Canadians lack info about trade-in

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Most Canadians feel they are in the dark about the value of their trade-in vehicles, found Canadian Black Book in its recent poll.

The vehicle value provider found 82 per cent of the more than 1,000 Canadians surveyed said trade-in information was not readily available and was proprietary to dealers.

Canadians were asked to answer questions about their intent to purchase, sell or trade-in their vehicles over the next 18 months, their knowledge of vehicle values and their thoughts on top automotive expenses.

Some of the key findings of the poll include:

  • Half (50 per cent) of Canadians are “likely” to buy a new or used vehicle in the next 18 months, with anticipation to buy even higher among young drivers;
  • Only half of Canadians who had traded in their vehicles had a good idea of what the value would be, while over one third received less money than expected;
  • Ninety per cent of Canadians — and zero per cent of millennials — failed to identify depreciation as the biggest vehicle ownership expense; and
  • Sixty per cent use online value calculators when researching trade-in values.

In an interview with Canadian auto dealer, Brad Rome, President of Canadian Black Book, said the idea behind the poll was to help consumers make informed purchase decisions and determine some of the biggest pain points in the sales process.

“Dealers want to make sure they make the buying process as easy and as pain-free as possible. There’s a lot of information there that dealers can pay attention to to help consumers feel that much more comfortable when they are at the dealership level making that decision,” said Rome.

“If they come in there educated, it helps the dealer too and it helps the process from a sales perspective.”

You can learn more about the poll in this video.

Canadian auto dealer will be providing in-depth coverage, including photos, charts and interviews, in the June/July issue.

The poll was conducted by Ipsos Reid in January 2016.

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