Revealed: Why Carsales inquiries are quietly costing Australians thousands

Used car prices are skyrocketing costing Aussies plenty and the blame is being laid at a little hidden fee as a result of a market ‘monopoly’.

Australians shopping for their next car online may not realise that every time they hit the “inquire now” button on Carsales, it costs the dealer about $80 and according to industry insiders those fees are passed back to the consumer.

A lively discussion online has confirmed what many in the trade have long complained about: Carsales charges dealers not per ad but per lead.

Dealers online said the current cost per inquiry is typically $75-$80 for franchise dealers, with some reporting an average closer to $65-$70.

“It’s recently gone to $80,” one user wrote.

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Carsales ad reveals inquiries will cost dealer $80 per lead. Picture: Reddit

One insider, DeCoburgeois, who works for a large OEM, said “Carsales charge $75 per lead.”

That’s more than double a decade ago, when prices ranged between $30-$50 per lead.

When asked about pricing, a Carsales spokesperson said the model is designed to provide measurable value to dealers:

“Carsales is committed to delivering high-quality leads and measurable value to our dealer partners. Our pricing model reflects a range of factors and is designed to support dealers in achieving strong commercial outcomes,” a spokesperson said.

“We regularly review our pricing to ensure it remains competitive and aligned with the value we deliver. We continually invest in product, technology and lead quality to help dealers sell more effectively and succeed in an increasingly competitive market.”

The way Carsales works is straightforward: dealers can list cars for free, but the site clips the ticket every time a buyer sends an inquiry.

One dealer online wrote, “Even someone pointing out a spelling mistake is $80 out of my pocket.”

After five leads or 28 days, whichever comes first, the dealer is billed.

The company said tying charges to genuine leads keeps the platform accountable.

“Our lead-based model is one way we ensure we remain accountable for the value we deliver to dealers. By tying pricing to actual leads generated, we align our success with theirs when they receive tangible opportunities to connect with in-market buyers. This approach reinforces transparency and performance, and reflects our commitment to helping dealers achieve strong commercial outcomes.”

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The average cost of a new car is approximately $50,000. Picture: Supplied

A Carsale spokesperon said new features designed to improve lead quality will help reduce wasted costs.

“Over the past year, we’ve introduced a range of dealer-focused innovations and AI-powered features as part of a broader, ongoing program of updates. These include spam mitigation technology, updated communication tools, streamlined workflows and smarter inventory solutions.”

Carsales is by far the largest car marketplace in Australia. Alternatives like Autotrader or Gumtree exist, but don’t match its reach.

The platform which hosts more than 1 million used cars nationwide, goes to great lengths to stop buyers from bypassing the system.

Registration plates are blurred, signage in photos is removed, and text filters block anything resembling a phone number.

Commenters accused the platform of “milking dealers” by making it nearly impossible for customers to make direct contact without triggering a paid lead.

While dealers receive invoices for the cost of the inquiry, those fees are then added to the final price of a car.

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The used car market is set tipped to reach $100 billion by 2034. Pic Megan Cullen.

One commenter said, “I know guys in the industry with Carsales bills that run $70k+ every month. This is the main reason most large franchise dealers need such big margins on used cars. They almost certainly have to pay in the region of $1000 in marketing to sell every car.”

For Aussie families already stretched by interest rates, insurance hikes, and soaring cost-of-living, buying or upgrading a car is now more expensive than ever.

“Monopoly on the market means you can charge fees like this. In turn, the consumer ends up paying as the dealer retains a higher margin to cover the overheads,” umm_1_2 said.