Lack of consumer trust could be undermining used vehicle transaction prices

September 14, 2016

Only 7% of UK consumers claim to trust used car dealerships, which could increase their determination to secure discounts as they fear being overcharged. New research has shown that used car buyer concerns are based around a lack of clarity about the final cost of purchasing a used car. The Auto Trader market report revealed that most used car buyers prefer not to haggle when purchasing, but this requires confidence that the price being charged is fair and there are no hidden extras, such as charges that are introduced at the very end of the purchasing process. In the survey, 76% of car buyers claim that transparency on price is the most important factor in the car buying process, while one-in-five say they have found vague, hard to find or misleading information recently in the car buying process. As a result, car buying is more stressful and time-consuming than consumers would like. A lack of trust also increases the likelihood of losing sales to another dealership or even persuading the customer to abandon purchasing a car altogether. Dealer groups are responding to consumer concerns by focusing on providing clear pricing and avoiding unexpected surprises. Andy Bruce, chief executive officer of dealer group Lookers, said: “Consumers want to be in control of the buying process. We believe our role is to provide as much information and advice as we can to allow them to make an informed choice, so it's about helping people to buy, as opposed to selling to them. Transparency and honesty are key to this aim.”

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March 31, 2017

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