Carsales says Australians are spending longer researching vehicles, revisiting decisions more often, and increasingly using AI before making contact with dealers, as cost-of-living pressures dictates how buyers define value.
The findings come from Australia’s Car Buyer Report 2026, developed by carsales in collaboration with Nature, and point to a more complex purchase journey than previous years.
Buyers pause, loop and restart
The report found 63% of buyers backtracked at least once during the process, up 17 percentage points from 2023, while 34% said they paused or stopped altogether, up six points.
According to the report, these behaviours are strongest in the early research phase, where buyers face information overload, budget pressure and competing priorities.
Craig Fraser
Craig Fraser, Managing Director at carsales, said the visible buying window captures only a small part of what is actually happening.
“Australia’s Car Buyer Report 2026 makes it clear that the visible shopping window is only a fraction of the real journey. From the outside, buyers can look decisive. But when you look closer, you see they’re spending months trying to get things right – testing ideas, adjusting budgets and making sense of a lot of competing information.”
“The real moments that shape momentum aren’t always the obvious ones. They’re the pauses, the second guessing, the backtracking and the confidence dips that happen long before someone appears at a dealership. These moments are easy to miss, but they matter the most.”
Value overtakes aspiration
The report shows “good value for money” and “within budget” now rank as the strongest purchase drivers across all generations.
Younger buyers, women and non-experts were more likely to shift toward used vehicles when budgets tightened, even while interest in new cars remained high.
AI becomes another research layer
For the first time, AI entered the top 10 influences on vehicle research, ranking sixth overall.
The study found:
- 42% of AI users rely on it daily
- AI use is strongest among new migrants and highly detailed researchers
- Buyers use it to compare models, explain jargon and clarify finance
At the same time, traditional sources strengthened:
- Car comparison sites rose to 51% influence from 47%
- OEM sites rose to 30% from 26%
- Dealer sites rose to 26% from 24%
The report suggests AI is not replacing trusted platforms, but sitting alongside them as a support tool.
Hybrids continue to gain ground
Hybrid purchases among new car buyers rose 15 percentage points since 2023, the strongest gain across fuel categories, while EV purchases rose five points.
The report found 42% of buyers now intend to purchase a hybrid, compared with 24% intending to buy an EV.
Trust remains a key friction point
More than 62% of buyers said they struggle to know what information to trust early in the process, while 59% worry about making the wrong decision.
Fraser said that creates a wider challenge for brands, dealers and lenders.
“Australia’s Car Buyer Report 2026 gives the industry a robust, credible foundation for understanding how buyers really make decisions today. People are dealing with more information, more choice, more pressure on value and more tools than ever before. When brands, dealers and lenders design for the full journey – not just the moment of purchase – they reduce complexity, strengthen trust and support buyers the way they actually need to be supported.”
Top Image: carsales