Why Middle Australia Is Quietly Driving the Shift Away From Car Ownership
- Written by Nick Boucher, CEO and Co-Founder, Karmo
The narrative around changing attitudes to car ownership has long focused on Gen Z. Younger Australians are often portrayed as the generation moving away from ownership in favour of access and flexibility.
Yet the strongest behavioural shift is not coming from younger drivers, it is emerging from what many would call “middle Australia”.
Australians in their mid-thirties to early fifties are increasingly reassessing the economics of car ownership. This life stage is when many are balancing careers, families and rising living costs, which means a car is no longer simply a lifestyle purchase but a financial decision that needs to add up.
Recent research from the Australian Automobile Association indicates that the national average cost of owning and running a car in 2025 was approximately $12,000 – $15,000 per year excluding loan repayments.
The AAA’s Transport Affordability Index also shows that Australian households now spend around 16 to 18 per cent of their income on transport, highlighting the growing financial weight of mobility. Against a backdrop of broader cost-of-living pressures, many Australians are reassessing large financial commitments and reconsidering the role traditional car ownership plays in their finances.
Depreciation, insurance, servicing, registration and fuel all contribute to the true cost of owning a vehicle. According to analysis from RedBook and National Assessing & Engineering, new vehicles in Australia often depreciate by 40 – 50 per cent by the end of their third year of ownership, making depreciation one of the most significant financial considerations for buyers.
For Australians who have bought and traded multiple vehicles throughout their lives, the financial realities of car ownership are already familiar. Each ownership cycle brings a clearer understanding of how depreciation, insurance, servicing and other expenses accumulate.
Life stage is reshaping mobility decisions:
What makes this shift particularly interesting is that it is not about abandoning cars altogether. Most Australians still rely heavily on personal vehicles for work, family and daily life.
Instead, the question is changing from “Should I own a car?” to “What is the smartest way to access one?”
At Karmo, our own customer data reflects this shift. Nearly 60 per cent of our subscribers fall within the 35 - 54 age bracket, indicating that demand is being driven by mid-career Australians rather than younger drivers.
This demographic tends to have a clearer understanding of the long-term costs of car ownership. They are also more likely to be managing competing financial priorities such as mortgages, raising families and rising household expenses.
In our latest customer survey, 73.4 per cent of subscribers said flexibility and the absence of long-term commitments were the primary reasons they chose a subscription model, while 80 per cent cited predictable, bundled pricing as the feature they value most.
These insights reflect a broader behavioural shift. People are looking for ways to maintain mobility while reducing financial uncertainty.
Cost certainty matters more than ownership status:
The traditional ownership model has long been tied to ideas of stability and status. For decades, buying a car outright represented financial progress.
Today, those signals are changing.
Many Australians now prioritise cost certainty over ownership status. Predictable monthly expenses are easier to budget for than fluctuating maintenance costs or unexpected repairs.
This is particularly relevant in the current economic environment. According to the Australian Bureau of Statistics, more than half of Australian households report they are experiencing cost-of-living pressures, prompting many to become more cautious about large financial commitments. At the same time, current global uncertainty can rapidly reshape economic conditions. Recent tensions in the Middle East, for example, have highlighted how quickly factors such as oil prices and fuel costs can shift.
Having flexibility in car access allows subscribers to respond more easily to changing market conditions and personal needs. It also gives drivers the opportunity to trial hybrid or battery electric vehicles without committing to long-term ownership, making it easier to adapt as fuel prices, technology and preferences evolve.
For drivers who anticipate that their needs may change over time, whether due to work, family or location, flexibility also reduces risk.
If a household requires a larger vehicle next year, or decides to reduce transport costs altogether, subscription allows for adjustment without the burden of selling or refinancing a vehicle.
The rise of access-based mobility:
What we are witnessing is part of a broader shift toward access-based consumption.
Across industries, consumers are becoming more comfortable accessing services rather than owning assets outright. Just like when streaming platforms replaced DVD collections and software subscriptions replaced boxed licences, mobility is following a similar path.
Australia’s car subscription market remains relatively young, yet early indicators suggest strong growth potential. Global mobility forecasts estimate that the subscription market will grow by 34 per cent each year for the next eight years, as consumers increasingly seek flexible alternatives to traditional ownership. This aligns with Karmo’s progress which last month saw our growth at 42 per cent YoY.
Importantly, this trend is not driven by a rejection of cars, it reflects a reassessment of how cars fit into modern financial planning.
A practical response to changing economic realities:
For many Australians aged 35 and above, mobility needs are complex. They require reliable transport for work, family commitments and everyday life. At the same time, they are navigating rising costs and increasingly dynamic lifestyles.
Flexible access models offer a practical response.
They allow drivers to retain the convenience of a personal vehicle while reducing some of the financial friction and time associated with ownership.
The narrative that younger generations are leading the move away from ownership makes for an appealing headline. In reality, the shift is happening more quietly among Australians who already understand the true economics of owning a car.
Middle Australia is not walking away from cars, they are becoming more strategic about how to access them.
About Karmo
Established in 2019 by Nick Boucher, Karmo is the largest car subscription provider in Australia, proudly leading the market with a commitment to redefining the car ownership model. Our commitment, with innovation at our core, is to provide our customers with the highest-quality service which includes our premium new car subscription model through to our very own pioneering car subscription software designed to provide our customers with a seamless experience that is unique to Karmo.
We believe that accessing a car should be affordable, convenient, and flexible, which is why we have meticulously crafted a subscription model that adapts to your lifestyle and business needs. With the ability to regularly swap vehicles, Karmo provides a flexible and budget-friendly alternative to traditional car ownership.
Karmo was recently named a finalist in the 2025 Brisbane Lord Mayor’s Business Awards in the ANZ High-Growth Business category. It achieved #35 in the 2025 Deloitte Tech Fast 50 and an impressive #12 in SmartCompany’s Smart50, recognising our continued commitment to redefining and enhancing the car subscription experience.
