ALMOST half of Australian motorists are cutting back on discretionary driving, about a quarter are driving less or choosing other modes of transport, and a fifth are delaying vehicle purchases.

The outlook in Australian motoring habits comes out of a nationwide survey by car service chain mycar (previously Kmart Tyre and Auto) conducted in April involving 2025 respondents.

The mycar 2026 Mobility Index also shows that almost half of respondents were planning to choose a hybrid or EV as their next purchase with 26 per cent saying rising fuel prices trigger the decision.

Seven in 10 Australians (70 per cent) said their vehicle purchasing decisions had been impacted by rising vehicle costs, interest rates, and cost-of-living pressures.

In response, some drivers (15 per cent) plan to hold onto their current vehicles for longer and prioritise essential maintenance over non-urgent repairs.The survey also found that some are reconsidering ownership altogether, with one in five (21 per cent) now more likely to purchase a second-hand vehicle, and a similar proportion (20 per cent) delaying their next vehicle purchase indefinitely. 

Australian Automotive Aftermarket Association CEO Stuart Charity said that fuel price rises and the ongoing cost-of-living pressures were having a profound impact on Australian drivers. 

AAAA CEO Stuart Charity

“As more drivers hold on to their vehicles for longer or delay purchasing decisions, we’re seeing increased demand placed on the servicing and repair sector to keep older vehicles safe, compliant, and roadworthy for extended lifecycles,” Mr Charity said in the survey.

“That will make continued investment in skills, training and repair capability critical as the average age of vehicles on the road continues to rise.” 

The trend to consider electrified vehicles – BEVs and hybrids – had interested 46 per cent of the survey respondents. In last year’s Mycar survey, the figure was 36 per cent.

But while interest is strong, almost one in four (23 per cent) of respondents said the upfront costs of EVs and hybrids were too high to make the switch.

They blamed rising vehicle costs, higher interest rates, and the overall cost of living as being obstacles to moving from their current ICE vehicles. 

The survey said that this response highlighted “a transition that is gaining momentum but still shaped by economic realities”.

The survey also asked about the role of artificial intelligence in vehicle ownership.

Half (49 per cent) of ICE owners said AI helped them feel better informed when speaking with technicians or service providers, while 47 per cent of Australian vehicle owners trusted AI tools or chatbots to support their vehicle servicing decisions. 

While AI is helping to lift confidence and improve understanding, the data also points to a growing risk of overreliance – with one in three (33 per cent) Australians saying they trust AI recommendations as much as, or more than, advice from a professional technician. 

Mycar said that this growing confidence was beginning to translate into behaviour change.  

One in five (21 per cent) said that because of AI, they are now more comfortable replacing windshield wipers or changing tyres. “This extends to more complex maintenance tasks, with around one in 10 Australians saying AI has made them feel comfortable undertaking certain repairs themselves – including replacing air filters (17 per cent), rotating tyres (14 per cent), replacing fuel filters (14 per cent), and replacing brake pads (12 per cent),” the survey results said. 

But Mycar managing director Sylvain Borre said that while AI can play an important role in making drivers feel more informed and in control, the rise of AI-driven DIY car maintenance raised important safety questions. 

“While AI is a powerful tool in improving transparency and understanding, it’s not a replacement for expert care,” he said.

“AI tools consider vehicle servicing questions in isolation – based on the prompt provided to them – and can’t take a holistic view and comprehensive assessment of the vehicle. 

“We see AI as a way to support better conversations and help drivers make smarter decisions about their vehicles, but it’s important to not place all your trust on AI tools.”

While AI is reshaping how Australians engage with their vehicles, fuel shocks and economic pressures are changing how often they use them. 

More than two in five Australians (43 per cent) said they are cutting back on discretionary trips, such as weekend drives and getaways, due to rising fuel prices and broader cost pressures. 

A quarter (26 per cent) are driving less overall or switching to alternative transport options, while over one in four (27 per cent) are using public transport more frequently. 

The figures are up on last year. In the previous survey one year ago, 21 per cent of respondents said they are driving less and using alternative transport .

“Walking and cycling are also becoming more common, with nearly one in four (23 per cent) opting for more active modes of transport instead of driving, and one in seven (14 per cent) wanting to increase remote work to reduce travel costs,” the survey said. 

“These findings point to a broader behavioural shift where everyday mobility decisions are increasingly shaped by affordability.”

Mycar chief customer officer Adele Coswello

Mycar chief customer officer Adele Coswello said that the survey showed people were “adapting to economic realities while embracing new technologies”.

“Rising fuel prices are pushing more Australians to consider an EV or hybrid,” she said.

“That’s exactly what mycar is preparing for: training technicians, investing in EV-ready stores, offering state of health battery testing for peace of mind, and ensuring drivers have access to expert care whether they’re driving petrol, diesel, hybrid or fully electric.”