- mycar's 2026 Mobility Index has found that one in five Australian drivers has been forced to delay the purchase of their next vehicle indefinitely due to rising fuel and car costs
- 43% of drivers are cutting back on discretionary (non-essential) driving, a group that accounted for 65% of respondents to Savvy’s March Fuel Price Survey
- 70% of car owners’ purchasing plans have been significantly impacted by rising car costs
- Almost half (46%) of respondents planned to purchase an electric car or PHEV next, compared to 38% of prospective car buyers in Savvy’s survey who said they’d consider an EV
20% of Australian car owners are delaying the purchase of their next vehicle indefinitely as a direct result of nationwide fuel price hikes, a recent survey has found.
The mycar 2026 Mobility Index revealed that one in five of the 2,025 respondents have parked any plans to upgrade or refresh their current set of wheels.
Perhaps most notably, 70% of vehicle owners have had their purchasing plans or decisions significantly affected by spiking vehicle costs and high interest rates.
The findings of the survey reflect those of Savvy’s Fuel Price Survey, conducted in March, which found that 76% of respondents were experiencing moderate or major financial stress as a direct result of steep price hikes.
These sentiments aren’t expected to change any time soon, as Aussies brace for fuel prices to rise in July and again in August.
Delayed car purchases a barometer for peak unaffordability
The move from one in five respondents to mycar’s study to put off a vehicle purchase for as long as possible is a clear indicator of how much Aussies are feeling the pinch right now.
Not only did more than three quarters of Savvy’s respondents report financial pressure due to fuel costs, but a new car has also been found to be the least affordable financial commitment, according to recent Finder research.
65% classed it as unaffordable, with 49% also placing petrol in that category.
By contrast, rent or mortgage payments were unaffordable for 38% of respondents, energy and utilities sat at 35% and groceries 24%.
mycar also reported that 15% were extending servicing intervals, while almost a quarter (24%) are moving towards DIY as the solution for vehicle maintenance tasks.
12% are also turning to AI to help them fix issues themselves, which has its pros and cons.
“While AI is a powerful tool in improving transparency and understanding, it's not a replacement for expert care,” mycar Managing Director Sylvain Borré said.
“AI tools consider vehicle servicing questions in isolation – based on the prompt provided to them – and can't take a holistic view and comprehensive assessment of the vehicle.”
Over two in five cutting back on discretionary driving
One clear side effect of the country’s steep hikes to fuel prices is the number of people who are driving less and conserving petrol or diesel.
mycar's Mobility Index found that 43% of drivers were cutting back on discretionary, or non-essential, driving, while 26% were driving less altogether and/or switching to alternative modes of transport.
The latter number has risen by 5% compared to their last survey, which was conducted in 2025.
Respondents to Savvy’s Fuel Price Survey also reported significant changes to their travel habits, with 65% pledging to drive less, 16% taking more public transport and 13% committing to walking or cycling more often.
Only 11% of respondents to that survey stated that the cost of fuel wouldn’t lead to any changes in their travel habits.
Fuel pricing pushing more Aussies towards EVs
It’s a sentiment that Savvy’s respondents echoed, with 38% of those soon to be in the market for a new vehicle considering going electric as well.
That’s on top of the 40% who said that they’d choose a more fuel-efficient vehicle in general, adding up to almost four out of five respondents (78%) who were now keenly aware of fuel economy.
New EV registrations in Australia have been reaching record highs over the past few months, peaking at 19.9% of all new cars sold across May, according to that month’s VFACTS data.
It was the third month in a row that the previous record had been broken, off the back of March’s 14.6% and April’s 16.4%.
“It’s clear that many Aussies are riding the EV wave off the back of sky-high fuel prices, and why wouldn’t they?”, Savvy Managing Director Bill Tsouvalas said.
“Although some concerns remain regarding their pricing, buying a brand-new EV has never been cheaper.
“On top of that, with more EVs on our roads comes an increased used EV market, so there are bound to be even better deals in the pipeline if you’re looking to hop off the petrol or diesel train.”
Relief for now, but not for long
June saw the lowest fuel pricing around the country in months, dropping to a nationwide retail average of 159.7 cents per litre last week, as tensions in the Middle East begin to ease and the Australian Government shores up its petrol and diesel supplies.
Another aspect of that was the fuel excise discount, which saw 32 cents per litre slashed for a three-month period.
However, while the discount was extended into this month at the 11th hour, it’ll only be worth 16 cents, meaning your fuel will likely go up by at least that amount.
Come August, the discount is expected to be phased out completely, so we could see prices start to rise again very soon.
Compared to the prices seen in June, August’s excise increase is expected to add $74 to the average two-car household’s monthly budget.
There are plenty of savings to be had in other areas, though; for example, by reviewing your insurance policies and energy plan, you might find that you’re spending hundreds more than you could be each year.
Drawing up a budget and sticking to it can also keep you on the right track when combatting expensive fuel.
