Although indicators such as VFACTS depict a softening new car market, buyer activity on carsales remains strong as consumers substitute a new car purchase with a used car. During the FY19 period on carsales, there was an uptick in buyer enquiries on used cars, a decline in average time to sell and growth in site traffic.
Better understand the behaviour of Australian car buyers with our key insights below.
1. Mobile, mobile, mobile
Easy and flexible: Whether it’s researching via carsales Editorial content or searching for the perfect New or Used Car, buyers are increasingly turning to their mobile during the car buying journey. The carsales mobile site and acclaimed apps now make up 80% of traffic to carsales. SMS buyer enquiries to car Dealers also continue to edge up, now making up 26% of the total enquiry volume.
2. Buyers are shopping for cars 24/7 on carsales
50% of buyer enquiries now occur outside of traditional 9am – 5pm business hours. Ensure that you have strategies in place to provide customer service when your business is closed. Hot tip: Engaging a buyer with prompt follow-up or an auto response to their enquiry not only helps them feel immediately acknowledged and excited to set up an appointment, but can stop the buyer turning to a competitor.
3. Buyers are impatient – slow follow-up costs sales
More than 25% of buyers that send an enquiry to a Dealer receive no response within 24 hours, while 15% of enquiries to carsales convert to sale within 24 hours – underlining the importance of quickly establishing contact with the buyer and building a relationship.
4. Promoted inventory receives more views
Promoted inventory on carsales ranks higher in search results and wins more buyer views. Inventory with Promote upgrades automatically purchased by Promote Automation received an average of 5.2x more views than unpromoted inventory on carsales. Furthermore, more than half of searches are not sorted – it’s a race to the top of search results to maximize exposure and opportunity.
5. Digital is the way to meet the needs of young car buyers
Younger car buyers are harder to please. On carsales.com.au, customer satisfaction with car Dealers – measured by Average Dealer Ratings – increases as the respondent’s age rises. From utilizing SMS to quickly follow-up enquiries, uploading videos to your listings and eliminating long paper forms; optimizing your use of digital tools will help your business resonate more with millennial and first-time car buyers.
6. Sunroof runs hot with buyers using search keywords
Sunroof is the most searched keyword on carsales.com.au. Hot tip: Align with buyer behaviour and highlight sunroofs in your photography, video, comments and advertising creative.
Sources:
carsales internal data, April 2019. 2. carsales internal data, April 2019. 3. carsales Internal Post Enquiry Surveys 1 January 2017–30 January 2019. (N>226,000). 4. carsales internal data, January 2018 – June 2019. Promote Uplift calculated on all dealer stock promoted during 2018. Uplift from Promote Automation calculated from all stock promoted by Promote Automation (n = 245) since its release (Jul 2018 – Jun 2019). 5. carsales internal data, January 2017– June 2018. Age of respondent when asked to rate dealer experience at dealership out of 10. 6. carsales internal data, June 2019.
