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Fresh research shows that many car buyers remain undecided on finance and insurance creating a timely opportunity for providers to add value earlier in the journey.

New insights from the latest carsales Finance and Insurance Prospective Buyers Survey reveal that many Australians remain undecided on how they’ll finance or insure their next vehicle, presenting a valuable opportunity for providers to connect with buyers earlier in the decision-making process.

With online research playing a major role in shaping preferences, and many buyers still open to influence, the findings highlight key moments in their journey where F&I brands can add value and build consideration.

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Finance decisions still up for grabs

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Just under one in four buyers (24%) have not yet decided how they’ll fund their next vehicle purchase. Among those not using cash or savings, over a third (36%) remain undecided on which option they’ll take up¹.

While interest rates continue to top the list of priorities (64%), buyers are largely forming their views through online research (27%) and conversations with family (29%). Gen Z in particular are more likely to rely on family advice, reflecting their lower exposure to the car buying process².

Dealer finance remains a relatively underutilised channel, with only 10% of all buyers intending to use it. This is despite 17% indicating they’ll use some form of car finance. Notably, 34% of those who ruled out dealer finance said they didn’t have a specific reason³, suggesting that stronger visibility and messaging could help drive interest and uptake.

Further, the vast majority of prospective customers (86%) have yet to settle on a specific provider⁴, leaving the door wide open for brands to influence choice.

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Insurance choices driven by cost and convenience

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Most insurance buyers are still weighing their options, with 56% yet to arrange cover and 70% undecided on a provider⁵. At the same time, more than two-thirds of respondents said they typically compare quotes from three or more insurers before deciding⁶.

Premium cost remains the single most important consideration, cited by 60% of respondents. It’s also the most common factor buyers check first when evaluating quotes. Notably, 24% say the cost of insurance directly influences the car they consider buying—a significant jump from 13% in August 2022⁷.

Digital discovery plays a central role, with 63% of buyers researching providers online. Three in four buyers (74%) say they would be open to considering an insurance offer featured on carsales, and nearly a third say they’d likely take one up—particularly among Millennial and Gen X cohorts⁸.

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The case for early engagement

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Across both finance and insurance, the research reveals a buyer base that is active but largely undecided. Only 14% of prospective car finance customers have locked in a provider⁹, and most insurance buyers are still comparing their options⁵.

The key takeout for brands and providers is clear: there is a strong incentive to engage earlier, build trust through education, and provide meaningful support while buyers are actively researching. That could mean embedding offers directly in the digital car buying journey, clarifying complex products like guaranteed future value (GFV) loans, or addressing misperceptions around dealer finance and insurance.

The brands that show up early and make the journey easier will be the ones buyers choose.

^Source:

¹^{carsales Finance and Insurance Survey, March 2025. Q: Have you decided how you will pay for your car yet?}

²^{carsales Finance and Insurance Survey, March 2025. Q: What will you do to figure out the financing for the vehicle?}

³^{carsales Finance and Insurance Survey, March 2025. Q: What are the reasons you have not considered car finance?}

⁴^{carsales Finance and Insurance Survey, March 2025. Q: Have you decided on a finance provider?}

⁵^{carsales Finance and Insurance Survey, March 2025. Q: Have you organised/decided on your car insurance yet?}

⁶^{carsales Finance and Insurance Survey, March 2025. Q: How many insurance companies do you usually consider?}

⁷^{carsales Finance and Insurance Survey, March 2025. Q: To what extent does the cost of car insurance influence the choice of car?}

⁸^{carsales Finance and Insurance Survey, March 2025. Q: How likely would you be to consider insurance offers featured on the carsales website?}