Carsale’s latest consumer sentiment survey reveals that despite rising consumer confidence across the automotive industry, buyer behaviour continues to evolve in response to economic conditions and shifting priorities.
“Nearly half of all car buyers surveyed told us they’ve had to adjust their budgets due to cost-of-living pressures,” Carsales spokesperson Rafael Constantinou says.
Interestingly, for the first time in 18 months, fewer people say that rising fuel prices are influencing their car purchase decisions, suggesting that the recent drop in fuel prices could positively impact the market.
Buyer insights:
Consideration periods are lengthening. Compared to last year, car buyers are less likely to be ready to buy a car immediately. Over a third (39%) are looking to buy a car in over a month, a shift from the previous year (29%).
Women are more likely to be ready to ‘buy now’ (33% compared to 24% of men). Men are much more likely to browse for their new car for over a month (47% compared to 35% of females)
SUVs are the most popular cars on Carsales (35%), with women significantly more likely to be looking at this vehicle type (46%) than men (32%). Enviro-conscious Gen Z’s are more likely to prefer a Sedan (26%) or hatch (23%) over an SUV (20%).
Despite the cost-of-living concerns, quality trumps price as a top priority: For the majority (65%), quality and reliability are the biggest concerns when buying a car. New car buyers are often also concerned about affordability and availability within a reasonable timeframe. For used car purchasers, transparency on the vehicle’s history ranks above price.
Brand loyalty is decreasing: Only 19% of buyers are committed to sticking with their car brand. However, Toyota drivers are the most loyal, with 37% saying they would stay with the same brand for their next car, compared to Hyundai, at 5%, and Mitsubishi, at 9%.
Gen Z is the least loyal generation, with only 11% saying they’d stick with the same brand for their next car.
Seller insights:
Financial considerations have decreased. Although sale price is still the most critical factor for sellers (at 56%), it has reduced in importance since 12 months ago (65%).
The five-year itch: 61% of respondents keep their car for at least five years before selling. The key motivator for selling is upgrading to a new or better car model.
First car buyer insights:
First-time car buyers are more likely (65%) to consider only used cars than non-first-time car buyers (59%).
Quality and reliability are similar to price for non-first-car buyers; however, cost is essential in purchasing a car for first-time buyers. 87% of first-car buyers consider price the most crucial consideration when purchasing (vs. the average of 71%).
First car buyers are significantly more likely to spend under $30k (86%) than non-first car buyers (47%).
Gen Z first car buyers are significantly more likely to lack confidence in buying unassisted (43%) compared to millennials (23%)
“As younger and less experienced buyers, many Gen Z consumers are navigating their first major financial decision and may feel uncertain about the process. Our past studies have shown that Gen Z buyers aren’t always aware of the resources available, including government programs for car buyers and bank or financing options. This lack of awareness can contribute to uncertainty when making such a significant purchase,” Constantinou says.
While Gen Z buyers may feel less confident purchasing unassisted, they are highly research-driven and tech-savvy. They rely heavily on online reviews, expert opinions, and digital platforms – which is why a key focus for car sales is to provide them with the right tools and trusted information to support their journey,” he says
Research methodology
The Carsales research team conducted the 19th wave of the consumer sentiment survey on the Carsales website to measure consumer sentiment toward buying and selling consistently. The results were weighted by age to reflect the Australian population.
The survey appeared as a pop-up on the car sales website’s desktop and mobile versions. 2,506 respondents completed it from December 3 to 21, 2024.
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