a private car to work increased by a similar proportion.
What older people are driving
The Roy Morgan research revealed that seniors are most interested in buying new small to medium passenger cars. The most popular brands among seniors are Mercedes-Benz, Kia and Honda.
Other popular brands are Mazda, Toyota and luxury marques such as Porsche and Ferrari.
Can seniors finance cars?
Seniors can finance cars using consumer car loans available on the market. Many brokers and lenders allow seniors to finance cars even if they are on the aged pension. Seniors who own their own home and have money invested in super or property can also gain approval for car loans more readily. Some banks and lenders may cap the amount seniors on pensions or allowances may borrow, or require a minimum fixed income.
Do seniors want cars or do kids not want cars?
It seems that younger people are not interested in owning their own cars. According to Monash University, the number of under 25s without a driver’s licence has increased from 23 per cent to 35 per cent in 10 years. This may be due to the high cost of entry into car ownership relative to accessible public transport and car-sharing services such as GoGet or Flexicar. Even so, seniors seem to have an increased appetite for new cars as time goes on.
For more information on your possibilities as a senior driver, click here.