The Australian Automotive Industry has changed dramatically over the last two years. The way customers bought cars in 2019 is much different to the way they buy them today. Customer buying habits have changed from a traditional face-to-face method to online. With that being said Australian Dealerships need to adapt to the new customer buying trends in order to stay competitive.
Here are 4 New Car Buying Trends Changing the Australian Automotive Industry.
Direct-to-Customer Online Car Sales
The biggest change to the Australian Automotive Industry in the last two years has been the transition to Online Only Vehicle selling. After experiencing two lengthy lockdowns over the last two years customers have transitioned from the regular face-to-face car buying method to online.
Recent Studies Released by Google show 95% of Australian Car Buyers start their search for a car online instead of at a dealership. To put this into perspective, this is double 2019’s numbers, which highlights the sudden and dramatic shift. To take advantage of the trend, dealerships need to adapt to this new customer preference and cater towards Online Car Selling.
Using tools like your Dealership Website, Dealers can offer customers the complete buying process online. You can do everything you normally would in person through your dealer website, from Virtual Vehicle tours to Dealer Finance and everything in between can be done Online. What makes this so appealing for dealerships is offering a direct to customer method expands your target market. You can now cater your vehicles to customers interstate. All you need to do is arrange delivery to the customer after the time of purchase.
Electric Vehicle sales are booming in Australia! On the back of new government incentives and a greater environmental friendliness, Australians are starting to shun the regular petrol and diesel vehicles in favour of electric. To underline the growth of Electric Vehicles in Australia, sales tripled last year alone!
For Dealerships, there is no putting off catering for Electric Vehicles. Customers are looking for electric vehicles in record numbers. To take advantage of the trend dealerships should seek avenues to source quality new and used electric vehicles to sell. You never know what may happen in the future but what you cannot deny is the continued growth of electric vehicles.
If your dealership is looking to expand into the Electric Vehicle Market it is important you undertake the relevant research, understand the market, electric vehicle valuations and resale prices before making an investment.
Related Article: How to Start an Electric Car Dealership?
Used 4x4 Utes
It’s no secret that Used Cars are in demand right now. With new car production still not back at pre-covid levels the demand for used cars has continued to grow. When you look at the statistics of used car sales there is one model that stands above all else – 4x4 Utes.
In 2021, 4x4 Utes took up 4 of the top 10 selling vehicles in Australia. As a Motor Dealer it is important to understand what vehicles are popular and what customers want. As the data shows Australians are wanting used 4x4 Utes. To take advantage of the trend dealers need to analyse sales numbers and source the right cars. 4X4 Utes are what many Australian Car buyers are looking for in 2022.
In the last two years Facebook has changed the way dealerships advertise their vehicles. When it comes to social media, there is no bigger platform than Facebook. A new trend found in the Australian Automotive Industry is customers are now looking for vehicles on Facebook more than other mediums excluding Google.
With the sudden shift many dealers have been started to take advantage and have introduced targeted Facebook Automotive Inventory Ads. Facebook Automotive Inventory Ads automated vehicle advertisements that show ads to targeted users who are looking for a vehicle on Facebook.
Facebook AIAs use your vehicle listings, Facebook data, and website data to show ads to specific, interested Facebook users who live within a radius of your dealership. The biggest benefit Dealers have found with Facebook AIAs is they automatically update as you buy and sell. All dealers have had to do is set it up and watch the leads generate.
Customer Car Buying habits are constantly changing. As a Motor Dealer, it is important to stay on top of all the latest trends in the industry. Analyse the data and implement systems that allow to take advantage of them. The 4 trends mentioned above are a few new ways customers are buying cars in 2022.
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