Why Car Dealerships Struggle with Customer Trust
Car dealerships have been facing a crisis of customer confidence due to shady practices and lack of transparency. Despite efforts to avoid deceptive tactics, a recent survey reveals that the majority of customers still do not trust dealers.
The Survey Results
The survey conducted by KPA, a company specializing in compliance with regulations, involved 2,098 participants aged 18 and over. The results were quite alarming:
- 86% of respondents worry about hidden fees when buying or leasing a vehicle
- 76% lack trust in dealerships regarding transparent pricing
- 84% believe that most dealerships lack price transparency
Perceptions vs. Reality
Despite these negative perceptions, many respondents reported that their actual dealership experiences were not as negative as expected. However, the survey also highlighted some concerning issues:
- 34% felt pressured to purchase add-ons
- 30% discovered hidden fees after agreeing on a price
- 28% felt the salesperson was trying to deceive them
- 29% left a dealership due to doubts about pricing honesty
Improving Customer Trust
In an interview with AutoNews, KPA CEO Chris Fanning emphasized the need for dealerships to improve transparency and communication to rebuild trust. He also mentioned the importance of complying with upcoming FTC rules regarding junk fees.
Fanning stated, “Dealers need to communicate a stronger culture of transparency and ensure compliance with the law at every step. By working towards this goal, they can enhance the car-buying experience and increase trust levels among customers.”