Aussie car buyers flocking online to research next purchase… in their own time

The car buying journey time has more than doubled over the past four years, as consumers flock to the internet – instead of the dealership – for unbiased information.

That’s the key takeaway from the latest carsales whitepaper, titled ‘The Journey to Vehicle Ownership 2021’.

Following similar studies in 2013 and 2017, carsales has once again partnered with research specialist Ipsos to publish this whitepaper, which digs deep into the vehicle purchase journey for Australian consumers.

The research reveals that the time taken for Australian car buyers to purchase their new set of wheels has ballooned out to seven months, from only 2.7 months in 2017.

Each of the journey stages – Landscape, Validate, Select and Ownership – took longer to progress through as better-informed buyers narrowed down their options online.

The ease of creating websites and social media channels has resulted in swathes of car buying information that consumers then filter through, doubling the time spent in the Landscape and Validate stages from one month in 2017 to two in 2021.

The Select phase grew from 21 days to two months and the Ownership phase – statistically insignificant in 2017 – took a month in 2021 as the purchaser post-rationalises the decision more deeply.

Pandemic-induced lockdowns accelerated the trend to online interactions and increased social media usage, while a sharp decline in dealer experience satisfaction indicates these better-informed buyers are now demanding more transparency and timeliness from dealers.

Purchasers are also seeking auxiliary services, such as finance and insurance options, earlier in the journey and more of them demand the ability to transact online; for both the vehicle itself and servicing.

While there is increased desire for digital interactions, the need to physically inspect and test drive vehicles remains a defining point in the journey.

Looking forward, it’s no surprise that electric vehicles will play an increasingly prominent role in future vehicle consideration sets.

But a significant uptick in consumer openness to EVs was tempered with a general lack of understanding around the technology and its supporting services.

The lack of Australian EV charging infrastructure, the absence of federal government incentives for EVs, transparency over the true cost of EV ownership, and EV range anxiety remain key barriers to further uptake.

You can download the full carsales 'Journey to Vehicle Ownership' whitepaper here.