50% of Aussies suffered a financial loss during COVID-19

New research from car subscription company Carbar found that one in two (50%) Australians suffered a financial loss during the COVID-19 pandemic.

The data comes from a study conducted with research firm YouGov which surveyed a representative sample of more than 1,048 Australians over the age of 18.

Interestingly, the study also revealed that despite this, three in ten (or 5.8 million) Australians still plan to buy a car in 2021. Of those surveyed, 34% plan to buy a second-hand vehicle this year, while roughly 22% want to buy brand new.

To add to this, a significant 41% of Aussies don’t feel in control of their car expenses which are costing them $5,100 plus per year, or more than $9,000 a year for those paying off loans.

"These results show that transport and car costs are still a key consideration for Australians despite the hardship they endured in 2020,” said Carbar chief executive, Des Hang.

Aussies looking for more flexible alternatives to car ownership:

According to Carbar, approximately 2.2 million Aussie adults are keen to find more flexible alternatives to purchasing a car, like car subscription services (1 million people) for example.

Unsurprisingly, millennials made up the largest portion of those keen to try car subscription services.

Millennials, who are said to have been the hardest hit by COVID, tend to spend up to $7,300 per year on their car, according to Hang.

“Thousands more each than both Gen X and the Baby Boomers,” said Hang.

“For us, this shows a lack of awareness in the market around the true cost of owning a car, a point we are keen to champion and increase awareness on. Subscription is a flexible alternative to car ownership that can free up funds to service personal debt or gain greater control over your finances.”

Planning to upgrade your current set of wheels in 2021? Then check out low interest car loans to compare your options so you can find a competitive deal.