8th April, 2021 · Member News

AADA Consumer Survey

3 minutes to read

The AADA has recently conducted a study to understand the perspectives and preferences of new car buyers when purchasing a vehicle and interacting with new car Dealers. The AADA also sought to understand the potential impact on consumers of the Manufacturer-led fixed-price sales model.

 

CONFIDENCE IN CAR BUYING PROCESS

One of the key findings of the survey was that the vast majority of 94% of Australians are comfortable with finding the best car for their needs and navigating through the car buying process. Just 1% suggested that they are not confident with the car buying process.

Consumers are also confident when it comes to interacting with new car Dealers, with almost 9 in 10 (87%) stating that they are confident in interacting with Dealers. This shows that the new car Dealer experience isn’t seen as a significant barrier to purchasing a vehicle.

 

IMPORTANT FACTORS FOR CONSUMERS WHEN BUYING A CAR

One factor important for most car buyers (91%) is the ability to test drive a car before buying it. More than 2/3 of those even considered a test drive as a “very important” factor.

When it comes to finding the right car, dealership sales staff is and remains an important factor in the process, with 8 in 10 people stating they value the advice provided by sales staff.

The ability to negotiate on the price of a new car in the dealership is also highly valued by consumers, regardless of age, gender or brand of vehicle purchased. A total of 90% said they valued the ability to negotiate, with half of those (51%) stating it helps them to get a better deal. 85% of consumers also like to negotiate on add-ons.

 

HOW APPEALING ARE NEW SALES MODELS?

7 in 10 Australians find the idea of buying a new car at a fixed-price either unappealing (32%) or are uncertain (38%). There was a high level of concern that  a fixed-price model would drive prices up for everyone, with 52% suggesting that such a model would lead to higher prices for new cars in the market.

However, consumers did note the simplicity and potential ‘fairness’ of the agency model. Overall, the appeal of the fixed-price/no negotiation model is relatively consistent across demographics, although there are tendencies for it to have greater support among younger consumers, premium brand buyers and men.

 

When it comes to the notion of buying a new car online instead of at a physical dealership, the market is divided. Almost half (46%) wouldn’t consider buying a car online, while around one in three (29%) would be willing to do so. This highlights the importance of new car Dealers in the new car purchasing process.