By David Toscano, Trade Content Editor, carsales.com.au
Australians’ changes in transport preference are set to benefit the auto industry as the nation begins to rebound from the COVID-19 global pandemic.
Last week carsales revealed the findings of its latest onsite consumer survey during its weekly webinar for Australian dealers, automakers and industry stakeholders. The survey, conducted April 18-27 with responses from almost 3000 Australians, suggests that car ownership is set to rise post-COVID-19 with preferences on transport impacted by the pandemic.
In a potential boost for car dealers, 58.8% of non-car owner respondents to the survey responded that they are now more likely to consider buying a car, with 38% of those ‘definitely’ likely to consider buying a car ‘right now’.
Transport related concerns including hygiene, contact with others and convenience were evident in survey responses from non-car owners. Indeed, 45% of non-car owners surveyed say their views on primary transport preferences have changed.
“Although cars have always been central to the Australian way of life, it seems many consumers have missed the convenience they deliver,” says Deb Heaphy, Head of Customer Experience at carsales.
“As social distancing restrictions begin to loosen and lifestyles are re-evaluated, the desire to add new or a second set of wheels could well deliver sales opportunities for dealers,” she adds.
carsales Executive Director Dealer Michael Holmes stresses the importance of dealers utilising ‘virtual showroom tools’, particularly with an influx of non-owners entering the market.
“Now is the time to ensure that your inventory is highly visible and effectively merchandised on carsales” says Holmes.
“Many consumers will be shopping for cars for the first time, for some, they will be returning to the marketplace. In both cases, building confidence and trust by adding video to your listings, offering video calls and attaching independent inspection reports, can go a long way to closing a deal,” he says.
Traffic rebounds and searches boom
Compounding the cause for optimism is the continued growth of key carsales audience and engagement metrics.
From April 30 – May 6, carsales served 6.8m sessions. This was up 10.6% on the previous week, and 13.9% on the same week in 2019.²
This traffic delivered 75.7m searches, up 7%, while 16.9m detailed views of inventory were undertaken, up 9% on the previous week. The views result was up a massive 23% on the same week in 2019.²
“Current activity on carsales sees many of our key audience and engagement indicators now exceeding 2019-levels,” says Kellie Cordner, Chief Marketing Officer.
“The increase in views and enquiries demonstrates genuine intent to purchase a new or used vehicle.”
“Even as social distancing and other measures are relaxed across the country, many consumers may still prefer the ease and convenience of buying a vehicle from the comfort of home,” Cordner adds.
New-car views now exceed pre-COVID-19 levels
The uptick in interest in new cars also continued, with inventory views now exceeding pre-COVID-19 levels.
Between April 30 – May 6, views on new and near-new Mercedes-Benz and BMW inventory were up 4% and 9% respectively. Another standout performer was Mazda, up 16% on the previous week.¹
The ute/pick-up segment – vehicles which are prime candidates for instant asset write-offs – increased its view count by 14% compared to the previous week.¹
“As we get closer to the EOFY period, which is typically characterised by more above-the-line spending and purchase incentives, we could see buyer activity in the new car arena increase further,” says Jeremy Moger, Head of Insights at carsales.
“Prestige makes continue to attract strong view volumes, but it is mainstream makes that have really bounced back in the weeks after Easter.”
In the used car market, views of dealer used inventory between April 30 – May 6 increased 6% on the previous week, and 23% when compared to the same week last year.²
Overall, almost two thirds of the Australian car market’s brands logged an increase in views of dealer used inventory compared to the previous week. Toyota was the biggest winner, registering an additional 70,000 views.
The increase in views of used inventory translated into more sales opportunities for dealers, with 38% of makes increasing their volume of used enquiries by more than 10%, compared to the previous week.¹
“April was also notable for an uptick in interest in sub-$10,000 listings. Enquires on this segment are up by as much as 15% month-on-month,” says Moger.3
“Given our survey findings, and the fact this type of vehicle is likely to resonate with new to the market buyers, this trend may well continue in May,” he concludes.
Source:
1. carsales internal data, April 23-29 vs April 30 – May 6 2020
2. carsales internal data, April 30 – May 6 2019 vs April 30 – May 6 2020
3. carsales internal data, March 2020 vs April 2020
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