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Used car dealers suffer consumer trust issues, report states
Two recent surveys have produced significantly different results about how much consumers trust car retailers. The Auto Trader Market Report for September looked at 13 UK industries and asked consumers to rate their levels of trust for each. The report highlighted less than 1 in 10 consumers trust used car dealerships. However, an alternative survey of 5,000 customers who had purchased a car within the last 6 months found that over two thirds had a significant level of trust in their car dealership. The difference in the surveys is the Auto Trader Market Report included a broad range of customers, not just those with recent experience of completing a car purchase. These findings demonstrate a perception problem within the used car market, which is not an accurate portrayal of how customers feel when they have purchased a car.
The market report claims the most significant factor for establishing trust with the car buying process is transparent pricing – with 76% putting it at the top of their list. 19% said information was vague, hard to find or misleading during the research process, also affecting trust in the industry.
The full Auto Trader Market Report can be downloaded here.
How do consumers rank used car dealers on trust?
Further key findings from the Auto Trader Market Report for September:
- Used car dealerships ranked the lowest for trust out of 13 UK industries, falling below estate agents, banks and insurance companies
- 74% of consumers conduct their car buying research online, spending an average 11 hours on the task, but only 22% see dealership websites as being truly trustworthy
- 23% said they find visiting a car dealership daunting
- Of the 1 in 5 who said information is vague, hard to find or misleading:
- 42% said it made the car buying process more stressful
- 41% said it delayed the purchase of the car they wanted
- 22% said it nearly resulted in them visiting another dealership
- 16% said they purchased their car from another dealership.
Paul Newton, Chief Executive Officer of Car Care Plan, said one way to help build trust is to sign up to the Motor Codes Code of Practice. He explained: “Subscribing to a Code of Practice helps customers identify responsible business operators, it helps them build trust and, ultimately, raises satisfaction levels and retention. I’m absolutely convinced voluntary commitments raise standards of service and provide buyers with extra layers of protection without them having to resort to regulatory bodies.” Read more here.
How to build consumer trust in your dealership
Our top tips:
- Transparency – as highlighted in the Auto Trader Market Report, transparent pricing is the single most important factor for building trust, which in turn leads to sales and ever important word of mouth marketing. This also applies to aftercare products, which you should discuss with the consumer and explain the costs as well as potential savings. Learn more about consumer rights in our free eBook: Car retailers and the Consumer Rights Act.
- Aftercare – offering consumers an extended warranty, GAP insurance, MOT test cover, tyre, alloy and cosmetic insurance are all good ways to help build trust. It demonstrates your dealership’s willingness to look out for their best interests. Be sure to discuss both the benefits and drawbacks of each product to identify which one or combination will work best for them. Download our free guide to motoring financial aftercare for more information.
- Documentation – there is a lot of necessary documentation with the sale of a new vehicle. But explaining the importance of these documents and presenting them in an easy to understand form will go a long way to building trust. No consumer wants baffling with small print and graphs when buying an extended warranty. To learn more about putting customers at the heart of your business, download our free eBook.
- Online – many car buyers spend hours researching online before purchasing a new vehicle. This is likely the first impression they will have of your dealership, so it’s important your website looks professional, is easy to navigate, and has all the information they require, including details on aftercare products. To learn more about digital technology for dealerships, download our free eBook.