68,000 complaints may just be the tip of the iceberg

Posted on June 19th, 2009 by In51der in Blog, Car Dealers, Car Repairs, Consumer


The recent announcement by the Office of Fair Trading (OFT) that they received a whopping 68,000 complaints about used cars in the UK last year was disappointing to say the least. In the wake of the OFT launching a market study into the sale of second hand cars in this country we decided to delve a little deeper into the figures and try to draw some informed conclusions about what might be happing, not to pre-judge the results of the study but rather to get our head around what might actually be happening. The way the complaints break down certainly makes worrying reading not just for buyers but for car dealers across the board.

As we know the OFT received a total of 68,625 complaints in 2008, specifically on used cars, and of those grievances 15,230 related to franchised dealers i.e. those which represent a manufacturer, 47,019 from Independent dealers including supermarkets, 4,379 from private purchases and 1,997 from elsewhere, presumably from auctions, importers and the like.

Although the volume of complaints themselves is of great concern, perhaps more worrying is that these complaints represent people who bothered to take matters this far. This could very well be the tip of the iceberg in terms of the number of dissatisfied customers. Let’s face it, a far greater number of complaints would probably have been dealt with “in-house” before reaching the OFT and an equally large number of unhappy customers would probably have lost the will to live and given up.

Speaking with some experienced dealers about these figures the general consensus was they’d be amazed if very many of these complaints related to franchised dealers because, in their view, the complaints simply wouldn’t have been allowed to reach that stage. Well it’s time to guess again and change “wouldn’t” to “shouldn’t” with a staggering 15,230 complaints doing just that.

For the franchise dealers this figure of more than 15,000 people deciding to take their complaint as far as the OFT means that even with supposed robust and vastly expensive manufacturer backed customer care programmes, these people could not resolve their grievance with the dealer and their supposedly slick customer service machine. This level of failure really is staggering given the focus that car makers place in this area.

There were 7,157,982 used cars sold in the UK last year (figures: SMMT) which means that close on 1% did not only receive an unsatisfactory experience but were so aggrieved they reported their problems to the OFT. Wherever the process broke down, either before, during or after a purchase, we can only speculate on the true nature of the complaints but in the experience of many dealers they usually involve one or more of the following;

Over promising and under delivering
Poorly (or fraudulently) described cars
Poor preparation of cars
Giving misleading information as to a cars history
Cars simply not retailed as advertised
Defective parts
Misleading or ineffectual overpriced warranties
Badly conducted repairs
Overcharged for servicing
Charged for work not done
Mis-sold finance agreements

These are just a few examples.

There could very well be some customers who may now be so fed up with the experience that they do not even bother complaining to the dealer who supplied them but go straight to the OFT for help, which again is a damning indictment of the breakdown in trust between buyer and seller. Of course, it has to be said that we have become such a litigious society, some consumers are, perhaps prepared to complain right to the top as it where, for the most trivial of problems – which may have been easy to resolve – in an attempt to claim some kind of compensation.

We should also point out that the OFT give no information on the validity of the complaints so we have no way of knowing how many of the complaints they received where spurious at best.

We would guess that on both sides there is probably fault and mistrust, and without having the information to compare dissatisfaction with other types of retailing experiences we cannot point the finger entirely. However if over 68,000 buyers of used cars have felt it necessary to complain to the OFT then the industry still clearly has a major problem.

Although we at MTI are convinced that the majority of dealer groups and smaller independent traders are committed to providing a great service and are endeavouring to improve the image of used car sales in this country, it is clear that there is still a long way to go.

The fact that many disappointed drivers have had their buying enjoyment ruined by being undervalued means that there are still too many sellers of used cars who are in it for a short term quick buck instead of building long term, sensible relationships with clients.

Bookmark and Share


Buying A New Car? The Motor Trade Insider Guide To Buying New Cars >>>Click Here<<<



Blogging and Social Media Services for the Automotive Industry


  • Some car sales people still ignoring customers once the deal’s been done
    In our quest for a perfect world, we at MTI try and see the positives in everything. The reason we [...]...
  • Complaints about used car dealers up 8 percent in 2009
    Government-funded advice service Consumer Direct has revealed that complaints about second-hand cars bought from independent dealers has topped the list [...]...
  • Used cars top Consumer Direct complaints list
    Cars, mobile phones and televisions remain high on the list of complaints from consumers in the UK in 2009. Secondhand cars [...]...
  • As motor trade complaints rise make sure you protect yourself
    The list of complaints about car sales and repairs is unfortunately still growing, despite the transparency the industry attempts [...]...
  • Used car market is still top for customer complaints
    For the third year running, second-hand cars top a list of complaints received by Consumer Direct about defective goods. The consumer [...]...
  • Used car dealers top complaints list
    Consumer complaints about used car dealers tops the list. Consumer Direct answered more than 1.5 million calls and emails from consumers in 2007 and logged 819,815 complaints on its database, up 18 per cent from the previous year. In total, Consumer Direct received 41,880 complaints about second hand cars bought from independent traders, up 18 per cent on the previous year. Complaints about mobile phone service agreements came second, up 49 per cent and complaints about TVs came third, up 14 per cent. David Sayer, Head of Governance for Consumer Direct North East said: 'The rise in complaints in 2007 reflects, in part, a growing awareness of the service among the general public as well as an increasing willingness among consumers to complain when they buy unsatisfactory goods or receive poor service. Consumers are finding that by arming themselves with information about their rights, they stand a better chance of resolving problems with shops and traders.' ...
  • Leave a Reply

    Motor Industry News

    About MTI

    Motor Trade Insider
    Our aims:
    Build a bridge between consumers and the trade.

    Create Interesting and informative content.

    Break down barriers and create better understanding.

    Expose bad practices and rip-offs.

    Promote outstanding products and services.

    Motor Trade Insider is written by people working actively in the motor trade for people on the inside and people on the outside.

    Motor Trade Insider – Your Friend in the Trade. New Car Buying, Used Car Buying, Used Car Prices, Used Car Values UK. Car buying guide whether you’re buying a new car or interested in used cars or just general info and advice on the motor trade.

    Valid CSS!

    Valid XHTML 1.0 Transitional

    [Valid RSS]

    Bargain of the Week

    Bargain of the Week – Buying a Supercar – part one

    Bargain of the Week – Buying a Supercar – part one

    Nine are still in yet calling the shots on who has it when is still to be decided, and there's still one (me) who has ...

    Bargain of the Week – Mini Cooper

    Insurance wise, better to choose the Mini One, but stretch your budget ever so slightly and pick the 1.6 Cooper. Not because of the famous ...

    Bargain of the Week – Porsche Cayenne S

    Considering you can buy an equivalent 4x4 with barely any badge status, having a Cayenne on your driveway will certainly perk the interest of your ...

    Scrappage

    Scrappage scheme ends, hard work begins

    Scrappage scheme ends, hard work begins

    I think that scrappage was exactly the shot in the arm the business needed and should be acknowledged as that, it’s now back to hard ...

    Car Makers Premier League – February 2010

    With the scheme’s official end date being the 31st March we are now in the scrappage end game so it will be very interesting to ...

    Scrappage scheme enters final stage

    The final phase of the Government's scrappage scheme began yesterday (Wednesday 24th February). Car manufacturers have been allocated shares of about 50,000 potential further orders based ...