Carsales.com's Economic Moat Underpins Coronavirus Resilience

Carsales is Australia's largest aggregator of online automotive classified advertising. We rate Carsales as having a narrow moat through the network effect because its website attracts the largest audience of buyers and sellers of motor vehicles. Buyers are attracted to carsales.com because of the need to access the largest inventory, while sellers are attracted to the largest audience. This virtuous cycle increases inventory and customers, making competitor sites increasingly irrelevant.