Ecommerce sites are taking the chequered flag when it comes to the youthful car buyer market

South Africans in the market for a car are increasingly turning to online classified sites to conduct research about their next ride and to purchase it. In fact, Google Trends confirms a substantial growth in online traffic related to cars since 2009.

The time has come for dealerships to take online showrooms seriously and to move more of their advertising budget online to make sure they have a presence where their buyers are. Traditional advertising mediums have their place, but buyers are increasingly online where they’re conducting thorough research and purchasing higher value items such as cars.

Dealerships need to boost their online presence and at the same time create an exceptional online customer experience. A substantial investment is required to set up an online shopping platform and to offer a good customer experience to go with it. Many dealerships don’t have the means, whether it be financial or human capital resources to create and service such a platform and this is where established online classified sites offer an invaluable service.

These sites have perfected the virtual showroom where buyers and sellers meet. They have the infrastructure, know-how and resources to provide a convenient and user-friendly service for buyers and sellers alike.

Online shoppers should not be underestimated though, both in the virtual and physical world. They’re powerful. They don’t tolerate poor service from online businesses and they scrutinise the internet for the best deal and value. Online research informs decision making and consumers are entering brick and mortar showrooms armed with information and smart buying decisions.

The flexibility of mobility

The online car buying market’s growth can be attributed to an increase in mobi site users, a boost in dealers and private sellers advertising on sites as well as more buyers turning to virtual showrooms whether from their desktops, tablets or phones.

Mobi sites have seen a substantial growth with some sites reporting a growth of over 400% in mobile traffic. Smartphones have a significant influence on online shopping and many South Africans use their cellphones as a key research and shopping tool. Mobile is undoubtedly the current key driver of the classified business.

Younger generation driving the online highway

Another important driver of the popularity of online classifieds is the youthful buyer bracket. The majority of car buyers, according to Google Analytics are between 25 and 34 years in age and are predominantly male. Interestingly, it’s the females who are conducting research online with the purchases being made by males.

The Millennial generation consisting of people aged 18 to 34, plays a vital role in the future of online shopping as this group’s habits and attitudes will shape the direction of the online shopping environment.

New year signals a new ride

Car searches pick up at the beginning of the new year as consumers look at trading in their current cars for newer models. January is a particularly busy month for sellers and buyers trading online.

Newer models remain popular and are the most searched for category. They include cars from 2010 and newer with 2014 models being in high demand. In terms of prices the R50 000 to R150 000 price bracket is by far the most popular price range. Top models include Volkswagen, Toyota, Ford, BMW and Opel.

Convenience and price are the primary drivers of online purchases and as price continues to be such an important factor, especially when it comes to buying a vehicle, it is just a matter of time before online convenience becomes just as influential in the car buying market.