“Trust Factor” becoming more important to used car buyers
Rising cost of motoring means a convincing used car dealer proposition is essential.
The rising cost of motoring means that a high level of trust in used car retailers and the vehicles they sell will become an ever more important factor to customers during the next few years, says the RAC.
Increases in the price of fuel, insurance and used cars themselves, set against a backdrop of low economic growth, mean more buyers want to avoid unexpected motoring costs and will increasingly search for the most credible, lowest risk used car propositions.
RAC Head of Dealer Propositions Mario Dolcezza, said: “The typical used car customer of today is under increasing economic pressure. They need their car for work and for family and other social activities but the cost of buying and using it is rising at a rate that they can almost see happening on a weekly basis.
“This means their number one priority in choosing a used car is that is sound and reliable. The last thing they want is for that vehicle to bring them an unexpected bill because it is a cost that they often genuinely cannot afford. Their overall aim is to achieve something as close as possible to fixed cost motoring backed up by the reassurance of benefits such as a comprehensive warranty and a strong support network.
“This situation is unlikely to change in the next few years, given the general economic picture and it means that what you might call the ‘trust factor’ element of the used car proposition is becoming more and more important. The potential buyer must have a high degree of faith in the dealer and their overall proposition before they will sign on the dotted line.”
Mario explained this customer-centred thinking was the motivation behind both the new RAC BuySure used car initiative and the newly launched RAC Cars web site.
He said: “Our move into this space has been very much prompted by member concerns. For example, one of the most commonly asked questions on the RAC web site is for advice on buying a used car.
“With our new initiatives, we are creating credible responses to these needs. While we believe that customers understand that no used car purchase is completely failsafe, we are helping to build a used car proposition in which they can have a very high degree of trust.”
Mario added dealers were increasingly recognising the importance of this trust factor, especially those keen to take part in RAC BuySure.
He said: “The almost unrivalled strength of the RAC brand is based on consumer trust and potential used car buyers instinctively know that we won’t put our name to anything that isn’t extremely credible. The dealers becoming involved in RAC BuySure recognise this central fact and want to work to meet the very high standards that we are setting.”
Similar thinking was behind the launch of RAC Cars, Mario explained, with the creation of a new and trusted online car sales proposition.
He said: “Again, customers know that if we attach the RAC brand to an online used car proposition, we will have worked to ensure that it meets the very highest standards.
“As part of our protection of this brand equity, as we have already discussed in the media, we are moving to much more closely police the use of the RAC name by used car dealers. Wherever it appears in the future, we believe that buyers can have a strong degree of trust in both vehicles and dealer.”
Both RAC BuySure and RAC Cars are being promoted through the RAC web site, which has around one million unique visitors every month, to the organisation’s 2.1 million members and five million affinity members, and through its patrol magazines and other publications.
The RAC BuySure programme has been created to provide used car customers with a nationwide approved used car scheme that sets very high standards and is open to all kinds of dealers including independents, car supermarkets and franchises.
RAC BuySure dealers commit to an 82-point RAC Approved Preparation Standard on every vehicle, a minimum of three months’ RAC Warranty cover, three months of complimentary RAC Roadside breakdown cover and enrolment to RAC Accident Management Service, supporting the motorist in the event of an accident.
The RAC BuySure initiative has been created by the RAC working with its long-time partner in the warranty sector, The Warranty Group.