Nearly half of drivers say they feel “pressured” by a salesman to buy add-ons when they bought a car.
That’s one of the conclusions of research from the Institute of the Motor Industry (IMI), which found that finance and insurance (F&I) products are added to 60% of all car purchases.
It found that 45% of drivers said they felt pressured by a salesman to buy add-ons when they most recently bought a car from a dealership or garage.
It said despite the Financial Conduct Authority (FCA) implementing changes to the Consumer Credit Act which aims to stop drivers being mis-sold finance and insurance products, 42% of car buyers said they had avoided a dealership due to the lack of trust.
According to the IMI research this mis-trust could be “avoided” with 64% saying buying a car would be easier if the people they were buying from were members of a regulated body.
And over half said they would feel more comfortable making financial decisions relating to a car purchase if additional measures were in place to ensure they weren’t overcharged
Steve Nash, Chief Executive at IMI, said:“Sadly our research highlighted that nearly two thirds (63%) of car buyers find the process stressful.
“This underlines why it’s the right time for the retail motor industry to take more responsibility to ensure anybody selling finance and insurance products has the correct training to be able to help drivers decide whether or not they would like to buy these extras when purchasing a vehicle.
IMI research highlights:
- 60% bought F&I products or services when buying a car
- 45% felt pressured to buy add ons/additional extras
- 33% felt they had been over-charged when purchasing a car and/or insurance
- 53% said they would feel more comfortable if measures were in place to not be over charged
- 75% felt they couldn’t trust a car salesman
- A car salesman is the 3rd most untrusted profession
- 37% were more likely to take out F&I products/services if the dealership was accredited by an industry body
- 64% felt buying a car was a stressful process
- 64% buying a car would be an easier process if drivers were buying from were a regulatory body
- 42% avoided a car dealership due to lack of trust