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Trust the Lynchpin of Sales

Study shows it’s building with consumers, but dealers can improve on transparency, both online and in person.

November 6, 2024
Trust the Lynchpin of Sales

A divide persists between consumers’ and dealers’ perceptions of transparency in the car-buying process. 

Credit:

Pexels/Pixabay

2 min to read


It might seem obvious, but consumers’ trust in auto dealers is a crucial element in sales, but new research shows just how crucial and points out areas where dealers have room to grow.

The Capital One research found that despite today’s high vehicle prices, 48% of auto consumers would be willing to do business with a dealership they trust, even if its prices were higher than competitors'. In fact 26% named trusting a dealer the most important aspect of car buying – just 10% consider paying the lowest price the most important.

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Transparent Solution

Transparency figures largely in the trust factor, the research also found. Consumers who find the purchase process transparent are about three times as likely to trust the dealer, the study showed, and those who trust the dealer are more than seven times as likely to consider the process transparent.

The research also found that dealer salespeople play a key role in establishing that crucial level of trust. Sixty percent of survey respondents said salespeople factor in their trust level.

A wrinkle appears in the divide between consumers’ and dealers’ perceptions of transparency in the process. Though more consumers are finding transparency in car buying – 55% versus 28% last year – 73% of dealers believe their processes are transparent.

Not One or the Other

Capital One said bridging online and in-person shopping is now essential in winning business. Though the percentage of buyers who do at least half of the process in person increased by five percentage points year-over-year to 88%, that still means a big portion of the process happens online.

“The car buying experience calls for a unique standard of transparency and trust,” said President of Financial Services Sanjiv Yajnik in a press release. 

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“The combination of powerful online tools and meaningful face-to-face interaction to build relationships is what drives this industry. Dealers that make the most of both avenues can give buyers the transparency they want, and when buyers feel the car buying process is transparent, they’re far more likely to trust dealers.” 

LEARN MORE: How to Sell in a Digitally Altered Reality

Originally posted on Auto Dealer Today

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