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Survey: nearly 2/3 of American consumers think auto dealerships are unethical
Another day, another survey suggesting that Americans would prefer to buy cars online.
This time, the data comes from an Autolist poll. While most respondents say that they're okay with the current car sales model, a significant number dislike the muss and fuss of salespeople and haggling.
To gather its results, pollsters surveyed nearly 6,300 Americans from all 50 states between September 2016 and February 2017. Here are a few of the key findings:
So-so satisfaction with the current model: Of those surveyed, 59 percent said that they were "pretty satisfied" with today's car-buying process. Another 22 percent said that they were "very satisfied". However, 20 percent said that they were either "pretty unsatisfied" (16 percent) or "very unsatisfied" (4 percent). (And yes, those numbers add up to 101 percent due to rounding.)
A distaste for haggling: When asked about ways to improve the sales process, nearly one-third--32 percent, to be precise--said that they'd like to see haggling go the way of the dodo. Another 21 percent said that they'd like to eliminate trips to dealerships. Only five percent said that the process is perfect just the way it is.
Test-drives are still popular (despite what some might think): When asked what they liked best about going to dealerships, 43 percent said "test driving a vehicle". Only ten percent said "negotiating a price", and just seven percent said "speaking to a salesperson".
Did we mention that people hate haggling? When asked what they hated the most about going to dealerships, 48 percent--nearly half--said "negotiating a price". Another 42 percent said "speaking to a salesperson". All the other things people hate about dealerships paled in comparison to those two responses.
Everyone's afraid of getting scammed: Of those surveyed, 42 percent said their biggest fear about going to dealerships was "getting ripped off". "Buying a lemon" (27 percent) and "dealing with salespeople" (24 percent) came in a distant second and third, respectively.
General Motors brands do a great job pleasing customers: Respondents said they were most satisfied by GMC dealerships. Cadillac and Mercedes-Benz tied for second place, and Subaru and Chevrolet tied for third.
Acura is less than beloved: In fact, Acura dealerships had the lowest satisfaction score of any in the survey. Hyundai, Jeep, BMW, and Kia were also poor performers.
Have some thoughts of your own about today's car-buying process? Share your thoughts in the comments below.
This may come as a shock, but many people think that car salespeople are dishonest. A recent Gallup poll ranked nurses, pharmacists, and doctors among the most-trusted professions, but car salespeople landed at the bottom of the list, tied with telemarketers and members of Congress. Only lobbyists fared worse.
Just to prove a point, Total Dealership Compliance conducted its own survey, and you probably won't be surprised to hear its findings. After polling U.S. adults, TDC discovered that most Americans have a negative view of dealerships, believing that they employ shady business practices. Among the survey's key stats:
Roughly 65 percent of those surveyed described auto dealerships' business practices as unethical.
More than 50 percent of respondents said that they'd be more likely to shop at a dealership if it displayed its code of ethics prominently.
However, another 40 percent of consumers said that displaying a code of ethics wouldn't have any effect on their decision to do business with a dealership.
True, some respondents probably didn't care about codes of ethics at all, whether the survey had discussed auto dealerships, department stores, or doughnut shops. However, the results suggest that (a) many Americans assume that a dealership is going to be unethical, and (b) they believe they have no choice but to live with it.
Our take
With 200 respondents--all of which were questioned online--TDC's survey is at the lower end of what we'd call statistically significant.
Also, TDC has a very clear interest in proving that consumers hold negative views of dealerships. After all, it's in the business of providing services to dealers--services like internal audits and employee background checks that ensure dealers are operating within the bounds of the law.
That's not to say that the survey's results are bogus, though. In fact, given some of your comments in recent years--particularly as the National Automobile Dealers Association launched a charm offensive to improve consumers' opinions about dealerships and commission-based business models--we'd say that the survey reveals a slightly rosier opinion of dealerships than we'd expected.
What we really want to know is: how do you feel about dealerships? Do you think they're ethical, on the whole? Unethical? Or are their business practices just as shady as every business on the planet? Sound off in the comments below.
