Record appreciation in used car prices sees more Australians consider the purchase of a brand new car on carsales.
Strong prices of used cars are pushing more Australian car buyers to consider the purchase of a brand new car on Australia’s #1 for cars, the latest carsales data reveals.
Uncertainty emanating from the pandemic impacted consumer confidence early in 2020, causing used cars to hit a median listed price of $ $20,888 in April 2020, the first full month affected by COVID-19 in Australia.¹
However, by December 2020, used car prices had rebounded – and then some. Fuelled by apprehension towards public transport and interest in domestic auto-based travel, the median listed used car price on carsales grew a remarkable 19.7%, to $24,990.¹
One of the key impacts of stronger used car prices is the narrowing gap to new. Indeed, the number of consumers viewing a new car before enquiring on a used car was boosted 12% in December 2020, compared to April 2020.²
“There’s been a shift in behaviour on carsales as used car prices have appreciated and the price gap to new cars has narrowed,” explains Kellie Cordner, Chief Marketing Officer at carsales.
“We believe savvy consumers are acknowledging that new cars currently offer an excellent value-for-money choice, especially considering that they come bundled with comprehensive manufacturer warranty, the latest equipment and safety features.”
Although tighter than normal new car availability may be impacting the switch from a used to new, there are still attractive, cost-effective options for buyers across many segments.
“The pandemic has created some delays to the roll-out of new models but with over 50 new car brands Down Under, we are still spoiled for choice,” carsales Editor-in-Chief Mike Sinclair commented.
“There were a significant number of key new car launches into the Australian market in late 2020 and the momentum continues with a growing focus on hybrid and other green models. New SUV and dual-cab ute models are also increasing the options available to new car shoppers.”
Audience and engagement for carsales Editorial – a key indicator of consumer interest in new cars – surged in December 2020, with Unique Audience (UA) and Sessions up a remarkable +108% and +82% year-on-year respectively, as measured by Nielsen’s Digital Content Ratings Monthly report.
With just one click across carsales mobile, desktop and app destinations, car buyers can transition from researching a car via carsales editorial content, to enquiring on brand new cars listed for sale by Australian dealers or through the carsales New Car Showroom.
“With consumers out in force and increasingly considering the purchase of brand new cars, now is the time for brands to ensure that all inventory is available to purchase on carsales, benefitting from maximum exposure,” concludes Cordner.
Source:
1. carsales internal data, April 2020 vs December 2020.
2. carsales internal data, based on a comparison of email enquiries placed on carsales.com.au and the carsales iOS app, April 2020 vs December 2020.
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