Over the past few years, we've seen rapid development in the automotive industry. The next 12 months are expected to see significant changes as manufacturers power towards a more sustainable and electric future.
Here are the top trends to watch out for in 2023.
Electric Cars Growth
In 2022, Australians purchased 33,410 electric cars. Up 94% from 2021 sales figures.
It's safe to say EVs are trending.
Australia has made major investment into increasing the uptake of electric vehicles by introducing the 'Electric Car Discount' policy and making public chargers more readily available.
In comparison, with the United States and Europe, Australia's uptake of electric vehicles has been slow. This is quickly improving!
The Australian Government has made some strides towards alleviating the main concerns of car buyers being:
- High upfront cost of EVs
- Lack of charging infrastructure sparking range anxiety
The latest incentives coupled with manufacturers introducing more electric options to the Australian market, we expect to see more electric cars on Australian roads in the coming year. Especially with the 'Electric Car Discount' policy making driving an electric or hybrid car on a novated lease a no-brainer!
Tech Take-Over
The touchscreen used to be reserved for more luxurious car models, however in 2023 they came as standard.
The latest trend, replacing physical buttons with the touchscreen... meaning bigger screens.
Forget the simple dial to turn up the volume, now you can navigate the central screen to do this.
Tesla is the ultimate example of the screen replacing controls. Everything is controlled by the central touchscreen.
This trend is only set to grow over the coming years.
Used Car Prices Will (Finally) Fall
Used car pricing has been at an all-time high over the past few years. In many cases used car prices were higher than their petrol counterparts.
This was due to manufacturing challenges from COVID and shortages of key components i.e. the global semi-conductor shortage.
We've already started to see prices drop. J.P. Morgan analysts predict used car prices could fall from 10-20% in the United States and we expect similar conditions here. You'll find the greatest decrease in cars that are 4 years or older.
This means that car-buyers can return to the used car market to find their next car at a more affordable price. Especially with new car pricing also at an all-time high, driving a used car is the clear solution for many buyers.
The good news, you can drive your 'new' used car on a novated lease as it can be a maximum of 15 years old at the end of the lease! (Conditions apply).
If you're worried about how your used car holds up, cars are made well enough these days that the average age they're on the road for is 12.2 years.
Drivers have even more peace of mind with manufacturers offering warranties for up to 10 years! Find all new car warranties on offer listed here.
Sustainable Cars
Sustainability is officially the key word for the 21st century.
If something isn't sustainable, the modern consumer isn't interested.
This has presented many opportunities for the auto industry to evolve.
The most significant solution has been the introduction of electric motors. When compared with petrol counterparts, owning an electric or hybrid car allows drivers to save on their carbon emissions and car running costs.
Moving from fossil fuels to electric power is just one step towards sustainability though. There are other interesting topics to consider, from lightweight construction, reducing carbon dioxide emissions in the manufacturing process and creating sustainable car interiors.
The use of natural fibers and renewable materials to replace synthetics and leathers. Consumers are willing to pay more for these too.
Ford have started using wheat straw, coffee chaff and soy-based foam as materials for manufacturing.
Mazda are using recycled PET bottles for interiors.
Even looking to the luxurious manufacturers, Mercedes-Benz created their own new sustainable material ‘Dinamica Microfibre’ (aka recycled bottles) as a main component of their interiors.
Online Retailing for New Cars
Traditionally, when it comes to buying your new car online options are limited. Platforms such as CarSales.com.au come to mind, however this still requires you to interact and visit a dealership at some stage in the buying process.
Over the past few years, the automotive industry has drastically changed. Throughout the pandemic, drivers were forced to find new ways to buy their car and dealers had to learn how to sell in the new isolated environment.
This saw a shift towards the ‘agency model’, a direct-to-consumer model that sees the manufacturer setting a consistent pricing strategy across all dealerships. In theory, the agency model makes the experience of buying a new car similar to any other online purchase. The research, configuration and transaction of their new car can all take place entirely online.
Tesla was an early adopter of this method and its proven successful.
Many other dealerships are making their fleets available online too. In most cases, you can visit your local dealerships website and find their current stock offering available online.
The trends for the automotive industry over the next 12-months are showing an electrified, technological, and sustainable evolution. The most noticeable change (and we’re seeing this now even in the first week of the year when writing this) is the shift towards electric powered cars.
Are you ready to save on your new car during 2023, learn how much you can save by requesting a quote or talking to our novated leasing specialists here today.