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It’s the second of five Friday’s in March and we’re talking about the results of a new Dealership Trust Survey. We also get into some specifics on Gen Z’s preferences in the F&I process, as well as peeking at the new Rivian R3 surprise release.
Show Notes with links:
- The KPA Dealership Trust Survey sheds light on a significant trust gap in the automotive retail sector, with a majority of consumers skeptical about dealership honesty in pricing and practices.
- The survey conducted by the Harris Poll, surveyed over 2000 adults in January 2024. Over 30% of respondents had a negative experience, while over 75% had a negative perception.
- On the experience side, 34% have felt pressured to purchase ‘add-ons’, 30% agreed on the price only to find hidden fees on final paperwork, 28% felt the salesperson was trying to trick them into a deal, 29% left and went to another dealership because they didn’t think they were being honest in their pricing
- On the perception side, 86% are concerned about hidden fees, 76% don’t trust car dealerships to be honest with pricing, 84% say price transparency is lacking at most car dealerships.
- 84% say reviews are important, with 93% of Gen Z using reviews.Negative consumer reviews significantly impact dealership reputation, with 12 positive reviews counteracting one negative one.
- Gen Z are ages 12-25 and now make up 18% of the US and according to a Cox study presented at the 2024 NADA show, have a unique appetite for F&I products. Yet, contrary to expectations, the key to unlocking this potential isn't purely digital.
- Despite being digital natives, Gen Z buyers prefer a blend of online research and in-person dealership experiences, underscoring the need for a holistic sales strategy from the start.
- According to the presentation by Cox’s Tracy Fred, "These are people who will spend time online doing the research" and then come into the dealership, Fred told Automotive News. So "rather than waiting until the very end of the sale [to pitch financing], move that up to the front so you are talking about the whole deal holistically from the beginning."
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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