Australian car buyers are spending months researching vehicles before making a purchase, with nearly two-thirds backtracking during their journey as artificial intelligence becomes part of the decision-making process.
According to carsales’ Australia’s Car Buyer Report 2026, released in collaboration with strategic advisory firm Nature, 63% of buyers backtracked at least once during their research – a 17 percentage point increase from 2023. Additionally, 34% paused or stopped their search altogether, up 6 percentage points from the previous study.
The research, based on a nationally representative survey of 2008 Australians, found that today’s car-buying journey is significantly longer, more emotional and far less linear than it appears on the surface.
“Australia’s Car Buyer Report 2026 makes it clear that the visible shopping window is only a fraction of the real journey,” carsales Managing Director Craig Fraser said. “From the outside, buyers can look decisive. But when you look closer, you see they’re spending months trying to get things right – testing ideas, adjusting budgets and making sense of a lot of competing information.”
Value considerations now dominate decision-making, with “good value for money” and “within budget” ranking as the top considerations across all generations. This shift reflects ongoing cost-of-living pressures that are reshaping how Australian consumers define value in their vehicle purchases.
AI enters mainstream research
For the first time, artificial intelligence has entered the top 10 car research influences, ranking sixth overall. However, rather than replacing traditional sources, AI is adding another layer of support to the research process.
Car review and comparison sites saw their influence increase to 51% from 47% in 2023, while original equipment manufacturer sites rose to 30% from 26%, and dealer sites climbed to 26% from 24%.
Among AI users, 42% rely on it daily, with usage peaking among new migrants and detail-oriented researchers. The technology helps buyers compare models, decode technical jargon, clarify finance options and fact-check information from other sources.
Hybrid momentum accelerates
The report reveals significant shifts in fuel type preferences, with hybrid purchases among new car buyers increasing by 15 percentage points since 2023 – the strongest growth of any fuel type. Electric vehicle purchases rose by 5 percentage points, driven by interest in technology, performance and lower running costs.
Looking ahead, 42% of buyers intend to purchase a hybrid vehicle, nearly double the proportion planning to buy an EV (24%), where purchase intent is starting to soften.
Trust challenges persist
More than 6 in 10 buyers (62%) find it difficult to know who or what to trust when beginning their research, while 59% worry about making the wrong decision. Women, younger buyers and new migrants feel this uncertainty most strongly and are more likely to revisit earlier steps to rebuild confidence.
“The real moments that shape momentum aren’t always the obvious ones,” Fraser said. “They’re the pauses, the second-guessing, the backtracking and the confidence dips that happen long before someone appears at a dealership. These moments are easy to miss, but they matter the most.”
The research found that trust influences how quickly buyers progress through their journey and how often they pause to reassess their decisions.
As affordability pressure intensifies, newer manufacturers are no longer niche challengers but are embedded in mainstream consideration. When budgets reset mid-journey, buyers increasingly reopen their shortlist to include value-led entrants, shifting the competitive battleground from brand heritage to perceived value.
The 2026 edition of Australia’s Car Buyer Report draws on independent nationally representative survey data and qualitative journey tracking to provide a comprehensive view of the full purchase journey across new and used vehicles. carsales first began this research in 2013, with the study evolving into an established, evidence-based examination of automotive buyer behaviour.
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