Used car buyer perceptions - independent dealers lead the way

A survey of over 1500 used car buyers or those considering buying a used car reveals that independent dealers outperform dealer groups when it comes to their attitudes towards dealers.

This fascinating new insight is part of a broad assessment of used car buying attitudes revealed by new independent research commissioned by MotoNovo Finance. In terms of seller perceptions, the areas of advantage held by independent dealers were in; trust, transparency, friendliness, helpfulness, care and morals.

Reflecting on the findings, CEO Mark Standish notes;

“While hard factors on product knowledge/information saw the two dealer cohorts performing identically, at a deeper psychological and emotional level, there were clear gaps in critical areas such as trust and transparency. These were underpinned by the greatest perception gap, friendliness where independent dealers hold a marked advantage. On its own, low levels of trust would not necessarily stop a car purchase, but there are implications for pricing and reputation to be considered.”

A final part of the car buying perceptions assessment included Online Marketplaces; these underperformed dealer groups and independent dealers significantly. It is a fact that had Mark concluding;

“The findings point clearly to the valued role of a physical dealership for used car buyers. Used car buyers may discover their next car online, but to a large extent, this is only an entry point to the overall journey. The balance of credibility sits with the showroom right now.

“While for dealers, this news will be reassuring, there can be no place for complacency; consumer feedback suggests there is plenty of scope for improving the customers' perceptions. I’m sure that transparency developments in finance, required by the FCA, can play their part and we already see positive indications in this regard from our MotoRate pricing model."

Press release issued by MotoNovo Finance, October 2020