Buying New Cars

Online Loans

May 25, 2021

It’s not hard to see new cars on the road. Nor is it hard to notice all the new models coming out with their amazing new features.

So, how and why do so many people buy all these new cars? explains.

Firstly, ‘buying’ new cars

Did you know that around 90% of new cars in Australia are purchased through finance? It’s true. That means only 1 in 10 new cars on the road are bought with cash.

Sometimes it’s private consumers who buy that remaining 10% of new cars outright, sometimes it’s businesses. The same goes for new cars bought through finance – some are purchased by private people and others by businesses or for business purposes.

The numbers
  • 92% of Australians drive
  • $40,100 is the average price of a new car in Australia
  • 51.7% of all vehicle sales in 2020 were utes and SUVs
  • 916,968 new vehicles were sold nationally in 2020
  • 204,801 new vehicles sold in 2020 were Toyotas
Why buy new cars?

New cars offer some considerable advantages over used examples. For most people, it’s peace of mind, longevity and customisation.

Peace of mind

As new cars come with manufacturer warranties, you’ll know that if something goes wrong, you’re covered. These warranties typically cover the car and its accessories as it was delivered from the factory but don’t cover wear and tear or any accident damage, that’s where insurance can help.

For example, a new car warranty will typically cover a faulty component or something that suddenly stops working but it won’t cover scratches on the paint that might have occurred in a tight car park.

  • Note that all cars (new and used) bought with secured car loans are comprehensively insured. Often, this adds more peace of mind for motorists.

Capped price servicing is another advantage of buying new cars. Many manufacturers offer fixed price (or capped price) servicing so owners aren’t hit with large unexpected servicing costs down the track.

Just knowing that the car has never been used and abused or poorly maintained adds a lot of comfort to new car owners.


Car repairs aren’t cheap or fun. Buying a used car can come with risk as the car might need repairs. 

New cars come with the latest technology and features and have a clean bill of health. This means many years of trouble-free driving. Owners often use their new car for a long time as they’ll know it’s safe, modern and reliable.


This is a huge part of buying new cars. These days, when someone orders a new car, whether at the dealership or online, they’re able to select a range of options that suit their tastes.

Trim levels are an example, the base model, luxury, limited or sports package are typical selections. However, there are also colour choices, both inside and out, wheel choices and driver assist options. 

Many things from 360-degree cameras and automatic parking to digital gauge clusters and premium sound systems can be selected when ordering a new car. This gives the new owner the ability to option the car to their specifications.

The ability to find two identical cars on the road is becoming more difficult these days.

Toyota HiLux Workmate(Base model 2020 Toyota HiLux Workmate)

Toyota HiLux Rugged X(Range topping 2020 Toyota HiLux, the Rugged X – more than double the price of the Workmate above)

Did you know?

Some luxury cars offer the ability to select from literally hundreds of paint and interior colour combinations. This can include interior mood lighting, leather and stitching colours and paint style; pearlescent, metallic, matte or even ‘candy apple’ for example. Car colours aren’t ‘Silver, blue or white, but ‘Volcano Grey Metallic, Neptune Blue or White Knuckle‘ – marketing teams know their stuff!

Rolls Royce(Rolls Royce is known for offering a huge array of colour combination choices to their high-paying customers)

Why buy new cars on finance?

Most of us aren’t lucky enough to have tens of thousands of dollars spare for a car. Buying a new car on finance allows someone to get behind the wheel without having to save money for years and years.

But there are a few more reasons why so many people buy new cars on finance;

Low rates

Getting the best car loan deal means getting a low interest rate. One key factor that goes into rates for car loans is the vehicle itself. A new car comes with less risk due to the new condition, manufacturer warranty and generally higher resale value.

Typically, you can expect a lower rate on a new car compared to a car loan rate on a used vehicle.

Another factor of interest rates is the borrower’s profile, so make sure you have a healthy credit score.

Earning potential

Some people need a new, reliable vehicle for employment.

This might be a ute or van for a tradie or a new vehicle for a rideshare driver. They’ll need a new vehicle in order to carry out their job. Therefore, buying a new car increases their earning potential.

Another example of increased earning potential is someone travelling to remote locations for employment or to areas not covered by public transport.

A common reason for’s clients opting for new cars is the ability to travel further and more safely for employment in a reliable car.

If saving money for a new car over time, some people find they have to stick with limited employment opportunities within close proximity to home.

Changes to circumstances

Life can change pretty quickly. Some people find that saving money over time or sticking with an old vehicle simply doesn’t suit their lifestyle anymore. This might be due to a new hobby or interest or a growing family.

For example, a small car may have been perfect while living at home or as a student. However, when kids are on the way, something larger with more safety features might be preferable.

Get into your new car

A car is something most drivers use and rely on every day. Selecting the right one often gives owners the encouragement to take care of it and keep it in good condition. If your car does exactly what you want, how you want and when you want, you’ve made a good choice.

To find out what your rates and repayments look like, start with a quick quote from The process is easy and fast – and backed by an automated, professional system.

Find out more about new cars.

Sign Up to the Newsletter

Get offers, contests and promos delivered straight to you inbox