Study: Aussie car buyers return to dealerships
carsales data reveals vehicle warranty and trade-in options the main factor for choosing dealers over private sellersThe News
Australian car buyers are increasingly turning to traditional car dealerships, according to carsales’ latest consumer sentiment survey, with bricks-and-mortar car yards seeing especially strong appeal among female buyers.
The Key Details
- Dealership preference for buyers continues to grow
- Less than 10 per cent prefer to buy through a private seller
- Vehicle warranty offered by dealers is the main factor
The Finer Details
Dealership preference among car buyers – both new and used – has risen to almost 40 per cent, up from around 20 per cent in 2023, carsales’ latest consumer survey has revealed.
Based on responses from more than 2000 Aussies, warranty – a perk private sellers can’t always offer – is a major factor for potential buyers, with more than half of respondents citing the peace of mind that comes with warranty coverage.
Asked specifically what part of the dealer warranty appealed, most respondents said guaranteed vehicle quality and inspection, along with coverage for major repairs/mechanical issues, and ease of resolving issues.
Other reasons buyers said they’d prefer to buy from a dealer included trade-in options, established reputation, payment security, greater availability and a ‘simpler process’.
“This reinforces the point that car buyers care most about quality and reliability and thus will be attracted to options that maximise this factor,” said carsales’ data analysts.
Although around 35 per cent of respondents said they were ‘sure’ they’d purchase from a dealer, almost 45 per cent said they’d buy a car from ‘either a dealership or private seller’ and less than 10 per cent said they would only consider buying privately.
According to the research, women were significantly more likely than men to opt for the dealership experience, with more than 40 per cent of females opting for ‘dealership only’ when buying a car, compared to just over 30 per cent of males.
The Road Ahead
More than 80 per cent of new car buyers, and nearly 70 per cent of those planning to purchase used, rank vehicle quality and reliability as their number one priority.
So, while there are advantages and disadvantages of buying privately or through a dealership, the added after-sales benefits often provided by dealers clearly plays a key role in the decision-making process.
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