Australians are increasingly delaying or skipping essential car maintenance due to rising financial pressures, a new study reveals. The trend highlights a broader shift in consumer behavior as household budgets tighten, forcing difficult trade-offs between immediate expenses and long-term vehicle health.
Postponed Services and Neglected Repairs
A recent report by Canstar shows that 57% of Australian households have delayed, reduced, or canceled car-related expenses in the past year. Nearly half (49%) of the 2,700 car owners surveyed admitted to postponing scheduled servicing, while 28% put off buying a new vehicle, and 17% scrapped those plans altogether.
More concerning, 25% of respondents reported neglecting necessary repairs, including critical safety components like brake pads and tires. This decision poses a direct risk to road safety, as deferred maintenance can lead to mechanical failures and accidents.
Generational Trends and Regional Disparities
Younger demographics are disproportionately affected. 69% of Gen Z and 67% of Millennials have cut back on car expenses, compared to 60% of Gen X and 42% of Baby Boomers.
The financial strain isn’t evenly distributed across the country. Victoria and Western Australia report the highest rates of delayed or canceled car spending, with 60% of motorists in those states making similar decisions. Tasmania, New South Wales, South Australia, and Queensland follow at 59%, 57%, 56%, and 54%, respectively.
Beyond Servicing: Fuel Quality and Insurance Cuts
To save money, some owners are also compromising on fuel quality (17%) or reducing driving frequency. A significant number – 21% – have canceled or reduced non-compulsory car insurance coverage, exposing themselves to greater financial risk in case of accidents. A small but notable 5% have sold a vehicle without replacing it, indicating a more permanent shift in transportation habits.
The Rising Cost of Transport
The trend comes amid growing transport costs. The Australian Bureau of Statistics reported inflation rising from 3.4% to 3.8% by December 2023, but the Australian Automobile Association (AAA) claims households now spend 15.6% of their income on transport, averaging $452 per week – an increase of nearly $100 in five years.
“When it comes to your car, safety has to be the number one priority, well above saving money, so servicing and maintenance has to be on the list of non-negotiables,” says Canstar’s director of data insights, Sally Tindall.
Long-Term Consequences
Skipping maintenance may provide short-term savings, but it risks higher repair costs down the line and reduces vehicle lifespan. Delaying servicing can also lower resale value. The study underscores a difficult reality for many Australian drivers: prioritizing financial survival over preventative care, even if it means compromising safety or long-term value.
