Pandemic lockdown travel restrictions car buyers’ key concern but two-thirds still ready to buy
Travel restrictions imposed by state governments to combat the spread of COVID-19 are car shoppers’ key concern in Australia’s largest states but almost two-thirds say they are still ready to buy.
They are two of the key take outs from carsales’ most recent car buying consumer sentiment survey completed last month (August 2021).
The survey polled carsales.com.au buyers and showed that with substantial lockdown measures in place in both NSW and Victoria, travel restrictions was the key issue concerning car shoppers along with affordability, face to face meetings and the challenge of arranging a test drive.
Overall NSW and Victorian buyers’ sentiment were the most impacted by the recent growth in case numbers and resultant state government actions.
While 56, 74 and 67 per cent of WA, Queensland and South Australian respondents respectively stated they had COVID-related car buying concerns, the proportion was higher in Victoria (81%) and NSW (85%).
Overall, the national proportion (76%) was tracking similar levels to May 2020, but well off the April 2020 peak when more than four out of five Australian car shoppers stated they were affected.
Travel restrictions top concern in NSW
Although 24% of those surveyed across Australia stated they had no COVID related concerns in terms of car buying, travel restrictions (27%) was the key factor NSW respondents reported. Logistics of taking a test drive (20%) and face-to-face dealings (12%) with the seller were the next ranked.
Only one in eight NSW car shoppers chose affordability as their top concern.
Affordability a significant concern in Vic
Although travel concerns impacted confidence (21%), affordability was also a significant factor for almost one in five (18%) Victorian car shoppers surveyed. Logistics of test drive was third (17%).
Confidence was more robust in Victoria with 19% of respondents stating they had no COVID-related concerns compared to just 15% in NSW.
Ready to buy
The remarkably robust nature of car shoppers in COVID times was again demonstrated via the latest carsales survey results with almost two-thirds (64%) reporting they are still ready to buy in the next month.
That national figure is matched by NSW with Victorian buyers only slightly less bullish (61%). Queenslanders are the most ready to shop, with 68% saying they are ready to buy within the one-month window.
The new normal
As with many aspects of life, COVID continues to modify the way we live, work and shop. There are very strong suggestions that the same is true for car shopping.
Survey respondents stated they spent more time researching cars only (62%) and small numbers had engaged in virtual vehicle inspections or dealer video calls. A growing number have taken up home test drive opportunities.
The telling factor is the sentiment towards these new practices. Over 70% will increase their online research post-COVID and the data suggests a more than 50% increase in demand for home test drives, video calls and digital interaction with dealers.
The writing is on the digital wall. COVID is changing the way Aussies are buying cars…
Further reading
Consumer demand remains strong
carsales buyer behaviour – August 2021
Consumer data reinforces need for digital-savvy dealers
