Used Car Buyers Look To Go Private

AUTO CENTRAL – October 14, 2008: A sharp rise in the number of people who would prefer to buy their car privately rather than from a dealer is a potential problem for the industry. That is the view of Exchange & Mart after research suggested that more people than ever would prefer to buy their car from a private seller.

Figures reveal that the number of people looking to bypass the dealer has climbed a staggering 11 per cent in the past three years. It’s a trend that needs to be watched according to Exchange & Mart.

“When we last undertook the survey in 2005, the private market was the preferred channel, but it’s the size of the rise that is ringing alarm bells,” admitted Debra Healy, Digital Director at Exchange & Mart. “Consumers have long believed they may get a better price if they sell their car privately but the increase in those looking to buy in this marketplace indicates that more and more consumers have a perception that better deals are available privately.”

Car dealers are facing their toughest trading conditions for many years in the face of the economic slowdown, slumping consumer confidence and decreasing disposable income and Debra is urging dealers to play to their strengths.

“Price is always a major consideration in all buying and selling decision but it isn’t the only factor. Dealers have always offered long-term value for money, through a range of packages that cover the consumer in all eventualities. This unique strength is one the private market cannot match. The key to coming through tough times is having the confidence to stick to what dealers do best and not get sidetracked into an ultimately destructive price war to take on the private market. By continuing to exceed consumer expectations will help rebuild consumer confidence, which could be crucial in the current climate.”