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EDITION #5

TOP MAKES BY ENQUIRY | HOTTEST USED CARS | PRICING MADE EASY

AUTO MARKET WATCH Mazda CX-9 First SUV to win

INNOVATION, INVESTMENT & IMPROVEMENT

A defining year for the Australian automotive industry and carsales.

DEALER-FRIENDLY WHOLESALE BUYING The data tools that can impact your business.


Contents 03 Introduction

carsales’ Dealer Director Chris Polites gives his take on recent events and trends affecting Australian dealers.

04 Innovation, investment and improvement

From sales shocks to boundary-pushing innovation, 2016 has been a defining year for the auto industry and carsales.

08 Car of the Year: why it matters

We uncover why carsales COTY delivers the most benefit to new car buyers.

12 The auto market landscape

Get the full picture of where consumers go to buy new and used cars.

14 Top 5 enquired on makes

Which makes generate the most new and used enquiries?

15 Top 20 enquired on SUVs

Which SUV models are generating the most new enquiries in 2016?

16 Pricing made easy

How timely and actionable market intelligence keeps you ahead of the chasing pack.

18 Hottest used cars on the lot

The used vehicles in highest demand.

19 Dealer-friendly wholesale buying

Here’s how informed and transparent wholesale buying can impact your business.

20 Profit from greater peace of mind

Popular overseas, Certified Pre-Owned programs are gathering momentum in Australia.

22 Top 10: news and reviews 23 Top 10: video views

Connect with us and join in the conversation /carsales.com.au

@carsales

/carsales

The information contained in this document is general information only, is current only as at the date it is provided and has been prepared using information from carsales.com Limited’s (carsales) own internal analytics systems available at the time of preparation of this publication and from third parties. carsales takes care to ensure that the material in this document is accurate and complete, however it does not warrant the accuracy or completeness of any representations made in the document or that the material is suitable for any purpose. You are responsible for assessing the material and rely on it at your own risk. To the full extent permitted by law, carsales excludes all guarantees, warranties or representations of any kind in relation to the material and all liability for loss or damage (including indirect or consequential loss or damage) which may be incurred in connection with your use of or reliance on the material contained in this document. The information contained in this document is © carsales.com Limited and is carsales’ exclusive property. You will not acquire any intellectual property rights in this information. You must keep this document and its contents confidential and must not disclose it to any third party without carsales’ prior written consent. carsales.com.au

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Introduction It was also great to see more and more positive carsales app reviews left in the Apple App and Google Play stores. Mobile is both the present and immediate future of customer interaction, so we must all continue to explore how to best maximise the opportunity in this space and ensure we not only meet, but exceed consumer expectations, giving them the best experience possible.

Welcome to the latest edition of carsales Auto Market Watch. Exciting new technologies, changing consumer behaviour and the prospect of another domestic new car sales record - it’s been quite a year! And then on the horizon, there’s the prospect of more change in the global auto industry direct from the new man at the top in Washington or New York, wherever he decides to live... One thing is for certain, this industry never stops moving and tossing up surprises.

You can rest assured that the carsales team will continue to push the boundaries of innovation and agile processes, to further elevate the experience and value for all our customers and partners. From our lake of data to powerful actionable insights, editorial, advertising and dealer-friendly wholesale marketplace, carsales has much to offer in the way of tools that help drive sales, profitability and efficiency gains. Get in touch with your Performance and Account Managers for our solutions and ideas on how to enhance your performance further.

In a sign that the times have truly changed, two utility vehicles battled it out for October sales supremacy. Could the Toyota HiLux and Ford Ranger become the new Commodore vs Falcon rivalry that divides Australia in half? Time will tell and many other utility vehicles are snapping at their heels. Overall, there appears to be no let up in demand for vehicles in this segment. To end the year, we have prepared a bumper edition of Auto Market Watch for you. We go behind the scenes of the prestigious carsales Car Of The Year (COTY) award to uncover why credible and transparent awards provide so much value for consumers. We also explore an area that often flies under the radar - Certified Pre-Owned programs. Already very popular in the US, they’re also gaining traction in our market and winning more consumer eyes on carsales. It certainly makes for interesting reading. As always, there is plenty of our unique data and insights to dive into and videos to watch.

Finally, I’d also like to take this opportunity to wish all of our customers and partners a happy and safe festive season. We appreciate your custom and look forward to working together again next year. See you all in 2017!

Chris Polites

Once again, carsales delivered strong Unique Audience results over the July to October period, as measured by Nielsen’s Digital Ratings Monthly.

Dealer Director carsales.com Ltd

In September, carsales was proud to participate in this year’s Variety Bash for children in need. The Victorian event raised $1.3 million!

Check out drone footage of the carsales 1970 HT Holden crossing Australia’s red centre

carsales.com.au

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&

INNOVATION, INVESTMENT IMPROVEMENT We take note of carsales’ position in the market and review a defining year for the Australian automotive industry.

carsales.com.au

4


OVER THE JULY TO OCTOBER PERIOD, CARSALES HAD AN AVERAGE UNIQUE AUDIENCE OF OVER 2 MILLION - by far and away

Incredible performances and unthinkable results weren’t just isolated to this year’s AFL and NRL Grand Finals. In much the same way, 2016 has been a dramatic and defining year for the Australian automotive industry. With the end of Ford auto manufacturing in Australia, the ascent of utility vehicles to the top of sales charts, and another probable new car sales record, one couldn’t argue it any other way.

the leading auto category and classifieds website.1

October’s VFACTS report sent shockwaves across the industry and signalled a historic changing of the guard with the Toyota HiLux and Ford Ranger realising a one-two sales result. Juxtaposed with the increasing sales success of the Ranger, was the end of production of Australian-manufactured Ford vehicles as the company closed its factories in Broadmeadows and Geelong after 91 years.

products such as Pay Protect, Finance Calculator and Buyer Reservation payments. These upgrades have cemented the carsales buying and research experience with consumer expectations for trust, transparency and faster outcomes. For dealers, a new product portal was launched with better content and self-serve capabilities that increase user flexibility to get strategic with the breadth of carsales’ listing options. With the new portal in place, dealers can look forward to a continuous stream of ongoing enhancements.

Then with SUVs seemingly replacing the home-grown Holden Commodore, Ford Falcon and Toyota Camry as the vehicles of choice for Australian families, the 2016 Mazda-CX-9 – the company’s all new sevenseater – became the first vehicle of its type to win the prestigious carsales Car of the Year award.

Supporting product and user experience upgrades, were strategic marketing initiatives particularly with sports sponsorships during this year’s AFL and NRL seasons (including both nail-biting Finals series and Grand Finals), the Supercars championship and other captivating events. Overall, these initiatives helped expose carsales branding to a cumulative audience of over 100 million viewers.2

Following this, another - unimaginable - curveball was thrown in the form of Donald Trump’s astonishing victory in the US presidential election. His win might be half a world away, but it could bear significant ramifications for Australia’s automotive industry in the years to come.

Working hard for dealers and consumers

These investments have driven improved consumer brand awareness and sentiment measurements. Research conducted by leading research and analytics firm Nature, has found that carsales is not only the most thought of place for buying a new or used car, but also their preferred3. These statistics bode well for driving traffic to dealer stock over the course of 2017.

Closer to home, carsales has been striving to ensure that all customers receive the best possible support and opportunities. Continued investment in our site and our apps have ensured that they are delivering consistently solid performances in Nielsen’s Digital Ratings. Over the July to October period, carsales achieved an average Unique Audience of over 2 million - maintaining carsales.com.au as the leading auto category and classifieds website.1 Our continued belief and ongoing investment in product and technology, consumer marketing, global benchmarking and unwavering dedication to delivering the best consumer and dealer experience possible, is delivering for all customers. This year has seen the release of new mobile apps and multiple website user experience enhancements including a redesigned homepage, as well as new

carsales by the numbers in FY16

Nielsen Digital Ratings - July to October 2016 average; Auto Category includes auto editorial sites. carsales internal data - October 2016. 3 Nature research and analytics agency - carsales Brand Health report, November 2016. Online survey conducted 13 Oct – 17 Oct, 2016, n = 1,133 consumers. 1

2

carsales.com.au

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Where does carsales sit in consumers’ minds? Whether buying new or used, there’s no doubt - carsales is the place Australian consumers think to go. Q: “What places/websites/apps can you think of where people can buy new/used cars?” Spontaneous Awareness (Auto-Intenders & Wider Market)1 Buying a new car

CARSGUIDE DRIVE

CARSALES

MANUFACTURER CAR DEALER

GUMTREE

EBAY

7.1% 7.4% 11% 12%

47%

18% 20%

Buying a used car

CARSALES GUMTREE DRIVE

EBAY

CARSGUIDE

4%

9%

22%

52%

39%

It’s clear that Australian consumers prefer to buy and sell cars on carsales. Q: “You said you would go to the following for buying a new/used/selling a car. If you had to choose one tomorrow, which one would you most prefer?” Preference (Auto-Intenders & Wider Market)1 CARSALES DRIVE CARSGUIDE

1%

5%

GUMTREE

14%

46%

Nature research and analytics agency - carsales Brand Health report, November 2016. Online survey conducted 13 Oct – 17 Oct, 2016, n = 1,133 consumers.

1

Commitment to continuous improvement Over December and January, carsales branding will debut on cricket pitches across the country, featuring on the jerseys, ground signage and collateral of the Melbourne Renegades men’s and women’s teams. This sponsorship will further align the carsales brand with buyers and help funnel more traffic to

summer listings. Plus with innovation and agility at the very core of carsales, keep an eye out for the next generation of website and product updates that further elevate the experience for consumers and dealers alike.

Be sure to catch carsales branding during the Melbourne Renegades’ 8 games in the 2016/17 Big Bash League. We’re expecting a cumulative audience of over 10 million people!


Tools for Every Stage of Your Selling Cycle From sourcing stock to selling it, carsales has the solutions to help you move your inventory.

For over 15 years carsales data, insights and intelligence has helped shape a suite of products and solutions aimed solely at one thing; helping our dealer network sell more stock. This also creates business wide opportunities in parts, servicing, finance and insurance. Here’s how carsales is with you every step of the way through the selling cycle.

Pricing Tools

Find Great Stock LiveTrade

LiveMarket

Inventory Management

Lead Management AutoGate, AutoGate Pro

AutoGate

Helping you reach over Promote Your Dealership

2 million people

on carsales.com.au1

Photography

Photography, carsales Image Library, 360 Photography

Search Engine Marketing, Website Templates, Display Advertising, Main Event sales advertising

Publish to Site

Build Buyer Trust RedBook Inspect mobile inspections, CarFacts History Report

Australia's Number 1 Auto Classifieds Site

Boost Your Reach

Top Spot, Showcase, Multi Listing, Top Deal, Ultimate Boost

It’s time to take a closer look. Contact your carsales Performance Manager.

Nielsen Digital Ratings Monthly, July to October 2016 average.

1

carsales.com.au

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CAR OF THE YEAR — Why it matters

All-new seven-seat Mazda CX-9 SUV takes home carsales Car of the Year, but does it mean anything for buyers? Absolutely, and here’s why.

carsales.com.au

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The 2016 carsales Car of the Year awards has been run and won… And the all-new Mazda CX-9 has been crowned the overall winner. Judged the top vehicle across carsales’ 13 lifestyle vehicle categories, each with its own winner, the seven-seater is the first SUV to win the prestigious overall title.

There is no shortage of new car awards in the Australian marketplace. Some are opinion based, some are governed by long standing tradition. Some are arbitrary, mathematically-based awards that year after year seem to throw up oddball victors that new car buyers are happy to avoid in their droves.

A win such as this is key marketing fodder for the car company in question. But what value do awards like the carsales Car of the Year (COTY) have for consumers?

And then there’s carsales’ COTY – a process that combines strengths from right across the carsales group’s ‘toolset’. It’s this combination that yields the benefits for consumers.

Plenty, we’d argue…

We’ve detailed the full process elsewhere but in essence what separates our awards from others is the combination of strict eligibility criteria (that defines the categories under which cars are judged), informed opinion and data. In 2016, expert ‘seat of the pants’ opinion formed 70 per cent of the potential 100 point maximum score for each vehicle. With cost to run, retained value, consumer engagement, affordability and a new ‘Safety Bonus’ comprising the remaining 30 per cent. As more objective data sets become available and are added in the future, we will almost inevitably review the above ratios. And we’ll keep moving the goalposts. For instance, while models with standard reversing cameras across their full range got Safety Bonus points in 2016, next year this feature MUST be standard for the car to even be eligible in key mass-market categories like Family Car and SUVs. On current specification levels, this decision alone will knock out some of the most popular models sold Down Under. But carsales COTY is not a popularity award. Advancing such requirements and doing the hard data crunching means new car buyers can short-list our finalists and award winners across the various categories with confidence. In a marketplace where there are literally dozens of strong choices in most vehicle segments, this is a boon for consumers. That we give our testers a voice to talk about the way the cars feel to drive and own is also important. While we’d eventually like hard data sets to contribute up to 50 per cent of the final score, the ultimate step in the carsales COTY process will always remain a hands-on ‘sanity check’ of each and every finalist.


This year the judging cast that undertook that key final step includes some of the most experienced motoring journalists in the country - over 100 years combined experience. The panel was also a diverse one, with both sexes represented across a range of age groups to ensure the final verdict represents a broad sample of the buying population. Focussing on five key criteria: VALUE FOR MONEY

INNOVATION & DESIGN

SAFETY

DRIVEABILITY

PACKAGING & ACCOMMODATION

Our judges examined each car in a static setting, discussing and investigating the vehicles various attributes and relevance before subjecting each of them to three days and almost 15,000km of back-toback road loops – first two up and then, eventually, with every seat filled. When most new car buyers road test an average of fewer than two cars before they purchase, this armoury of expert opinion is invaluable.

What happens when more than a century of motoring journalism meets the new car class of 2016? Watch the video and join in the conversation!

carsales.com.au

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Car of the Year 2016 winners The very best new cars on sale across a range of lifestyle categories that define excellence, innovation, class-leading safety, performance and value for money.

Car of the Year

Best First Car

MAZDA CX-9

Best City Car

SKODA FABIA

AUDI A3 →

Best Family Car Under $30K

Best Family Car Over $30K

Best SUV Under $50K

MAZDA 6

SKODA OCTAVIA →

MAZDA CX-9

Best SUV Over $50K

Best Prestige Car Under $100K

Best Prestige Car Over $100K

Best Performance Car Under $100K

Best Performance Car Over $100K

Best Offroad 4x4

Best Tradie Vehicle

Best Green Car

AUDI Q7 →

MERCEDESBENZ S400 →

PORSCHE 911 CARRERA S →

FORD RANGER WILDTRAK →

AUDI A4 →

FORD FOCUS RS →

FORD RANGER WILDTRAK →

BMW I3 →


THE AUTO MARKET LANDSCAPE

Number One overall and the preferred auto classifieds site for Australians looking to buy New Cars

carsales remains Australia’s #1 Auto Classified site

UNIQUE AUDIENCE (UNDUPLICATED, ACROSS DEVICES)1 For the July to October period, carsales' 2million+ average Unique Audience is more than double that of CarsGuide. Nielsen's Digital Ratings Monthly metric is the industry currency for unduplicated, cross device measurement for smartphone, tablet and desktop.

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

CARSALES

GUMTREE

CARSGUIDE

DRIVE

TOTAL VISITS BY DEVICE TO CARSALES.COM.AU (FOR THE PAST 12 MONTHS)2 iPhone and Android mobile app traffic increased 24% and 19% respectively year on year. Desktop traffic remains stable.

20,000,000 15,000,000

10,000,000 carsales Desktop carsales Mobile Website iPhone App Android App iPad App

5,000,000 0

Oct 2015

Dec 2015

Feb 2016

Apr 2016

Jun 2016

Aug 2016

Oct 2016

TIME SPENT PER PERSON ON WEBSITE 3

7 mins 3 mins DRIVE CARSGUIDE GUMTREE CARSALES

33 mins

87 mins

Audience engagement on carsales continues to lead the auto category. For the July to October period, the average time spent per person on carsales was more than 10x higher than CarsGuide.

Sources: 1. Nielsen Digital Ratings Monthly, July to October 2016 average. Gumtree refers specifically to Gumtree Automotive, not whole site. 2. carsales Internal Data, Webtrends October 2015 to October 2016. 3. Nielsen Digital Ratings Monthly, Time Per Person, July to October 2016 average. Gumtree refers specifically to Gumtree Automotive, not whole site.


carsales

CarsGuide

Gumtree

Drive

Performance on brand attributes Consumers recognise carsales as a market leader, calling out the easy search and filter capabilities.

A MARKET LEADER for buying/selling cars.4

32%

17%

36%

57%

MAKES IT EASY

to narrow down search options to whatever I want.4 35%

22%

38%

52%

UN-DISRUPTABLE MOBILE FIRST HOW CONSUMERS ACCESSED CARSALES OVER THE PAST YEAR 5

27%

39%

MOBILE SITE

APPS

66% of traffic to carsales was via mobile over the past year, mirroring consumer device preference trends. As carsales continues to invest and innovate a better mobile experience, look out for updates.

34%

DESKTOP

CARSALES APP DOWNLOADS 6

AVERAGE USER APP RATINGS 7

In four years, the carsales app has amassed a total of 4.33 million downloads, an impressive number in our space.

Continuous investment in app enhancements has maintained a positive effect on user experience, resulting in high review ratings.

2.92m 1.28m DOWNLOADS

DOWNLOADS

4.33m

132k

DOWNLOADS

4.5/5 RATING

TOTAL DOWNLOADS

4. Nature research and analytics agency - carsales Brand Health report, November 2016. Online survey conducted 13 Oct – 17 Oct, 2016, n = 1,133 consumers. 5. carsales internal data, Webtrends, October 2015 to October 2016. 6. iTunes, Google Play and Microsoft stores, October 2016. 7. iTunes and Google Play stores, October 2016.

4.4/5 RATING


Top 5 enquired on makes Discover which manufacturers have received the most new and used enquiries over the past year. The increasing popularity of the Ranger and demand for the first global Mustang, has propelled Ford to lead 6 of the 8 Australian states/territories in new car enquiries over the past 12 months. Volkswagen and Mazda prevented a clean sweep for Ford, leading new car enquiries in Tasmania and ACT respectively.

When it comes to generating used car enquiries, Toyota is the leading make in every state/territory. The top 3 makes were consistent in every state and territory except for the NT, where Nissan pushed Holden to 4th position.

New car enquiries across Australia Despite a slowdown in sales of Australian-produced models, Ford’s new car enquiry is booming across the nation as consumers flock to the Ranger and Mustang.

ACT

NSW

NT

QLD

SA

TAS

VIC

WA

1

MAZDA

FORD

FORD

FORD

FORD

VOLKSWAGEN

FORD

FORD

2

FORD

MAZDA

TOYOTA

MITSUBISHI

MAZDA

FORD

NISSAN

HYUNDAI

3

MITSUBISHI

HYUNDAI

MAZDA

NISSAN

HYUNDAI

SUBARU

HYUNDAI

VOLKSWAGEN

4

NISSAN

MITSUBISHI

NISSAN

MAZDA

VOLKSWAGEN

MITSUBISHI

MITSUBISHI

MITSUBISHI

5

LAND ROVER

NISSAN

AUDI

HYUNDAI

SUBARU

MAZDA

KIA

NISSAN

Used car enquiries across Australia Highly regarded nameplates such as Corolla, HiLux and Camry helped push Toyota to number 1 for used car enquirers across every state and territory.

ACT

NSW

NT

QLD

SA

TAS

VIC

WA

1

TOYOTA TOYOTA TOYOTA TOYOTA TOYOTA TOYOTA TOYOTA TOYOTA

2

HOLDEN HOLDEN

FORD

HOLDEN HOLDEN HOLDEN HOLDEN HOLDEN

3

FORD

FORD

NISSAN

FORD

FORD

4

SUBARU

BMW

HOLDEN

NISSAN

MITSUBISHI

SUBARU SUBARU SUBARU

5

VOLKSWAGEN

MAZDA

MITSUBISHI

MITSUBISHI

NISSAN

MITSUBISHI

FORD

FORD

VOLKSWAGEN

FORD

NISSAN

Source: carsales internal data - October 2015 to October 2016. carsales.com.au

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Top 20 enquired on SUVs Consumer preference for SUVs shows no sign of slowing down. So which models are generating the most new enquiries in 2016? The Hyundai Tucson has ended October 2016 as the SUV that’s generated the most new enquiries on carsales so far this year. Mazda’s CX-5 has dropped off from June highs, perhaps in anticipation of

the next-generation model that’s predicted to hit Australian shores in early 2017. Enquiries on the Jeep Grand Cherokee have fallen steeply in 2016, mirroring the brand’s overall sales decline.

Click the report below and dive into the data! Click to Filter by Make

Click to Filter by vFACTS Segment

Top 20 SUVs Enquired On GRAND CHEROKEE

0.7%

X-TRAIL

0.6%

TUCSON

% Lead

0.5%

QASHQAI

QASHQAI

0.4%

SANTA FE

CX-5 SPORTAGE

0.3%

CX-3 0.2%

QASHQAI

0.1%

ASX

GLC250

PAJERO

DEFENDER

0.0% Oct 15

Nov 15

Dec 15

Jan 16

Feb 16

Mar 16

Apr 16

May 16

Jun 16

Jul 16

Colour Legend FORD

ISUZU

KIA

MAZDA

MITSUBISHI

SUBARU

HYUNDAI

JEEP

LAND ROVER

MERCEDES-BENZ

NISSAN

TOYOTA

Data shown is position ranking based on number of enquiries per month, grouped within its VFACTS segment.

Source: carsales internal data, Business Intelligence. Based on enquiries. New cars from SUV segment. carsales.com.au

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Aug 16

Sep 16

Oct 16


Pricing made easy Eliminate guesswork, keep ahead of your competition and align with your customers - it’s all possible with timely and actionable market intelligence. difficult and time-consuming strategic analysis.

Pricing is critical to the ongoing success of an Australian car dealer operating in a very competitive marketplace.

LiveMarket provides actionable insights from a mix of big data from Australian private sellers, dealers, RedBook and 365 days of transactions generated by Australia’s #1 auto classified website; carsales. It’s a comprehensive picture of the Australian marketplace that facilitates enhanced decision-making, that can translate into real inventory management and profitability gains.

Navigating market trends, keeping an eye on competitors, and walking a tightrope between attention-grabbing pricing and leaving profit on the table, is a juggling act and daily reality for many dealers.

Intelligence for better decisions

Unique data richness

Consequently, access to comprehensive and accurate market intelligence is now more valuable than ever. It’s this knowledge that lays the foundation for better pricing, appraising and stock decisions, that result in greater stock turn whilst maintaining margins.

No longer should pricing decisions and strategies be based exclusively on gut feel or laborious manual processes. Intelligent software such as LiveMarket takes the difficulty out of competitor analysis of both dealer and private sellers, and allows dealers to immediately recognise where their stock sits in relation to the 220,000 plus cars listed for sale on carsales.

That’s why more and more dealers are taking advantage of industry tools such as LiveMarket; the online marketplace intelligence tool that does the

BIG DATA

365 days of Dealer data

365 days of Private seller data

60 years of RedBook data

Data from 220,000 cars for sale now on carsales.com.au

Information

Converting complex data into powerful, relevant and easy-tounderstand insights. Comprehensive market intelligence at your fingertips. Actionable insights for dealer action

carsales.com.au

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LIVEMARKET PROVIDES ACTIONABLE INSIGHTS FROM A MIX OF BIG DATA

Data-driven improvement from market intelligence is only possible when these tools are powered by the highest quality and most relevant data available. On average, one car is sold every minute on carsales. com.au. As a consequence, the insights delivered by LiveMarket are as valuable and relevant to the Australian market as possible, and empower dealers to take informed action and make improvements.

from Australian private sellers, dealers, RedBook and 365 days of transactions generated by Australia’s #1 auto classified website.

5 ways actionable intelligence keeps you ahead

1

Powerful competitor analysis

4

Dealer-friendly information

LiveMarket combines the data from dealer listings with data collected from thousands of dealer transactions over the past 365 days. This keeps dealers better informed about competitor behaviour in their local, state and national markets.

Instantly identify trends in fastmoving stock, highest volume stock and market days supply. Plus compare your performance to markets via views to lead ratio, price difference, photos/ comments, stock mix and other metrics.

2

Unrivalled Australian private seller data

5

Seamless AutoGate integration

carsales is Australia’s #1 auto classifieds website. The sheer volume of private seller data generated by thousands of daily transactions, filters through to dealer-friendly insights.

3

60 years of industryleading RedBook data

LiveMarket is packed full with over 60 years of RedBook data. RedBook has unrivalled depth in unique Australian motor cars, model grades and specifications.

There’s no downtime and it’s point-and-click easy to use. LiveMarket integrates automatically with AutoGate to improve dealer efficiency and ensure that market analysis is up-to-date.

For more information on LiveMarket, contact your carsales Performance Manager or email livemarket@carsales.com.au.

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Hottest used cars on the lot Thanks to the power of LiveMarket, discover the vehicles that have the highest demand based on available supply in the used car market, between July and September. The ever-popular 2014 Hyundai Accent is the hottest used vehicle on carsales. Closely following the Accent is the 2011 Nissan Pathfinder. Consumer demand for used utility vehicles shows no signs of slowing down, representing 5 of the top 10 vehicles.

DAYS

• Suzuki Grand Vitara: 2010, $15,480 • Renault Clio: 2013, $17,408

DAYS

• Mazda BT-50: 2015, $37,776 • Toyota FJ Cruiser: 2012, $33,749

DAYS

26

DAYS

• Hyundai Accent: 2014, $12,312

• Nissan Pathfinder: 2011, $29,428

DAYS

27 28

19

21

Get all this data and much more by signing into LiveMarket now or if you aren’t subscribed, find out more.

18

• Subaru Impreza: 2015, $22,255

23

• Ford Mondeo: 2014, $15,252

DAYS

• Mercedes-Benz B200: 2007, $11,344 • Nissan Qashqai: 2014, $23,964

The lower the days supply, the faster a vehicle is likely to sell.

DAYS

• Suzuki Grand Vitara: 2012, $17,714

• Nissan Pathfinder: 2012, $29,493

This information is based on the number of days it would take for current stock in the marketplace to deplete if not replenished. To find out more about LiveMarket, email livemarket@carsales.com.au.

Source: carsales internal data, Livemarket, July to September 2016. Cars 2004-2015, minimum 30 delisted over previous 60 days. Does not include 2016 models. carsales.com.au

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Dealer-friendly wholesale buying Despite perceptions, buying through wholesale channels doesn’t automatically translate into low prices or high retail margins. Quicker delistings

Without knowledge and research of what’s moving in the market and at what price, a theoretical wholesale bargain can quickly morph into an old, difficult-tomove stock item. However with constant shifts in consumer demand and stock supply, this critical research can be difficult and time-consuming to undertake accurately.

The results of purchasing with confidence on a dealer-friendly marketplace are evident in analysis of vehicles delisted on carsales in the October to November 2016 period:

LiveTrade Exclusive purchased vehicles were delisted 66% faster than the dealer stock average on carsales.1

In addition, wholesale buying can often come with a great deal of uncertainty - uncertainty over the current condition of a stock item, uncertainty over the stock item’s history and uncertainty over additional costs involved in the final purchase.

Intelligence for better stock decisions

Greater transparency with inspections

Next-generation, dealer-friendly wholesale marketplaces such as LiveTrade, aim to eliminate much of the uncertainty associated with wholesale stock acquisition. In the case of LiveTrade Exclusive vehicles, each stock item is valued according to up-to-date intelligence from LiveMarket. This helps dealers make a more informed and confident stock purchase decision, with good knowledge of potential stock turnover and profit outcomes.

Even with the most professionally-produced photographs and videos, making an accurate assessment of vehicle condition can be a challenging task. Leading wholesale marketplaces take the guesswork out of judging stock quality and condition, through inspection reports listed against each stock item. With an unbiased and professional assessment of vehicle condition, dealers are enabled to buy with greater confidence and transparency.

For more information on LiveTrade, contact your carsales Performance Manager. Calculated by comparing the average time of LiveTrade Exclusive purchased vehicles delisted on carsales (22 days) to dealer vehicles delisted on carsales (66 days), in October to November 2016.

1

carsales.com.au

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Profit from greater peace of mind Lost amid attention-grabbing talk about EVs, hybrids and autonomous technology, is the increasing popularity of Certified Pre-Owned (CPO) programs in Australia. Valuable differentiator

When compared to similarly mature markets, CPO cars do not make up a great proportion of stock listings in Australia. In the US for example, 15% of online dealer listings are CPO-based. However in Australia, it is just under 4%.

There are both dealer and manufacturer-backed CPO cars in the market, but in this edition we’ll focus on manufacturer CPO programs. Many dealers love to sell CPO cars, as consumers are often willing to pay more to reap the benefits of the certification. Technically, this should mean dealer profit margins are higher on CPO cars.

Times are changing however and there has been a distinct shift in momentum. We see the percentage of CPO listings increasing substantially in 2017. Luxury makes Mercedes-Benz, Audi, BMW and Aston Martin offer CPO programs, in addition to Toyota, Ford and a host of makes across varied pricepoints.

In addition, only authorised franchised dealers can sell a manufacturer CPO car. In many instances, stringent inspections and repairs with genuine parts are required for a car to obtain certified status. Overall for dealers, CPO cars are an effective point of stock differentiation that can help increase views and leads.

Without a doubt, CPO cars are an increasingly popular and tantalising prospect for value-conscious consumers looking to minimise their risk and buy a used car in like-new condition. Purchasing a CPO vehicle can often save the consumer thousands of dollars, buying a car in good condition that is reliable and likely to still be under warranty. In many cases a CPO program also delivers a buying experience that mimics a new car sale, helping to deliver high customer satisfaction.

carsales.com.au

More views and leads The stats are compelling too. Consumers are gravitating to CPO cars. On carsales, CPO cars generated more enquiries per view and significantly increased conversion rates.

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CPO listings capture consumer attention on carsales For the period January to September 2016, CPO listings on carsales for two manufacturers delivered an average:

115% increase in views per car

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42% increase in leads per car1

Times are changing, however, and there has been a distinct shift in momentum. WE SEE

“Younger” used cars So why is the CPO segment expanding? With the average age of fleets decreasing ever so slightly, car turnover is increasing and “younger” and lower mileage used cars are hitting the market. These cars are easier to certify as they are often still under warranty and devoid of high kilometres or damage.

THE PERCENTAGE OF CPO LISTINGS INCREASING SUBSTANTIALLY IN 2017.

It’s easy to see manufacturers such as Kia - who offer a 7-year warranty on new cars - adopting and benefiting from a CPO program. Likewise with more and more cars being sold with a guaranteed future value, turnover of cars will increase and more used cars with existing warranties will hit the market.

Capitalising on the CPO opportunity With CPO programs and cars a powerful point of differentiation for manufacturers and dealers alike, AutoGate makes it easy to publish a CPO on carsales. Contact your Performance or Account Manager for more information. In the recent carsales Auto Futures Upfronts, we stated that “CPO is a customer data goldmine”. The 3 main benefits are:

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CPOs present opportunity to keep owners in the brand and franchise family In most cases, only vehicles that meet strict standards are selected for inclusion in CPO programs. These vehicles are more likely to avoid issues and deliver a satisfactory ownership experience.

2

Data capture on lifecycle valuable (vs losing against P2P, independent dealers) This data can be used to more-effectively upsell the vehicle owner to a new car.

3

Brand value is strengthened CPO programs can help reinforce positive perceptions for quality and reliability.

Comparison of CPO on approved vs non-approved dealer stock, January to September 2016. Carsales internal data.

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TOP 10:

News and review articles Discover the most popular news and reviews viewed on motoring.com.au in Q3 2016. Click on an image to read the article.

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Mazda RX-9 locked in →

2

P-Plate laws explained →

3

The truth about 3500kg towing →

4

Next Subaru WRX STI in 2018 →

5

New Car Calendar →

6

Honda Civic RS v Mazda3 SP25 GT 2016 Comparison →

7

4WD Dual-Cab Ute 2015 Comparison →

8

Haval H2 2015 Review →

9

Five best off-road 4x4s →

10 Renault Koleos 2016 Review → Brought to you by motoring.com.au

carsales.com.au

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TOP 10:

Video views Check out the most popular videos viewed on motoring.com.au in Q3 2016.

Click on an image to watch the video.

Honda Civic v Mazda3 2016: Video Comparison →

Simpson by Softroader →

Kia Sorento v Mazda CX-9 v Holden Captiva: Video Comparison →

Ford Focus RS v Mercedes-AMG A 45 v Audi RS3: Track Test →

Holden Colorado 2016: Video Review →

Mazda CX-9 2016: Video Review →

Skoda Octavia RS v Subaru Levorg GT-S: Video Comparison →

Ford Focus RS 2016: Video Review →

Toyota 86 2016: Video Review →

Honda NSX arrives Down Under →

Brought to you by motoring.com.au carsales.com.au

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Contact Us Get in touch to learn how Australia’s No. 1 auto classifieds network can benefit your business. Alternatively drop us a note on trademarketing@carsales.com.au.

Dealer enquiries

Advertising solutions enquiries

Chris Polites P: (03) 9093 8650

Vanya Mariani P: (03) 9093 4575

OEM enquiries

carsales.com Ltd

Agostino Giramondo P: (03) 9093 8676

Level 4, 449 Punt Road Locked Bag 9001, Richmond VIC 3121 P: (03) 9093 8600 (Reception)

Proudly part of the carsales network carsales.com.au

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Auto Market Watch | Edition 5