Lemons Often Passed Off on Dealers
Study shows a significant portion of trade-ins have serious unrevealed issues.
The research found that 60% of survey respondents sold at least one vehicle during the last five years, three out of four making their most recent sale to a dealer.
Pexels/Pixabay
A study by a new vehicle-appraisal technology provider indicates a significant percentage of people who sell used cars knowingly do so without revealing serious mechanical issues that haven't been repaired.
The results of a September survey AppraisalPro commissioned of 500 Americans who bought or sold a car at a dealership in the past five years show one in five sell used vehicles with such defects, and 16% said they didn't disclose them to the buyer.
Sixty percent of survey respondents sold at least one vehicle during the five-year period, three out of four making their most recent sale to a dealer, the company said.
“Used auto buyers are concerned enough about transparency that they’re willing to pay for it,” AppraisalPro Dealership Manager Leslye Guthrie, who said dealers can tap diagnostic tools to ensure used cars they sell are free from serious mechanical issues.
The research showed vehicle buyers tend to trust dealerships over private sellers 68% to 5%, though more than a third of survey respondents said they’ve passed over a dealership car purchase due to feelings of mistrust, AppraisalPro said.
More Industry
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →