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Understanding first car buyers
March 12, 2025
Explore the latest insights to tailor your brands approach & convert them into loyal customers.
Buying a first car is a milestone moment—with buyers (or their parents) often filled with excitement, a healthy dose of apprehension, and a keen eye on the back pocket. As brands, understanding the behaviours, preferences, and concerns of this segment of buyers is key to engaging them effectively. A recent Consumer Sentiment Report from the carsales research team sheds light on the evolving mindset of first car buyers and how brands can better cater to this important segment.
The Growing First Car Market
According to the latest insights, 14% of prospective car buyers are looking to purchase their first vehicle¹. This presents a significant opportunity for brands to establish long-term customer relationships, given that a positive first car buying experience can lead to brand loyalty in the future.
One clear trend is that first car buyers overwhelmingly favour used vehicles, with 65% opting for a used car—higher than non-first car buyers at 59%¹. Affordability is a major factor, with 86% of first car buyers planning to spend under $30,000, compared to just 47% of non-first car buyers¹. These figures indicate that brands should highlight well-priced, quality used stock, such as certified pre-owned models and offer transparent history reports to build trust with this audience.
Where Are First Car Buyers Shopping?
One of the biggest challenges first car buyers face is deciding where to purchase. They are significantly more likely to be unsure of where to buy a car (24%) compared to non-first car buyers (6%)¹. Additionally, only 14% are committed to purchasing from a dealership, far lower than the 38% of non-first car buyers who would only buy from a dealer¹.
This presents an opportunity for brands to build trust and educate these buyers on the benefits of purchasing from a reputable dealership. Offering clear information on warranties, financing options, and after-sales service could help bridge the confidence gap and sway first-time buyers towards dealerships over private sellers.
What Are First Car Buyers Looking For?
The report highlights distinct differences in the types of vehicles first car buyers prefer. While SUVs dominate the broader market, this segment is more likely to be shopping for hatches (25%) and sedans (23%), compared to 12% and 17% of non-first car buyers, respectively¹. This reflects their budget-conscious approach and the preference for compact, city-friendly vehicles. Brands should ensure their market offerings aligns with these preferences, offering well-maintained, fuel-efficient options that appeal to younger buyers.
Price remains the dominant concern for first car buyers, with 87% ranking it as their top priority, significantly higher than the 71% of non-first car buyers¹. This again doubles doubles down on the importance of transparent pricing, competitive financing, and flexible payment options, all of which could be key to winning over these buyers.
Confidence and Concerns: How Dealers Can Help
While 62% of first car buyers feel confident navigating the purchase process on their own, more than a third still seek guidance. Branded dealers have an opportunity to step in as trusted advisors, offering informative and pressure-free experiences to assist in their decision-making.
First-car buyers also report greater concerns across the board compared to repeat buyers. They are more likely to be concerned about transparency on car history, odometer readings, and the vehicle’s overall condition. Being cognizant of these and facing them head-on with upfront documentation, certified pre-owned options, and clearly communicated warranties can be a catalyst to enhancing confidence in the buying process.
The Key Takeaways
First car buyers represent a valuable but often hesitant audience, with affordability, transparency, and trust playing crucial roles in their decision-making. Brands who tailor their approach by offering budget-friendly, well-documented vehicles, creating educational content, and providing a seamless buying experience will be well-positioned to convert these buyers into long-term customers.
SOURCE: ¹carsales Consumer Sentiment Survey Report – December 2024, Wave #19 n=2506.
What Are First Car Buyers Looking For?
The report highlights distinct differences in the types of vehicles first car buyers prefer. While SUVs dominate the broader market, this segment is more likely to be shopping for hatches (25%) and sedans (23%), compared to 12% and 17% of non-first car buyers, respectively¹. This reflects their budget-conscious approach and the preference for compact, city-friendly vehicles. Brands should ensure their market offerings aligns with these preferences, offering well-maintained, fuel-efficient options that appeal to younger buyers.
Price remains the dominant concern for first car buyers, with 87% ranking it as their top priority, significantly higher than the 71% of non-first car buyers¹. This again doubles doubles down on the importance of transparent pricing, competitive financing, and flexible payment options, all of which could be key to winning over these buyers.
Confidence and Concerns: How Dealers Can Help
While 62% of first car buyers feel confident navigating the purchase process on their own, more than a third still seek guidance. Branded dealers have an opportunity to step in as trusted advisors, offering informative and pressure-free experiences to assist in their decision-making.
First-car buyers also report greater concerns across the board compared to repeat buyers. They are more likely to be concerned about transparency on car history, odometer readings, and the vehicle’s overall condition. Being cognizant of these and facing them head-on with upfront documentation, certified pre-owned options, and clearly communicated warranties can be a catalyst to enhancing confidence in the buying process.
The Key Takeaways
First car buyers represent a valuable but often hesitant audience, with affordability, transparency, and trust playing crucial roles in their decision-making. Brands who tailor their approach by offering budget-friendly, well-documented vehicles, creating educational content, and providing a seamless buying experience will be well-positioned to convert these buyers into long-term customers.
SOURCE: ¹carsales Consumer Sentiment Survey Report – December 2024, Wave #19 n=2506.
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