June 2026 was Australia's best month for new car sales on record. Yet two-thirds of Australians say a new car is the single most unaffordable purchase they can think of.
It may sound like a contradiction, but both are true. They just describe different buyers.
According to Savvy's own car loan data, the difference comes down to one thing: whether or not you own a home.
New car sales hit an all-time high
According to data from the Federal Chamber of Automotive Industries (FCAI), 140,058 vehicles were sold in June 2026, the highest monthly sales figure ever recorded in Australia.
Of these, 23.3% were battery electric vehicles, nearly tripling their market share in the first half of 2026, up from 8.4% in January.
Chinese EV manufacturer BYD alone accounted for 14.4% of the market in June, delivering 18,881 vehicles, positioning it as Australia's second best-selling brand, just 243 units behind Toyota. Two of its models, the Sealion 7 and Shark 6, were among the five best-selling vehicles in the country for the month.
More are making the electric switch
Surging fuel costs have prompted many Australians to consider making the switch to partially or fully electrified vehicles. According to the mycar Mobility Index, 46% now say their next vehicle purchase will be a hybrid or EV, up from 36% in 2025.
Savvy's own research supports this. In a recent national survey, 37.5% said they were now considering an EV in the face of rising fuel prices.
Yet most Australians can't afford a new car
Despite record car sales in June, the affordability picture tells a very different story. Finder research from April found that a new car was the single most unaffordable purchase Australians could think of, ranking worse than petrol, home insurance or their mortgage. Almost two-thirds said a new car is out of reach.
| Item | Unaffordable | Affordable |
|---|---|---|
| A new car | 65% | 35% |
| Petrol | 49% | 51% |
| Home insurance | 48% | 52% |
| Taking a week-long holiday | 45% | 55% |
| Health care | 40% | 60% |
| Your rent or mortgage | 38% | 62% |
| Going out to dinner | 35% | 65% |
| Home energy and utilities | 35% | 65% |
| Groceries | 24% | 76% |
| Source: Finder, April 2026 | ||
The mycar Mobility Index from the same month shows how this plays out. One in five have shelved upgrade plans indefinitely, and 21% now favour second-hand over new.
One record month, two very different buyers
The picture that emerges is of two very different groups. One is delaying their next car purchase. Another is actively fast-tracking a switch to EVs and hybrids.
So, who is actually buying?
Savvy's car finance data from March to June 2026 shows that those buying EVs and hybrids were disproportionately homeowners. 75% of EV buyers and 86% of hybrid buyers were property owners, compared to just 53% of petrol and diesel buyers.
BYD was the single most-financed brand in Savvy's data, with the Shark 6 and Sealion 7 outperforming even the Tesla Model Y, Australia’s most popular car.
Property ownership is often linked with stronger borrowing power, which may help explain the split. They also typically get lower interest rates on car loans than renters.
Some may also be able to draw on equity built up in their property, particularly if their home value has risen, to help fund a larger purchase like a new vehicle.
In many cases, this makes them better placed to act on rising fuel costs and fast-track a switch.
Behind the numbers is a much narrower story: financially secure, asset-owning buyers moving quickly off petrol, while the others sit it out.
“The record sales are real, but they’re masking a much harder reality for many Australian buyers,” Savvy Managing Director Bill Tsouvalas said.
“In reality, it’s a tale of two markets.
“Our data shows that the people best positioned to make the switch to an EV or hybrid right now are those who already own property. That group is moving quickly to lock in lower running costs.
“The other is holding off, not because they don’t want to upgrade, but because the economics don’t work for them right now.
“Homeowners just need to remember not to put their car on their mortgage or they risk paying near double for the car.”
