Australian consumers turn to used cars as a result of recent economic change

02 Sep 2020 Car Dealers Helpful Tips

 

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 have forced a sudden economic change to the Australian consumer market. As a result of this, we have seen the market change their buying habits and leverage used cars for their next vehicle thus 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 have 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 for dealers and distributors.

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. Research as found that the quality of the listing will determine the positioning of your listing. This includes details about the car, high quality images and as many as possible.
  • 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.

We hope you enjoyed this post. If you have any questions please do not hesitate to contact us at info@jeal.com.au