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The quick read

Carma customers trading in a car for a cheaper one rose to 5.3% in the third quarter

This represents a 1.9 percentage point increase from the same period last year

The rise in trade-downs to cheaper cars may impact dealer pricing and margin strategies

Australian dealers should monitor this trend to adjust their sales approaches

For dealers: Australian dealers need to be aware of this trend to adjust their sales strategies and maintain profitability

AI-assisted summary of the coverage below — check the original reporting before relying on specifics.

The ADME angle

The 1.9 percentage point increase in Carma customers trading down to cheaper cars in the third quarter is a significant shift in consumer behaviour that Australian dealers cannot ignore

What it means for pricing and margin

This trend suggests that consumers are becoming more price-sensitive, which could lead to downward pressure on prices and reduced margins for dealers

Dealers who fail to adjust their pricing strategies to reflect this shift may find themselves struggling to maintain profitability

Impact on sales approaches

The rise in trade-downs to cheaper cars also implies that dealers need to be more flexible in their sales approaches, offering more affordable options to customers who are looking to trade down

This could involve offering more competitive financing options or providing incentives for customers to purchase lower-priced vehicles

Adjusting to the new reality

To respond to this trend, dealers should review their current pricing and sales strategies to ensure they are aligned with the changing needs of their customers

One decisive action a dealer could take this week is to conduct a review of their current inventory and pricing to identify opportunities to offer more affordable options to customers who are looking to trade down

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Trade-downs to cheaper cars rise at Carma

The quick read

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More from the newsroom

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Trade-downs to cheaper cars rise at Carma

The quick read

The ADME angle

What it means for pricing and margin

Impact on sales approaches

Adjusting to the new reality

The quick read

Full coverage

More from the newsroom

Ready to stand out?Tell us about it.

The quick read

The ADME angle

What it means for pricing and margin

Impact on sales approaches

Adjusting to the new reality