It looks like a lot of Canadian consumers suffer from what's being called Negotiaphobia. The primary "symptom" of this is a lack of consumer confidence when it comes to car buying. In fact, these consumers are so intimidated by the thought of negotiation that they're putting off vehicle purchases.
A lot of this fear of negotiation comes from a lack of knowledge when it comes to buying and trading in vehicles. But, luckily, autoTRADER.ca has unveiled new online tools meant to boost consumer confidence.
Why there is a Lack of Consumer Confidence in Car Buying
In a recent study from autoTRADER.ca, it was revealed that 47 per cent of those polled are in the market to buy a car. However, 18 per cent of these would-be buyers are stalling because of their Negotiaphobia. They simply don't want to have to deal with negotiating at a dealership.
Findings from another part of the study might explain why consumer confidence is down among car buyers. It turns out that many Canadian car owners are clueless when it comes to vehicle values.
In fact, out of those who took the survey, 73 per cent didn't know the current value of their vehicle. And when asked to guess the true value of popular used car models, 90 per cent failed. Meaning, they were unable to get within $1,000 of the correct values. Instead, the majority of these consumers undervalued the vehicles by thousands of dollars.
Boosting Consumer Confidence with Online Tools
In order to help consumers find the value of their trade-in vehicle, autoTRADER.ca has developed the "I.Q." tool. This feature can calculate value estimates so that car buyers can be more confident about getting a good deal.
About half of those surveyed didn't think they would get a good deal the next time they bought a car. And of these consumers, 59 per cent said that they "would rather keep their old vehicle than negotiate a car deal."
The "I.Q." tool allows consumers can get up-to-the-minute data about vehicle values. This data includes the following types of information:
Find out if a car that you're interested in is priced fairly when compared to the average market value.
Get help with determining the condition of a vehicle that you want to trade.
Learn how certain features affect the value of a car that you are either trading in or looking to purchase.
Receive a snapshot of everything that’s included in the other sections.
While all car buyers can benefit from these new online tools, Millennials, it seems, may find them the most helpful.
Inspiring Millennial Car Buying Confidence
As a generation, Millennials have a lot of buying power. But according to the autoTRADER.ca survey, they don't have much consumer confidence.
Older buyers seemed to be the most confident about being able to negotiate with a salesperson. 59 per cent of Baby Boomers, in fact, said that they could get a good deal on a vehicle.
On the other hand, Millennials (aged 18-34) seemed much less confident about their ability to negotiate. Only 28 per cent of them said that they would be able to get a good deal on a vehicle.
However, this consumer group is known for being tech-savvy. Maybe they will use online tools such as the ones being offered by autoTRADER.ca to their advantage.
Inspiring Confidence in Credit-Challenged Car Buyers
When it comes to buying a car, if your top concern is finance approval, Canada Auto Loan can help. Whether you have damaged credit or no credit, we can assist you with getting an auto loan. We can quickly match you with a dealership in your area that can give you your best chance at an approval.
And because our service is free and comes with no obligations, you can apply with confidence. Go ahead and fill out our simple and secure online application to get started today.