Buying cars on the internet

While it has long been suspected that new and used car buyers, with Internet access, conduct online research before visiting car dealers, the extent to which it occurs has been largely unknown in the South African market. Up until now there has also been very little indication as to the growth of the local online used car market.

The research conducted by AA Autobay covers a six-month period and evaluates how used car buyers utilise the Internet and, more particularly, and how search engines are used to carry out investigations into different car brands.

The company tracked 23 different car brands over this period, including Toyota, BMW, Mercedes Benz, Ford, Honda and Audi.

Top 12 Brand Specific Cars Searched for on the Internet

Ed Gassner, CEO of AA Autobay, says the volume of potential car buyers searching on a particular brand is fluid from month to month. “It is influenced by many factors such as marketing, advertising campaigns, and new model launches.

“The data regarding Honda is a typical example. In July the brand did not rank in the top 12. However, in October Honda was ranked first with a 20% share of the search volume.

“The used car market is not influenced by the same factors. Toyota is ranked number one, followed by BMW, Ford, Honda, and Volkswagen for brand specific searches. Used car buyers tend to search more generally using specific search terms, such as used cars or used vehicles. This indicates that users are looking for a hub or portal of useful information,” says Gassner.

“AA Autobay sees this research data as significant in that it provides a clear direction on what the market is looking for. It also shows the upward trend in online car research for both new and used cars.

“Over the six month research period Internet searching for the South African market increased from an estimated 1 million monthly searches to over 2 million car related searches. It is also noted that used car/ vehicle searches increased by over 25% over the same time period, with used car market related searches accounting for +/- 30% of the search volume. With an estimated 5 million South Africans having Internet access, the data points to the Internet being a primary new and used car research tool.”

He said used car buyers were looking for a cost-effective alternative to buying through dealers, while used car sellers typically would like more than the trade-in price offered.

Buyers and sellers look for a complete package, including fast and easy used car research, cars with AA Inspections, safe and controlled test drives, car financing and insurance, guaranteed payment, mechanical warranties and all the paper work and transfer arranged for both parties.