Do Gen Z still give a honk about owning a car?

By Maria Gil · · 2 min read
Fact Checked
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girl in car smiling

Gen Z, the pragmatic, financially frugal, and climate-concerned generation, are finally reaching the age where they can purchase cars. 

But do they want to?

A new study by Carsales.com found that 43% of young Aussies don’t really care about car ownership. In fact, many of them believe that accessibility to cars is more important, especially when they have a diverse set of transportation options available to them. This means using rideshare like Uber, carshare like Turo, public transport or borrowing a family member’s car.

But not caring doesn't mean Gen Z is anti-car ownership. More than half of them look forward to owning a car in the far future. 

“For Australian Gen Zs, driving remains a cultural symbol of freedom and independence,” says the study.

Unfortunately, 64% of young Australians don’t think they can own a car, and 32% fear the debt that may come with ownership. Especially when 66% of Aussies are keen on buying an electric vehicle (which tends to be more expensive) to help offset their carbon footprint and help combat the climate crisis.

How difficult is it to buy a car in Australia?

Buying a car in Australia isn’t difficult, but the critical problem many young people are experiencing is that there are just not enough cars available.

During the pandemic, vehicle manufacturers experienced a component and labour shortage and have not recovered since. While the car supply market is expected to normalise to pre-pandemic levels, it’s going to take some time.

Notably, due to the lack of new cars available in Australia and long wait times, we've seen second-hand car sales spike in prices due to high demand. But this isn’t stopping the younger generation from saving money to complete what they call  “an essential milestone of adulthood.”

If you want to own a car in 2023, check out the Mozo People’s Choice Award Winners for best car brands. Or if you have a brand in mind start comparing car loans below.

Car loan comparisons on Mozo

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Last updated 30 October 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$75,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $75,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.99% p.a.to 24.99% p.a.
    6.99% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.99% would cost $36,132.67 including fees.

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    Details
  • New Car Loan

    Fixed, Secured, $5,000-$75,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $75,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
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    Details
  • Any Age Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    10.69% p.a.
    10.97% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 10.69% would cost $39,053.66 including fees.

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  • Car Loan

    Variable, Secured

    Interest rate
    comparison rate
    Monthly repayment
    9.99% p.a.
    10.21% p.a.based on $30,000
    over 5 years

    Repayment terms from 1 year to 6 years. Representative example: a 5 year $30,000 loan at 9.99% would cost $38,385.82 including fees.

    Compare
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    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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