Sun, sand, cricket and good times might be synonymous with summer in Australia, but it’s also peak season for car buyers. With pent-up demand post the COVID-19 lockdowns, rising car usage and ownership, a boost in new licence holders and greater appetite for domestic and auto-based travel, the summer of 2020-21 promises to be one of the most fruitful yet for Australian car dealers and brands. But even though there is no summer holiday for car buyers, there are some key considerations for car dealers who want to make the most of the season’s opportunities.
Mobile traffic means mobile car buyers
“There is a common misconception that car buying in Australia stops in late December and that January is a no-go zone. In truth, when buyers have more leisure time, car-shopping activity on carsales increases,” explains Michael Holmes, Executive Director – Dealer at carsales.
“Historically, January is the busiest month for buyer activity. Key carsales metrics such as sessions, views and average time spent on site all spike during this period.”
“In January 2020, carsales sessions increased 26% on December 2019.¹ That’s 5.6M extra sessions over the course of the month,” adds Holmes.
Holmes says the uptick in car-shopping activity is most notable from Boxing Day as Australians head away after family Christmas get-togethers.
“With 80% of carsales traffic now via a mobile device, the car-buying journey now travels with the consumer,” Holmes says.
“So when there’s a moment of downtime at the beach or in the backyard, consumers resume researching purchase options, shortlisting vehicles and contacting dealers.”
“Now, with consumers more comfortable than ever to use ‘Buy from home’ services, this summer there’s a huge opportunity for dealers to conclude deals sight unseen,” he adds.
Macro trends boost car interest
In good news for the Australian automotive industry, COVID-19 macro trends such as burgeoning car usage, an influx of newly-licensed drivers and first-time car owners, and increased interest in auto-based travel, all point to more sales opportunities for dealers and brands in summer of 2020-21.
In particular, with overseas holidays off the calendar, many Australians are considering domestic and auto-based travel opportunities. Two-thirds of respondents to a June survey from caravancampingsales.com.au said that they are more likely to consider buying a caravan as a result of the COVID-19 pandemic, while increased spending on automotive parts and accessories was also foreshadowed by Bapcor’s sales growth, a leading provider of automotive aftermarket parts and accessories.
The latest carsales search data highlights the popularity of cars that can facilitate leisure activities and caravan towing, with the Toyota Landcruiser, Ford Ranger, Toyota HiLux and Isuzu D-MAX among the most searched cars on site.
“Australians have a natural love of the great outdoors. For a little while at least, domestic travel will be the key option for holiday-hungry consumers,” says Holmes.
“There’s scope for dealers to not only sell cars, but also more parts and accessories off the back of increased interest in domestic travel.”
Tax cuts and property prices weigh on market
Following September’s expansionary Federal Budget, consumer confidence soared to its highest level in more than two years. Many Australians are also cashed up with the nation’s savings ratio soaring to a 46-year high according to Bloomberg.
So, it’s not just new tow vehicles that stand to benefit with consumers feeling more optimistic. According to VFACTS October 2020, Australian new car sales last month were down just 1.5% below the same month last year. And excluding Victoria, the market improved by 10% year-on-year.
Amid climbing premium house prices, premium cars were also in the eye of many prosperous Australians during the pandemic.
“Views of new luxury cars increased by 61% through April and May and remain significantly up compared to last year.¹ We saw 20% more views on new luxury cars in September 2020 than we did in September 2019²,” said Mark Cripsey, Chief Product and Data Officer at carsales.
“Mercedes-Benz has been one of the biggest winners, increasing their already high levels of consideration by 40% compared to this month in the previous year.² A substantial portion of this growth came from the A-Class, which grew its September views by 159% year-on-year.²
“Maserati also saw substantial view growth in September, with consideration for the brand up 56% year-on-year. This was driven by demand for the GranTurismo and Levante, which were up 103% and 92% year-on-year²,” Cripsey added.
All in all, the combination of good economic news and consumer optimism sent carsales Unique Audience and sessions up by as much as 31% in September 2020, compared to the same month last year. Similarly, in October, carsales Unique Audience grew by 32% year-on-year.
“The average time to purchase a car takes a little under three months and carsales is used by consumers across all stages of the car-buying journey. So increased car-shopping activity in Australia in September and October points to more deals being concluded in December and January,” says Vanya Mariani, General Manager – Auto OEM & Media at carsales.
“It’s great news for brands as new car inventory levels improve.”
“For mainstream, premium, prestige and challenger brands alike, the summer of 2020/21 represents an enormous opportunity to shift key brand metrics and capture greater market share,” Mariani adds.
TIPS TO BETTER ENGAGE WITH CAR BUYERS IN AUSTRALIA THIS SUMMER
Michael Holmes’ top four summer tips for dealers…
1. Don’t keep hungry car buyers waiting
“When an interested consumer takes action, speed is of the essence. Get in contact with sales prospects within a 30 minute period if possible and respect the consumer’s communication channel. If they text you, then text back before placing a phone call.”
2. Invest in Promote Automation
“Not only does carsales Promote Automation generate up to 7x more views on your inventory, it’s data-backed, automated and ensures that your new and aged inventory is highly visible. This allows you to focus on chasing up enquiries, scheduling appointments and closing deals.”
3. Merchandise inventory with professional photos and videos
“Professional photos, engaging videos and comments are critical building blocks to maximising advertising effectiveness. They help highlight to car buyers in Australia that you are delivering a great car at the right price and can provide more incentive for consumers to get in touch.”
4. Highlight immediate delivery
“If an inventory item is available for immediate delivery, ensure that you make this clear in your comments, auto-responses and other communication. At a time when inventory is lower in Australia than years gone by, immediate delivery is a key factor in car purchase decisions for some buyers.”
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Vanya Mariani’s top 3 summer tips for brands…
1. Be unmissable
“Ensure that your brand is front and centre at key moments. Being unmissable in relevant buyer searches via carsales Brand Terms not only generates more exposure for your brand but locks up key space so competitors can’t influence car buyers.”
Read more: Honda Australia increases brand awareness and consideration with carsales Brand Terms
2. Amplify your brand creative
“Search result pages on carsales are the heart of car researching and buying activity. Amplifying your television or social media creative on these hyper-relevant pages via carsales In-Feed Video can help shift the needle on key metrics of awareness and consideration.”
3. Connect with highly-engaged audiences
“Summer is a great time to take advantage of bespoke content opportunities as consumers spend longer on carsales. With our new tailored content hubs including Tradies, Families, Techies and EV, and Adventure, it’s never been easier to be front of mind with highly-engaged audience segments.”
