Car industry's surprising boom driven in part by public transport fears, build-up of buyers post-lockdown

Motoring body RACQ suggests confidence is back, with loan applications roughly doubling in the past two months.

"There was virtually no activity when it came to car buying for two or three months," RACQ spokesperson Paul Turner said.

"We're seeing a boom in car loans at the moment, seeing a really big return since the worst days of the lockdown."

Car yards across the country, like Auto Outlet Centre in Brisbane, say they are struggling to keep up demand.

"I've been that busy at the moment, the hardest thing to do is find cars to sell people," Auto Outlet owner Scott Brammel said.

RACQ said the spike was partly due to a build-up of car buyers, who may have been scared off when coronavirus struck.

Another reason is growing fears of cramped public transport as some workers begin returning to offices and workplaces.

"We've seen people steer clear of public transport," Mr Turner said.

"We've seen big growth in active transport, like bikes and electric scooters and even walking during the lockdown."

How we get around might change lanes for good thanks to COVID-19, this at a time our country is spending record amounts of public transport infrastructure.