Nearly one in five American car owners admit the last car they sold had serious unresolved mechanical problems; however, one in six admit not disclosing that information to prospective buyers, according to AppraisalPRO’s new nationwide survey.
The survey also showed car buyers trust dealerships over private sellers by a 63-point margin (68% vs 5%). However, 37% of respondents have, at some point, decided against purchasing from a dealership due to concerns about the seller’s honesty.
Conducted in early September, the survey of 500 Americans who had bought or sold a vehicle through a dealership since 2019 highlights the high cost of hidden mechanical failures, rampant mistrust among buyers, and growing consumer demand for transparency in the used car marketplace.
“More than 15% of sellers admit hiding their car’s problems, leaving buyers with huge hidden costs and mistrust – which ultimately hurts both consumers and dealers,” said Cory Hewett, head of AppraisalPRO, a recently launched FIXD Automotive brand.
Key findings include:
Buyer concerns: Nearly one in three (32%) respondents who had purchased a car since 2019 acknowledged they were concerned the seller was “hiding important mechanical problems.”
Concealing problems: 18% said the last car they sold had “significant unresolved mechanical problems”; and among these sellers, 16% admitted they did not disclose those problems to prospective buyers. 70% said they disclosed all their last car’s problems to buyers.
Diagnostics Demanded: 65% of consumers are willing to pay more for a vehicle with an OBD2 diagnostic report; 84% said car sellers should be required to provide diagnostic reports to prospective buyers; and 94% said knowing a car passed a diagnostic test would influence their purchasing decision.
“This survey sends a clear signal to American dealers,” said AppraisalPRO Dealership Manager Leslye Guthrie. “Used auto buyers are concerned enough about transparency that they’re willing to pay for it. If dealers want to protect themselves against buying trade-ins with massive hidden mechanical problems and also demonstrate the health of the cars on their lots to consumers, they need to leverage OBD2 diagnostic technology.”