Clutch Report: Canadians Want an Easier and More Transparent Vehicle Purchasing Experience

Interactions at the dealership are a pain point with three-quarters of Canadian car purchasers stating that they would prefer to spend less time visiting dealerships

TORONTO, May 31, 2022 /CNW/ - As dealerships continue to face inventory shortages, the traditionally-treacherous process of purchasing a vehicle is becoming even more challenging. A recent survey by Clutch found that 84 per cent of car purchasers wish the process of shopping for a car was easier, with 76 per cent stating they would prefer to spend less time visiting dealerships to find the right car and 71 per cent agreeing that they would prefer not to negotiate with commissioned salespeople.

"It's not surprising that Canadians have grown tired of the dated car-buying experience where they're required to spend hours of their valuable spare time travelling between dealerships, haggling with salespeople or combing through the classifieds," says Dan Park, CEO of Clutch. "A car is the second largest purchase that most people will make in their lifetime, yet so many Canadians dislike the car purchasing experience."

The survey conducted by Ipsos on behalf of Clutch revealed that:

• More than half (55 per cent) of those who purchased a vehicle from a dealership in the past 2 years cite a sense that they needed more information
• 43 per cent of Canadian car buyers outright state that they do not enjoy the process of shopping for or purchasing a vehicle from a dealership, this is especially true in the prairies (59 per cent Saskatchewan/Manitoba)
• 21 per cent of car buyers have felt taken advantage of
• 27 per cent of Canadian car buyers say they do not trust salespeople to give them all the relevant details about a car and offer a fair price

A lack of trust in dealers and dealerships appears to be a driving cause of the difficult car-buying experience. The majority of car shoppers indicate that when it comes to levels of trust in used car dealers to provide all relevant details about a car and offer a fair price, 83 per cent either do not trust or only somewhat trust the sales person.

When it comes to effective solutions to improve the car-buying process, more than half of Canadian car purchasers (58 per cent) cite pricing transparency, followed by 38 per cent who want the option to test drive the car for multiple days, 37 per cent who want to skip the interactions with commission-based salespeople, and 32 per cent who desire more online options to skip the dealership all together. Only 12 per cent of recent car purchasers state that nothing needs to be changed, that the current dealership experience makes sense.

"It's clear that Canadians are ready for an improved car-buying process that no longer leaves them feeling taken advantage of," says Park. "We designed Clutch with a customer-first approach so that when customers visit our website, they're not being sold a car by a pushy salesperson, they're buying a car that best suits their needs."

While the COVID-19 pandemic may have initially led many Canadians to stay off the roads, they are now back behind the wheel with many ready for a new vehicle and eager to step away from the traditional dealership experience. Of those who recently purchased a car or plan to in the next two years, 61 per cent indicate they would consider purchasing a car online without seeing it in person first.

"At one point in time, people would have thought that purchasing a car online was absurd," says Park. "But once the pandemic struck and demand for contactless services skyrocketed, more Canadians began to explore online retail experiences like Clutch which is rooted in convenience, transparency and affordability."

With Clutch's customer-first approach, the features on its website will be extremely enticing to the large population of Canadians who want to make a confident and informed decision when purchasing their next vehicle. Those features include:

• Transparency of Vehicle Information: Each car listed on Clutch.ca goes through a rigorous 210-point inspection to ensure reliability, with both the inspection report and a free Carfax report being available directly on the listing page. High-resolution photos with a 360-degree tour of the interior, exterior and vehicle flaws are also available. 
• 10 Day Test-Own: All Clutch vehicles come with a 10-day test-own period with a full money-back guarantee, giving customers the time to see how the vehicle fits into their everyday life.
• Competitive Pricing: By removing the overhead costs associated with the traditional dealership model, like fancy showrooms and commissioned-based salespeople, Clutch is able to pass savings onto customers and offer competitive pricing.
• Customer Support: Clutch's customer support team is there every step of the way, from the moment a customer asks their first question to the moment that they deliver the car directly to the customer's home.
• Convenience: Clutch allows Canadians to browse thousands of quality vehicles from the comfort of their own home while accessing a fully-digital purchasing experience, which includes financing, insurance, and seamless home delivery.

"Ultimately, we want Canadians to enjoy the process of making a milestone purchase like a car," says Park. "We're raising the bar for customer service in automotive retail, and from our report, it's clear that Canadians are ready for the improved experience."

Other findings from the Clutch report include:

About the Study

• When it comes to car buying, 39 per cent agree salespeople have more information than they are providing and 28 per cent state that commissioned salespeople prevent them from feeling in control when purchasing a used vehicle.
• Among the 79 per cent of car buyers who prefer to bring someone along—a figure significantly higher among women (89 per cent women vs. 69 per cent men)—with 36 per cent indicating that they do so because they do not feel they are taken seriously, highlighting the lack of trust between car buyer and seller.
• Canadian car purchasers are looking for more transparency around the vehicle price and valuation (30 per cent), more vehicle history information before visiting the dealership (21 per cent), access to a Carfax report (15 per cent) and better pictures and videos of the vehicles (14 per cent).
• Three-quarters (76 per cent) of car buyers believe there is a lack of transparency between sales reps and customers.
• When visiting a dealership, only 13 per cent of Canadian car purchasers state that they enjoy the process and feel like they are totally in control.
• Before purchasing a car online, Canadian car purchasers have conditions:
• 39 per cent of those surveyed would want access to view owner and vehicle service history.
• 38 per cent want to be given reassurance that they would be able to return the vehicle if they are not entirely happy with it.
• More than a third (36 per cent) would want access to high-quality images of the interior, exterior, and existing vehicle flaws.
• Three in ten (30 per cent) want to speak with a customer support person when choosing their vehicle so they can ask questions.

These are some of the findings of an Ipsos poll conducted between February 2^nd-7^th, 2022, on behalf of Clutch.ca. For this survey, a sample of 2,001 Canadians aged 18+ was interviewed online. Quotas and weighting were employed to ensure that the sample's composition reflects that of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 2.5 percentage points, 19 times out of 20, had all Canadians aged 18+ been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

About Clutch

Clutch, founded in 2016, is a vertically-integrated online car retailer for pre-owned vehicles in Canada. Clutch aims to provide an incredible car buying experience for its customers by bringing a best-in-class ecommerce experience to the Canadian pre-owned car industry. By visiting Clutch.ca, customers can browse a large selection of high-quality vehicles at low prices and access an end-to-end online purchase experience which includes financing, insurance, and seamless home delivery. Clutch ensures complete peace-of-mind with each car being backed with a standard 10-day, 750 km money-back guarantee. Headquartered in Toronto, Clutch services Alberta, British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. Clutch is backed by a number of world-class investors including Canaan, BrandProject, Real Ventures, D1 Capital, Upper90, FJ Labs, Global Founders Capital and Azure Capital Partners. Learn more at Clutch.ca.

About Ipsos

Ipsos is the world's third largest market research company, present in 90 markets and employing more than 18,000 people. Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions. Founded in France in 1975, Ipsos is listed on the Euronext Paris since July 1st, 1999.

The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD). ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
www.ipsos.com 

SOURCE Clutch

Laura Gannon at [email protected]