carsales’ most recent consumer survey has revealed that car buyers are spending more time researching and purchasing online than ever before, and that this trend is likely to continue in a post-pandemic Australia.
As detailed in our latest webinar, over 60 per cent of respondents indicated they have spent more time researching a vehicle purchase online during the COVID-19 period.
Of those, 76 per cent stated they would continue this behaviour once the pandemic has passed.
As another sign of the times, 36 per cent of participants said they would now consider purchasing a vehicle online, removing the traditional dealership visit. Looking ahead, 56 per cent felt it was likely vehicles will be primarily purchased online in future. “We’re all spending more time online as a result of COVID” says Deb Heaphy, GM Customer Advocacy and Research. “It’s not surprising that people’s consideration of purchasing cars online has also increased as shown by these latest results”.
From a transactional perspective, around one-third are willing to pay a deposit for a vehicle they have found online. This percentage increases among key 30-39-year-old (42 per cent) and 40-54-year-old (37 per cent) age groups.
With more than one in three people considering the pure online sales experience, an enhanced digital dealership presence is essential for future business success.
Key factors driving the online purchase decision
When asked, ‘Which of the following would encourage you to buy a car online?’ half of those surveyed indicated that ‘Guarantees around the condition of the vehicle’ would be a primary driver.
This was closely followed by ‘Knowing I was getting a guaranteed best price’ at 41 per cent, while the convenience elements of an ‘At home test drive’ (33 per cent) and ‘Having the car delivered to my driveway’ (29 per cent) also factored strongly.
These results point to an increased need for online transparency and a clear understanding of what online services a dealership can provide.
Current consumer ‘pain points’ show online opportunity
The carsales survey asked consumers to cite their biggest buying concerns during the pandemic, and while 24 per cent stated they have no issues, topics such as ‘Travel restrictions/penalties’ (19 per cent) and ‘Logistics of taking a test drive’ (15 per cent) indicate demand for increased services such as virtual inspections, video walk-arounds and home delivery options.
carsales has consistently surveyed Australian car shopper sentiment during the global pandemic. Affordability has re-emerged as a factor and now sits as the biggest concern for 17 per cent of respondents.
How carsales can help your listing stand out
To maximise online opportunities, carsales offers a range of powerful tools designed to assist dealerships in achieving listing ‘best practice’.
Imagery is key
carsales General Manager – Automotive, Matt Heggie, suggests a minimum of 20 professional photos, ideally photographed at a location that speaks to the vehicle’s target market: for example, a small car in the city, or a luxury car in front of a restaurant.
Video is also becoming an essential sales tool, with carsales data showing that listings with video experience up to 54 per cent increased views compared to a standard listing.
“It’s important to think from the consumer’s point of view. They want to ‘see’ themselves in the car, and video is a fantastic way for them to visualise that this is ‘their’ car,” says Heggie.
“For example, video can bring that V8 sound to life, or demonstrate the moonroof’s seamless functionality in a way that just isn’t possible with photography alone.”
Effective comments
As well as telling an appealing story for each vehicle (again, it’s about “selling the dream”, says Heggie), it’s vital to provide clear, concise messaging around what services the dealership currently offers. Do you offer click and collect? What are the best lines of enquiry? Can you provide virtual viewings? How about online finance and insurance?
All of these inputs assist in building trust with the consumer and reduce barriers to purchase.
Of course, your carsales Digital Account Manager can assist with topics specific to your dealership.
carsales Approved
With our consumer survey indicating 50 per cent of respondents would consider buying online with guarantees around vehicle condition, our ‘carsales Approved’ inspection tool is an important addition to dealer listings. And with the trend to digital, this will only prove more valuable in future.
Built off the successful RedBook Inspect vehicle inspection report, consumers can now filter carsales searches for vehicles bearing the carsales Approved badge.
For more information on integrating carsales Approved into your dealer inventory, contact dealer@redbookinspect.com.au.
Badges and tiles create higher visual impact
Listings that feature badges and tiles create further visual impact. Badges appear at the top-right of each detailed listing and can include services such as ‘Buy from Home’, ‘Home Delivery’ and additional offerings such as the Finance Extension.
Additionally, tiles can be implemented within the image gallery with further information around dealer services and current COVID policy.
carsales buyer behaviour – July 2021
RedBook Inspect proves critical for dealers in lockdowns
