Used cars and New Car sales dealerships across Australia have a limited range of options available when it comes to advertising online which may ultimately (if not already) raise the price of cars for sale to consumers.
The cause for this phenomenon is due to the monopolization of the online market by Carsales Limited, of whom enjoys more than 90% of the market reach online. There was a recent acknowledgement of this issue by Australia's consumer competition watchdog, the ACCC (Australian Competition & Consumer Commission) in their denial of the merger between Trading Post and Carsales Limited. In the ruling the ACCC highlighted that such a merger would further deteriorate the competition (or lack thereof) in the online car marketplace in Australia since Trading Post holds a large piece of the minor part of the market not already dominated by Carsales Limited.
This lack of competition forces car dealerships to advertise online via the ever popular Carsales.com .au website, where they a charged on a "pay per lead" model. TO further add salt to the wounds of car yards, Carsales Limited raised their pricing significantly at the end of 2012, where this added cost inevitably is passed onto consumers.
There surely are other choices available for used cars and new car sales dealerships, however those other choices simply aren't nearly as effective. Other websites like CarsGuide, Drive, Autotrader and many others struggle to gain traction in the marketplace even though they are backed by the media giants of Australia including Fairfax Media and News Limited.
Car | Cars | Car Rental | Car Insurance | Used Cars | Cars For Sale | Rental Cars | Car Parts | Car Dealer | Car Loan | Cheap Car | Car Show | Car Audio | Car Hire
Cars For Sale
Reviewed by Jenna
Published :
Rating : 4.5
Published :
Rating : 4.5
