Online shopping has boomed across a number of sectors in 2020, with Gumtree research showing that the trend has extended to online vehicle sales and purchases too. The research that surveyed over 12,000 vehicle owners across all nine provinces, revealed that 70% of South Africans would consider selling their vehicle online, while 59% would consider buying their next set of wheels online.
When asked whether they had already sold or bought a vehicle online, 18% had sold and 14% had bought online. Those most likely to sell their vehicle online include residents from Gauteng, the Western Cape and KwaZulu-Natal, who earn up to R50,000 per month. They are also, on average, under 49 years old. Those most likely to buy a vehicle online live in the same three provinces, are under the age of 34, and on average, earn less than R25,000 per month.
“Online shopping has increased significantly this year, with lower barriers to entry such as simple websites, well-designed mobile apps, and improved fulfilment seeing confidence among online shoppers growing,” says Estelle Nagel, brand marketing manager at Gumtree South Africa. “This confidence seems to be extending to big ticket items, with the many advantages of online shopping being as valid for vehicles as they are for other investment purchases.”
The advantages for those buying vehicles online according to the research included time saving, and the ease of being able to compare price, model, year, and mileage across potential options. Being able to shop 24 hours a day was also an advantage, along with experiencing less pressure from sales people.
Those selling vehicles online found the far wider reach of online marketing more appealing, along with being able to save time through quicker sales, and items being on sale 24 hours per day. They also found it easier to negotiate directly, and achieved higher prices than they would have if they were selling to a dealer.
Concerns about buying and selling a vehicle online included potential fraud, and being unable to see the true condition of a vehicle, as well as a worry about untrustworthy warranties. Arranging test drives could also be problematic.
Interestingly, 30 percent of respondents said that they would consider buying a vehicle costing more than R500,000 online. 19 percent said they look at a vehicle between R200,000.00 – R299,000.00 and 17 percent between R300,000.00 and R399,000.00.
The top five vehicle choices respondents would consider purchasing include Toyota (30%), Mercedes Benz (26%), Volkswagen and BMW (both at 24%) and Audi (18%), proving that the German marques are high up on the desirability rankings.
Interestingly, two thirds of respondents said that they were not nervous about COVID-19 if they were to buy or sell a vehicle online. Gumtree currently has more than 80,000 vehicles listed for sale by dealers and private sellers.
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