Buying a first car is a milestone moment—with buyers (or their parents) often filled with excitement, a healthy dose of apprehension, and a keen eye on the back pocket. As dealers, understanding the behaviours, preferences, and concerns of this segment of buyers is key to engaging them effectively. In honour of carsales First Car Buyer week kicking off February 24th, the latest Consumer Sentiment Report from our research team sheds light on the evolving mindset of first car buyers and how dealers can better cater to this important segment.
According to the latest insights, 14% of prospective car buyers are looking to purchase their first vehicle¹. This presents a significant opportunity for dealers to establish long-term customer relationships, given that a positive first car buying experience can lead to brand loyalty in the future.
One clear trend is that first car buyers overwhelmingly favour used vehicles, with 65% opting for a used car—higher than non-first car buyers at 59%¹. Affordability is a major factor, with 86% of first car buyers planning to spend under $30,000, compared to just 47% of non-first car buyers¹. These figures indicate that dealers should highlight well-priced, quality used stock and offer transparent history reports to build trust with this audience.
One of the biggest challenges first car buyers face is deciding where to purchase. They are significantly more likely to be unsure of where to buy a car (24%) compared to non-first car buyers (6%)¹. Additionally, only 14% are committed to purchasing from a dealership, far lower than the 38% of non-first car buyers who would only buy from a dealer¹.
This presents an opportunity for dealers to build trust and educate these buyers on the benefits of purchasing from a reputable dealership. Offering clear information on warranties, financing options, and after-sales service could help bridge the confidence gap and sway first-time buyers towards dealerships over private sellers.
The report highlights distinct differences in the types of vehicles first car buyers prefer. While SUVs dominate the broader market, this segment is more likely to be shopping for hatches (25%) and sedans (23%), compared to 12% and 17% of non-first car buyers, respectively¹. This reflects their budget-conscious approach and the preference for compact, city-friendly vehicles. Dealers should ensure their inventory aligns with these preferences, offering well-maintained, fuel-efficient options that appeal to younger buyers.
Price remains the dominant concern for first car buyers, with 87% ranking it as their top priority, significantly higher than the 71% of non-first car buyers¹. This again doubles doubles down on the importance of transparent pricing, competitive financing, and flexible payment options, all of which could be key to winning over these buyers.
While 62% of first car buyers feel confident navigating the purchase process on their own, more than a third still seek guidance. Dealers have an opportunity to step in as trusted advisors, offering informative and pressure-free experiences to assist in their decision-making.
First-car buyers also report greater concerns across the board compared to repeat buyers. They are more likely to be concerned about transparency on car history, odometer readings, and the vehicle’s overall condition. Being cognizant of these and facing them head-on with upfront documentation, certified pre-owned options, and clearly communicated warranties can be a catalyst to enhancing confidence in the buying process.
First car buyers represent a valuable but often hesitant audience, with affordability, transparency, and trust playing crucial roles in their decision-making. Dealers who tailor their approach by offering budget-friendly, well-documented vehicles, creating educational content, and providing a seamless buying experience will be well-positioned to convert these buyers into long-term customers.
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Source:
¹carsales Consumer Sentiment Survey Report – December 2024, Wave #19 n=2506.
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