There are now more vehicles on the road than ever before as a result of the increase in new car sales. However, with more new cars on the road the average age of those cars is getting younger, which means a decrease in high value repairs and servicing usually performed on older cars.
The Motor Vehicle Body, Paint, and Interior repair industry is dependent on accidents in order to generate revenue. New cars are coming equipped with more and more safety features to help prevent the occurrence of accidents. As Australian consumers are showing a preference for newer cars, this will result in fewer cars needing repair work and a decline in revenue. Counteracting this, people with new cars are more likely to have repair work done than people in older cars.
The Motor Vehicle Electrical Services industry suffered negative growth in the aftermath of the Global Financial Crisis as consumers delayed non-essential servicing on their vehicles, and delayed purchasing new vehicles until the economy improved. Things have bounced back very well from 2010-11 and the industry has enjoyed substantial growth since.
The passenger car rental and hiring industry suffered in the wake of the Global Financial Crisis. Consumer and Business confidence was low so many people looked for ways to save money so avoided leasing and hiring vehicles, also foreign tourist numbers were down reducing the demand for hire cars.
In recent years, Australian consumers have shown a tendency to purchase new cars, which means that the average age of cars on the road is getting younger. This is not good news for the dismantling and used parts wholesale industry as they rely on used cars to provide replacement parts and repairs. Also, newer cars are likely to come with crash-avoidance technology which lessens the need for smash repairs and replacement parts. However, counter balancing the loss of this revenue is the high demand for scrap metal which is acquired as purchasers of new cars look to get rid of their old cars.