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September 14, 2016updated 12 Apr 2017 11:26am

Auto Trader: 93% of UK consumers distrust used car dealers

Only 7% of UK consumers trust used car dealers, according to a survey by online vehicle retailer Auto Trader.

By Saad Ahmed

Only 7% of UK consumers trust used car dealers, according to a survey by online vehicle retailer Auto Trader.

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The online retailer’s ‘September Market Report’ compared thirteen major industries, including estate agents, and found that the market for used cars was the least trusted among 5,000 individuals surveyed.

However, of those who bought a used car in the past 6 months, 68% claimed they had a significant level of trust from their dealer.

Operations director of Auto Trader, Nathan Coe, said: “The industry still suffers with a lack of trustworthiness which resonates strongly with consumers. Changing these perceptions will be a challenge.”

The research by Auto Trader indicated that a lack of transparency and adequate information was to blame for continuing mistrust by entrenching existing negative view of the industry.

Due to a perceived lack of transparency in the used car industry, 38% claimed they were driven to search for another dealership, with a further 36% deciding to put off buying a car.

The report found that the lack of quality information deterred potential consumers, with 20% saying they had encountered information that was hard to find, vague, or misleading.

Of this group, 42% found the process more stressful as a result, and 41% found that it took longer than preferred to buy a car.

According to Auto Trader, the findings suggest that improving the availability of in-depth information such as dealer reviews, price comparisons, and vehicle and history checks may help raise perceptions.

Coe continued: “Changing perceptions of the used car industry is a huge challenge, but it is not insurmountable.

“It will require the majority of the industry to embrace a greater level of transparency to increase trustworthiness with consumers. Those that do will certainly gain the competitive advantage.”

Free Report
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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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