Motorists who aren’t confident in their ability to grind out a deal or check the hardware of their next car are set to benefit from a change in the used car market.
Following a decision by Carsales.com.au to sell vehicles direct to customers through its new Carsales Select website, Indian giant Cars24 has launched in Australia.
Both services will allow people to buy used cars online for set prices with a seven-day cash back guarantee.
Cars24 Australia chief executive Olga Rudenko says the new service is like online shopping – customers choose a car for a set price that is then delivered to their door, backed by a six-month warranty and peace of mind through a thorough technical inspection.
The intention is that it will attract drivers who don’t back their technical or haggling prowess.
“People like me are absolutely terrified of that process – you’ve just spent $25,000 on a car that may be a lemon, ” she said.
“Simply put, we are introducing a completely new fully online way of buying a car that doesn’t exist right now in Australia.
“In the UK and US the online car revolution has really happened while Australia is yet to experience it.
“It’s so obvious that there should be a better way to buy cars.”
Cars 24 has more than 1000 cars in stock across warehouses in NSW, QLD and Victoria ready to go, building on an enormous Indian presence with more than 200 outlets.
The Australian operation is inspired by the success of Carvana in America, which offers used cars for next-day delivery, or collection from eye-catching car vending machines stocked with dozens of vehicles.
Ms Rudenko said part of the Cars 24 appeal lies in the knowledge that all cars have a warranty, were subjected to technical inspections, and are relatively new models unlikely to cause trouble in the near future.
That helps reassure “busy professionals” who usually “enrol an army of friends to help them validate that their decision is a good one”.
The trend for direct sales of used vehicles follows similar developments in the new car market, where powerhouse brands such as Mercedes-Benz and Honda are adopting haggle-free fixed-price models.
Honda Australia director Stephen Collins said early feedback from a direct-sales model eliminating high-pressure sales tactics was positive.
“Customers are enjoying the transparency of it and the no-haggle [structure], that’s the key,” he said.
“We’re really pleased with the progress thus far. Feedback from customers is very much … that it’s smooth, it’s easy.”
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