Vehicle Purchasing Trends Impact Home Loan Capacity
Australians are still buying cars, just not the same cars they used to. While the overall market held steady in 2025 (new vehicle sales dipped only 0.9% on the previous year), what's happening under the surface tells a different story. Plug-in hybrid purchases surged 130.9%, hybrid sales grew 15.3%, and battery electric vehicles now account for 8.3% of all new car sales nationally.
It's a genuine shift in how Australians are choosing to get around and it's one that carries real implications for anyone also managing a mortgage.
Why the type of car you buy matters to your home loan
Different vehicle categories come with different price tags, running costs, and financing structures. A hybrid or EV might cost more upfront but less to run week to week. A petrol vehicle might be cheaper to buy but pricier to fuel and maintain over time. Layer on extended loan terms, balloon (residual) payments, and manufacturer incentive deals, and the true long-term cost of a vehicle can look quite different from the number on the price tag.
For households who are also servicing a home loan, these choices aren't just about the car, they can quietly shift how much borrowing capacity you have, and how much breathing room is left in your monthly budget.
Before you sign on a new vehicle, keep these in mind:
Loan terms, interest rates, and fees vary significantly from lender to lender, the first offer you see isn't necessarily the best one.
Balloon payment structures can make monthly repayments look more manageable, but they usually mean paying more overall.
Dealership finance is convenient, but it isn't always the most competitive option available to you.
The bigger picture
A vehicle upgrade doesn't need to work against your home loan goals but it pays to look at the two together rather than in isolation. If you're weighing up a new car and want to make sure the financing fits comfortably alongside your mortgage and broader financial plan, we're happy to run through the numbers with you.
Get in touch with the team at Maher Group and let's find the option that works for your whole financial picture, not just your next car.