2020 has thrown enormous challenges our way and the Australian automobile industry is no different. When Covid-19 hit Australia the impacts of Government regulations forced a sudden economic change to Australian consumers. As a result, we have seen the market change their buying habits and leveraged used cars for their next vehicle over brand new cars.
On August 13th, the the Federal Chamber of Automotive Industries (FCAI) reported 28 consecutive months of new car sales declines. The industry leader confirmed the consumer market had become increasingly fragile with spending due to the current economy as a result of the pandemic. However, this does not mean the consumers are not continuing to purchase their dream vehicle.
One of Australia’s leading vehicle sales advertisers Gumtree indicated last week that they have over 95,000 unique car listings on their platform, which is increasing roughly 27% each week or 32,000 new listings per week. Gumtree’s head of motors Richard Dicello indicated that based on their market research consumers still have a high intention to purchase used vehicles. Gumtree’s research also found that 87% of Gumtree Cars user database intend too purchase their next dream vehicle within the next three months.
The data found is not all doom and gloom for the automotive industry itself, however it does present some obstacles to dealers alike. Due to the current economic shutdown in Victoria and multiple states still restricted by Covid the consumer market is still fragile and will impact the road to recovery.
As mentioned on Savings.com.au, used car dealers and individuals seeking a quick car sale will need to strategically plan how they are going to go to market for selling their car in the current situation.
Tips to selling your used car at a volatile time like this:
- Research the competition. See what competing individuals and dealers are offering consumers. Bookmark the listing and see how long it takes them to sell.
- Presentation and details. The quality of your listing will determine the positioning of your listing. This includes details about the car, and high quality images.
- Pricing: As mentioned by head of SASS Financial services Canna Campbell, consider listing a competitive price and or list the car as negotiable. This will give the consumer more confidence in obtaining the best deal.
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