Carsales Dealer Pricing

LPasjes on 23/07/2024 - 17:37

Long time lurker…first time caller. Thanks for taking my call.

A mate of mine runs a smallish prestige car yard in regional Victoria. Been doing it for about 18 months…tough going. Has about 50 cars in stock…most of them $50k+. He's paying a small fortune to carsales every month - he reckons probably works out at least $300+ per car as he's on a per lead plan.

He doesn't want to change to fix price - if you don't sell the car in 28 days it rolls over and you pay another fee.

Any dealers have any advice on what the best type of arrangement is for a dealer this size?

Cheers

Automotive

Related Stores

CarSales.com.au
CarSales.com.au

Comments

  • easternculture on 23/07/2024 - 17:47
    +25

    Maybe its time to look into another line of work if he isnt turning any profit in 18 months.

    Facebook marketplace seems like another avenue to advertise. Honestly marketplace is my first go to for anything

    • 2esc on 24/07/2024 - 11:58
      +14

      Tough going and not turning any profit in 18 months can be entirely different things.

      I know farmers who'll say its tough but buy a new car every year and a overseas holiday every year.

      So he might be making something just no where near what he had hoped.

      • Poor Ass on 24/07/2024 - 13:34
        +4

        His mate is OP's alter ego

      • sauce2k on 25/07/2024 - 08:32
        +4

        Settle down mate. You took it personal, this is OZB everyone has a “mate” who doesn’t know how to use the internet hence asking for a mate to post and find out.

  • masterqur on 23/07/2024 - 17:51
    +9

    Try facebook marketplace perhaps.

    • Mikinoz on 23/07/2024 - 19:20
      +4

      So many scams on marketplace now

      • Ade99 on 24/07/2024 - 08:03
        +2

        No worse than gumtree with all of those buyers being offshore on a gas rig and need to use a vehicle transport company to collect your pride and joy, all sweetened by a no haggle agreement of what your advertised price was :-)

        • Mikinoz on 24/07/2024 - 21:01

          I know it's hard to believe it's worse than scumtree. At least that's just buyers. On FB marketplace it's both buyers and sellers that are dodgy

    • Tleyx on 25/07/2024 - 14:31

      Business accounts cant use marketplace

  • MS Paint on 23/07/2024 - 18:12
    +5

    @spackbace might confirm but I think carsales charge a dealer $200+ per lead (eg a simple phone call that might last 10 seconds to clarify a detail).

    If you want to piss off a dealer (for whatever reason) just harass them via carsales.

    What is the population of this regional town?

    Edit: looks like it's Ballarat.

    I don't think carsales helps regional dealers as carsales make the dealership location so secretive. I'm sure there's plenty in Melbourne's western suburbs who would drive an hour to Ballarat to check out the right car.

    Definitely try marketplace as suggested above. Gumtree is dead in my opinion even though it seems to be just cars these days.

    • JIMB0 on 23/07/2024 - 18:39
      +9

      carsales make the dealership location so secretive

      The trick is to look at the pictures for clues. Usually they show the map screen with the location, the dealer logo in the background and the number plate surrounds etc. You can also google search the phone number.

      • MS Paint on 23/07/2024 - 18:53
        +2

        Yes, I've used all those clues in the past. Sometimes they take photos out front of the dealership and you can Google the business next door from the picture. Isn't the phone number given by carsales generic?

        • JIMB0 on 23/07/2024 - 20:33

          On desktop its the dealers actual number, need to type it into google yourself as it is also an image. On the mobile I believe it dials a different number for tracking/privacy purposes.

      • spackbace on 23/07/2024 - 19:00
        +18

        No, the actual trick is to scroll to the very bottom of the desktop site. Dealer's details always there 😉

        • MS Paint on 23/07/2024 - 19:15
          +1

          I'm always on mobile so that makes sense. Cheers

        • Typical16-bitEnjoyer on 23/07/2024 - 19:58
          +4

          Bloody Carsales always convert the LMCT to an image so you can't search for it quicker…

        • RotundPolarBear on 23/07/2024 - 22:30
          +1

          Wow very useful, thanks!

        • bobbified on 24/07/2024 - 12:54
          +1

          I did this before (googled the LMCT to find the direct contact details) and the dealer thanked me for it! 🤣

          This was 5 years ago and he said it was about $40 each message.

    • spackbace on 23/07/2024 - 19:00
      +1

      Around $90 per lead last I heard, but yeah still a considerable amount

      • fantombloo on 23/07/2024 - 21:32

        What constitutes a lead? Just a click to message / get phone number or something more?

        • spackbace on 23/07/2024 - 22:39
          +2

          Putting in an enquiry or calling through

          • fantombloo on 23/07/2024 - 22:49

            @spackbace: Wow that's hefty. If you don't mind answering - what sort of conversion rate do you expect on such leads?

    • cloudy on 23/07/2024 - 19:11

      I don't think carsales helps regional dealers as carsales make the dealership location so secretive

      I looked at a number of cars before buying and many dealers make fairly detailed info of whrre they are (ie: we are located 20 mins NE of capital ETC ETC). So I don’t think this is an issue.

    • boomramada on 23/07/2024 - 22:17
      +6

      Dealer pricing? https://dealersignup.carsalesnetwork.com.au/carsales/

      • MS Paint on 23/07/2024 - 22:24
        +5

        Great info. Bloody license to print money for carsales.

        • boomramada on 24/07/2024 - 08:36

          It is called Monopoly probably Google take most of the money by putting them on top in the search results, but you can join them ASX: CAR, there was a time we had to buy a magazine called Trading Post LOL

      • JIMB0 on 24/07/2024 - 09:04
        +6

        $69* per email or
        phone enquiry
        For vehicles priced
        from $8,500 - $69,999

        Nice for Carsales

    • singlemalt72 on 24/07/2024 - 09:50

      Generally with dealers you can divine enough info from the photos to work out the dealership and call them directly - that's what I have always done to deny Carsales their extortionate dealer fees.

  • freefall101 on 23/07/2024 - 18:26
    +5

    How long does it take him to move each car using carsales? Advertising is all about return on investment, if it's only taking 2 months to move each car then $600 advertising to move a $50k item is actually really good - and that should be built into his budget. If he's had the same car there for 18 months clocking up $300 a month, that's not so good.

    If he only has 50 cars I'd assume he has a per-car strategy on how to move them, what the advertising budget is and where the market is. Car forums, car shows, trying cheap/free methods (gumtree, marketplace, etc), needs to be a mix and he needs to learn the market. Getting into car forums to figure out why people aren't buying them is also important, if they're prestige cars they're not going to appeal to everyone. He might be getting his pricing wrong if it's not moving, not everything is an advertising problem. If people aren't biting off carsales - the site where most people looking for a car go - there's questions to be asked.

  • Trying2SaveABuck on 23/07/2024 - 18:34
    +7

    Probably one of the worst times in Australian history to be selling up market cars….

    • pharkurnell on 23/07/2024 - 18:56

      ^^^ this..

      hes probably selling the right cars at the wrong time and wrong place…

    • JIMB0 on 23/07/2024 - 20:30
      +5

      There's still plenty of cashed up people around. No point keeping it in the bank losing value in this inflationary period, may as well enjoy it.

      • Trying2SaveABuck on 24/07/2024 - 09:48
        -2

        People with cash dont keep the bulk of their money in the bank….

        • sauce2k on 25/07/2024 - 08:34
          +1

          I’m not sure why you were negged. Different interpretations- when I hear people say they got cash it’s not ur typical mortgage holders got spare cash in the offset account. Cashed up people invest.

    • Phoenixzeus on 25/07/2024 - 14:30
      +1

      Plus a good chunk of the people in the market for a 50k+ car are probably looking at an EV.

  • spackbace on 23/07/2024 - 19:02
    +5

    If he's priced to the market, with good photos, he should be moving them.

    Has he even worked in a dealership before? Usually you'd open a yard after working in the industry, building the skills and contacts required to go out on your own

  • cloudy on 23/07/2024 - 19:13
    +1

    The problem is cars aren’t selling well these days.

    I can find many statements from many car dealers saying how hard it is to move cars right now, a combination of cost of living and high interest rates is making it hard to sell cars.

    The higher value cars are also more likely to be financed as well, so high interest rates makes it even harder than cheaper cars.

    • dtc on 23/07/2024 - 19:18
      +4

      “Australian new car sales have continued at a record pace in 2024 with half year deliveries of 632,412 vehicles beating 2018’s record of 605,522, according to the Federal Chamber of Automotive Industries (FCAI).”
      https://www.racv.com.au/royalauto/transport/cars/australian-…

      Lots of cars being sold.

      • Typical16-bitEnjoyer on 23/07/2024 - 19:55
        +1

        new car sales

        • dtc on 23/07/2024 - 20:01

          that wasn’t the comment I was responding to

          • altomic on 23/07/2024 - 20:37
            +1

            @dtc: these aren't the droids you are looking for.

            • Sinnerator on 25/07/2024 - 08:44

              @altomic: yes they are, and that's luke sitting next to them, the old man is complicit also

      • cloudy on 23/07/2024 - 20:49
        -1

        Those in the industry know.

        https://openbriefing.com/AsxDownload.aspx?pdfUrl=Report%2FCo…

      • netjock on 23/07/2024 - 21:25
        +2

        3 of 4 top new car sales are not cars. More like commercial vehicles

        • Rob-4x4 on 24/07/2024 - 08:29

          All the Ranger/Hilux etc being purchased by businesses and Tradies using the taxpayer funded government handouts.

          That is why they are top sellers

      • dwarves on 24/07/2024 - 20:24

        Sure, sure, but how many of those were ordered a very long time ago? Answer: a lot. Supply has caught up with historical demand. Dealerships can’t give new cars away at the moment.

  • Typical16-bitEnjoyer on 23/07/2024 - 20:00
    +2

    smallish prestige car yard in regional Victoria.

    Your mate would probably have better luck running a mediumish non-prestige car yard in metro Victoria.

  • Dollar General on 23/07/2024 - 20:07

    As a carsales shareholder, I like what they are doing

    • MS Paint on 23/07/2024 - 20:28
      +3

      The thread was killed by the mods but what about the guy that quit his job to develop a competitor to carsales?

      • gomertose on 23/07/2024 - 20:39
        +2

        Mods were probably carsales shareholders haha /s

      • randomthought on 23/07/2024 - 21:08
        +1

        Is that what happened? I thought carlisting looked good

        • MS Paint on 23/07/2024 - 21:37
          +3

          Once the URL was unveiled it possibly came across as advertising. I don't really know though.

          There's 1600 cars on there now so a fair effort.

        • Moderatorhamza23 on 25/07/2024 - 13:32

          https://www.ozbargain.com.au/user/510222/nodes

          That thread was removed due to 'Account Issue' AKA 'Ghost Account'.

      • Dollar General on 23/07/2024 - 21:15
        +1

        I like what the mods are doing

  • salmon123 on 24/07/2024 - 00:08
    +9

    2.5m+ in inventory … no idea what the rent on the yard is, but that's 15k/month in cost of capital … business is probably burning 30k/month in overheads.

    Just going to throw it out there, f*** carsales if you don't think it's worth it. I sell a car/bike every few months, but don't bother listing on carsales/bikes sales these days. Pricing is horrendous.

    Beef up your social media presence. Start a website+instagram that has all your inventory. Keep it up to date - religiously. You'd be surprised how many people appreciate having all the information they need at their fingertips and not having to call the salesperson.

    Start spending $$$ on advertising on fb/instagram/google. Sponsor a local sports team or two.

    • cloudy on 24/07/2024 - 06:56

      Honestly after doing all that you’re probably cheaper off listing them on carsales…

      • salmon123 on 24/07/2024 - 07:38
        +3

        Nah - "all that" means your building a resilient business, rather than being at the mercy of carsales. Over the medium term you'll reap the rewards.

        • cloudy on 24/07/2024 - 21:08
          +1

          It really depends, mid/lux cars in a regional area is a hard sell, sponsoring your local footy club is nice but if everyone there drives a crap box… I got a feeling you’re throwing money away. But hey, if you think it works that’s great.

          My guess is the buyers are wannabe middle class city slickers who has enough money to buy a nicer car and happy to drive an hour to get it for a k less

          • salmon123 on 24/07/2024 - 21:14

            @cloudy:

            mid/lux cars in a regional area

            OP said 50k - a RAV4 costs that much these days … I'd hardly call it a luxury car. No idea what the OP is actually selling.

            But hey, if you think it works that’s great

            I have no idea if it'll work. It's not my business … OP and their friend need to figure out what works. If it's not the local footy team, then maybe a lawn bowls team. Old people have money.

            My guess is the buyers are wannabe middle class city slickers who has enough money to buy a nicer car and happy to drive an hour to get it for a k less

            Probably not enough information in the post to figure out all these variables. In my mind, regional Australia is Wollongong or Newcastle … but yeah, if it's Dubbo then you're probably right.

  • Wiadro on 24/07/2024 - 06:23
    +2

    $50k+ cars in a regional area is the issue

    • Pasjes on 24/07/2024 - 08:43

      Not really. We're not talking 3 people and a few dogs. It is a large area with a very well established prestige market.

    • MS Paint on 24/07/2024 - 09:21

      Plenty of gold rush generational wealth in Ballarat.

  • loadofrubbish on 24/07/2024 - 07:49
    +1

    One of my friends is a backyard car dealer. He uses a friend's dealership license to minimize the transfer fees. His strategy is high-volume sales. He flips cars for $300 profits but does at least 4-5 cars per week. With new migrants looking for cars, he's been doing really well. But it's a tough gig, with him always on the phone, picking up cars within an hour of being advertised, then selling them on. He enjoys the whole process of haggling, etc. I don't recommend this but am just sharing what I know.

    • Pasjes on 24/07/2024 - 08:44

      Thanks. Yes some enjoy the grind. My mate works on lower volume, higher margin. Can get a bit hit and miss at times.

    • whyisave on 16/12/2024 - 22:01

      He flips cars for $300 profits

      Are those profits exempt from CGT , because they are cars ?

  • azero on 24/07/2024 - 10:15

    carsales has the highest quality leads - and they know - that's why they can charge that much for leads. I know of businesses that are struggling because they moved away from carsales (but they are not dealerships though)

  • bobbified on 24/07/2024 - 13:03

    he reckons probably works out at least $300+ per car as he's on a per lead plan.

    That's a few enquiries per car.
    What are the enquiries about? If the enquiries are generally asking for more information, then perhaps he's not putting enough information in the ads. Are the sale prices too high? It'll really help to understand why the leads aren't converting to sales.

    • JIMB0 on 24/07/2024 - 22:26
      +1

      It'd be mostly people checking to see if it's still available.

      • bobbified on 25/07/2024 - 18:11

        It needs an "IF YOU CAN SEE THIS AD, THE VEHICLE IS STILL AVAILABLE!" kind of headline.. lol

  • Poor Ass on 24/07/2024 - 13:38

    If you are talking about prestige high end Euro cars located in the sticks which target's a certain demographic

    I think you would be limited to sales compared to city area

  • Drakesy on 24/07/2024 - 16:29
    +1

    This is probably one of the worst times to be a used car salesman.

    2019-2022 was gangbusters, now the chickens have come home to roost. Second hand prices are in freefall.

  • Smol Cat on 24/07/2024 - 17:37

    Carsales was absolutely useless when I tried to sell my car. FB Marketplace is my go to place now, will use that for all future car selling/buying.

  • DiscoJango on 24/07/2024 - 18:45
    +2

    I too post questions on internet forums on behalf of my friends businesses, as they dont know how to use computers.

    • Pasjes on 25/07/2024 - 08:07

      Congratulations…

  • THICKnSLOW on 25/07/2024 - 08:43

    An eatery with good value for money food, that's what's missing these days.

  • rhinosdinos on 25/07/2024 - 10:22
    +1

    The dealer I went to buy my car recently solely sold their cars on Facebook marketplace and didn't advertise elsewhere. Their turnover with stock is pretty high as their cars were priced competitively - they were pretty much cheapest in the market even compared to private sellers.

  • Jase83 on 25/07/2024 - 17:09

    What is stopping one dealer purposely submitting multiple enquires with a competitor dealer just to run up their carsales expense?

    • borrisz0r on 25/07/2024 - 18:07
      +1

      Ethics or morals?

      Oh wait, they are car salesmen…

  • OzPeter on 25/07/2024 - 23:10

    Just recently talked to a car dealer, he told me to that most of his car sales are for cars under 30k, any car above 30k become hard to sell.

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