ausauto News Article

Used car salesmen in from the cold

Think of a dodgy deal and one of the first names to come to mind is the used car dealer. But a recent survey has revealed a majority of used car buyers think that they are more likely to be ripped off by an individual seller than by a certified dealer.

The Vedaauto.com survey revealed that three in five or 57% of used car buyers prefer purchasing a used vehicle from a motor dealer.

Sixteen percent of survey respondents said they would purchase a used vehicle online if they were able to obtain a full history report prior to purchase.

The value of purchasing through a reputable dealer and undertaking a thorough vehicle history check was further underlined with 6% of those surveyed saying they would consider winding back their car odometer if they could make more cash.

And in a boost to the 'rebirthing industry', 5% conceded that they would buy a stolen vehicle if it was in good condition and represented good value for money.

Around 6% claimed to have experienced fraud or deceit when buying a used car or when a family member purchased a used vehicle in the past 12 months.

The average cost of such an experience was $3128 and with around two million used cars sold annually this equates to an average vehicle fraud costs of $375 million each year.

According to David Scognamiglio of vedaauto.com buying a used vehicle without researching its history is a huge gamble.

"Australia is a country where crooks can move cars across borders to hide the history.

"Some good information is available online that will help prevent a number of surprises, however our analysis shows that around 70% of people do not know about it."

Which is something of a mountain to climb for David whose company provides an online checking system.
A Veda Auto Report costing $24.95 includes a REVS check, written-off and stolen vehicle status, flood or storm damage, odometer readings, previous sales listings, testimated current valuation and safety and emission ratings.

Additional Report Findings:

• Of the 53% respondents who intend to purchase a used vehicle in the next twelve months, 33% have already decided to pay for the vehicle outright and 18% will apply for personal finance. 
• Consumers are most concerned with the legitimacy of the following details when purchasing a used car: accidents/insurance claims (66%), value of the vehicle relative to other similar vehicles (49%), vehicle odometer reading (48%) and service history of the vehicle (44%) 
• One in five (22%) consumers surveyed will own their vehicles until it breaks down and starts costing them money.
• With regard to future running costs, 76% of consumers are most concerned about fuel costs, followed by repairs and non-service maintenance (69%) and mechanical servicing (62%).