The recent KPA 2024 Dealership Trust Survey sheds light on the widespread belief among Americans that car dealerships engage in deceptive practices regarding pricing and financing.
Despite only a third of respondents reporting actual experiences of deceptive selling tactics, a staggering 76 percent express distrust towards dealerships’ honesty in pricing.
According to the survey, notable experiences among consumers include feeling pressured to purchase add-ons (34 percent), discovering hidden fees after agreeing on a price (30 percent), sensing salespersons’ attempts to deceive them into deals (28 percent), and leaving a dealership due to perceived dishonesty (28 percent).
The survey underscores buyers’ prevalent concerns regarding hidden fees (86 percent) and inadequate price transparency (84 percent) during vehicle transactions.
This skepticism towards dealerships’ pricing practices suggests a significant discrepancy between perception and reality, with a substantial portion of consumers harboring distrust despite limited personal encounters with deceptive practices.
The pronounced distrust towards dealerships’ pricing integrity is likely rooted in the industry’s historical reputation for unethical behavior. Surprisingly, the survey also indicates that a minority of respondents (24 percent) believe dealerships are transparent in their pricing, further highlighting the prevailing skepticism.
These survey findings coincide with recent regulatory efforts by the Federal Trade Commission (FTC) to combat fraudulent practices in auto retail.
The introduction of the Combating Auto Retail Scams (CARS) Rule aims to safeguard consumers from deceptive dealership practices, including pricing transparency, financing arrangements, and protection of customer information.
Non-compliant dealerships risk substantial fines exceeding $50,000 per violation under the new regulations.
The survey, conducted by The Harris Poll on behalf of KPA, involved 2,098 adults aged 18 and above in the United States. The data, collected online between January 16 and 18, 2024, boasts a sampling precision accurate to within +/- 2.5 percentage points with a 95% confidence level.
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