The trend follows more manufacturers in the low emissions vehicle market
More young Australians were found to be shifting towards purchasing more sustainable vehicles following the increase in supply along with the lowering of prices, new loan data from CommBank found.
According to CommBank’s report, the first six months of 2024 saw car loans for hybrid and EV cars have increased fourfold for its customers within the ages of 18 to 24 compared to the numbers seen at the same time last year. Meanwhile, those between the ages of 25 and 34 saw a 111% increase, while those aged 35 to 49 saw a 30% increase.
Joel Larsen (pictured), CommBank’s general manager of personal lending, attributed the higher appeal of hybrid and EV vehicles because of more manufacturers in the market.
“We are now seeing more and more manufacturers enter the low emissions vehicle market in Australia and this additional supply is really driving down the price point. During the second half of FY24, the average price of electric vehicles dropped by more than 7% to just over $63,000 when compared to the same period last year,” Larsen said. “It’s good to see the price point on hybrid and electric vehicles tracking lower, as we know cost is a major concern among people on the hunt for their next car.”
In addition to this, a study commissioned by CommBank’s “Buy & own a car” service – which helps customers look for their new vehicle, gain conditional approval for finance, and determine the amount of their loan repayment – found that there were at least 60% of Australians which had concerns when it comes to financing their next car purchase.
Some of the most popular cars purchased through CommBank’s “Buy & own a car” service are the Toyota Camry and Corolla, Tesla Model 3, GWM Haval Jolion, Hyundai Kona as well as the BYD Seal.
