Car dealerships have a major problem when it comes to customer confidence. For some time, the profits have been so good and the regulation so loose that shady practices have continued. Now, a new survey says the vast majority of customers still don’t trust dealers even though most ultimately avoid many shady tactics.
The study comes from KPA, a company that helps businesses comply with new rules, regulations, and laws. It surveyed 2,098 people aged 18 and over concerning their dealership experience between January 16th and 18th this year. The details about how they perceive dealers are quite damning.
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First of all, a staggering 76 percent of respondents lack trust in dealerships regarding transparent pricing. Additionally, 84 percent believe that most dealerships lack price transparency, and 86 percent express concerns about hidden fees. Surprisingly, despite these perceptions, many respondents noted that their actual dealership experiences were not as negative as expected.
- About their perceptions of dealerships:
- 86% worry about hidden fees when buying/leasing a vehicle.
- 76% distrust car dealerships to be honest about pricing.
- 84% feel price transparency is lacking at most car dealerships.
According to the survey, 34 percent said that they felt pressured to purchase add-ons, 30 percent found hidden fees after agreeing on a price, 28 percent felt like the salesperson was trying to trick them, and 29 percent left a dealer because they sensed dishonest pricing. Sure, those figures aren’t great, but they certainly show how people view dealerships. In addition, it doesn’t mean that the remaining percentage of buyers had a positive experience.
In an interview with AutoNews, KPA CEO Chris Fanning laid out what dealers need to do to fix their perception and abide by upcoming FTC rules about junk fees. “I think that the dealers have some work that could be done to communicate a stronger culture, more transparent practices,” he said.
- About their dealership experience:
- 34% felt pressured to purchase ‘add-ons.’
- 30% agreed on the price but discovered hidden fees when signing the paperwork.
- 28% felt the salesperson was trying to “trick” them into a deal.
- 29% left one dealership for another due to doubts about pricing honesty.
“Making compliance with the law and communicating that they’re following each and every step very carefully and diligently and just making sure every customer knows that that’s happening every day, with every employee — it’s a lot to ask. But the more that they work toward that goal, the better the experience will be for people buying cars and the higher the trust level will be with people coming in,” Fanning added.