Vehicle returns and buyer disputes are among the biggest challenges faced by dealerships. They not only affect profitability but also have the power to irreparably damage a dealership’s reputation. One of the most effective ways to reduce these issues is by offering vehicles that have undergone a rigorous inspection process. These services result in certified pre-owned vehicles that go a long way to preventing misunderstandings about a car’s condition and ensures that buyers make informed decisions, reducing the likelihood of disputes after purchase.
Let’s take a closer look at how this kind of service is a necessary safeguard that should be implemented in the pre-owned vehicle market.
Common Causes Of Returns And Buyer Disputes
There are a lot of reasons why a customer might return a vehicle to the dealership. Sometimes it’s related to the buyer’s financial status, where they’ve bitten off more than they can chew – so to speak. But most of the time, vehicle returns and buyer complaints stem from hidden defects, undisclosed damage, or mechanical failures that appear shortly after purchase.
The fact is that buyers who feel misled or discover unexpected issues with their car are more likely to demand refunds or initiate disputes.
This is the exact reason why services, like the AA Certified Pre-Owned accreditation, have been launched to market. The AA Certification in particular, has been provided to significantly reduce these risks by providing an independent, multi-point inspection that confirms the vehicle’s condition before sale. By presenting customers with an AA-certified report, dealerships can demonstrate transparency and build trust, making buyers less likely to return vehicles or raise disputes.
Impact On Dealership Reputations
A dealership’s reputation is one of its most valuable assets. Customer reviews and word-of-mouth recommendations have the power to either boost or damage a dealership’s credibility. In some cases, the damage can be irrevocable and begin a downward spiral for the business. This tends to happen when buyers experience issues with their vehicles – they are quick to leave negative reviews and spread the word, which can deter potential customers.
When a dealership partners with the AA, however, they are able to provide consumers with credible information on pre-owned vehicles they intend purchasing. Through the service, dealerships can offer an AA-approved 125-point inspection of vehicles and thereby provide a comprehensive report on the vehicle to prospective buyers. This is leaps and bounds more than the “pass” or “fail” assessment of a vehicle that’s traditionally relied upon.
Essentially, by selling AA-certified vehicles, dealerships position themselves as trustworthy and customer-focused businesses. This not only improves customer satisfaction but also encourages positive reviews and repeat business. Buyers are more likely to recommend a dealership that provides them with a smooth and hassle-free experience.
Avoid Costly Legal Issues
Legal disputes in the used car market are expensive and time-consuming. However, with consumer protection laws becoming stricter, and buyers becoming more informed about their rights, these disputes are on the rise. The last thing you want, as a dealership, is to sell vehicles that have the potential to develop serious issues soon after purchase.
Instead, independent dealerships can partner with the AA and offer consumers AA Certified Pre-Owned accredited vehicles that have been subjected to a meticulous examination.
This assessment typically includes:
- A thorough mechanical assessment that looks specifically for any signs of wear and tear common to driving conditions in South Africa, providing an accurate insight into whether the car can deal with anything from Cape Town’s coastal conditions to Johannesburg’s stop-start traffic.
- A detailed electrical systems review to ensure that every safety feature, which is crucial for our road conditions, is working optimally.
- An examination of the car’s structural integrity, accounting for characteristic stresses relating to roads in South Africa that could be placed on the car’s body and chassis.
- A thorough examination of the history of the vehicle, a welcome inclusion given that car theft and fraud remain noteworthy concerns in the preowned vehicle market.
In a market where transparency is hard to come by and promises are hard to keep, this type of certification serves as a beacon of trust and assurance for both buyers and dealerships.
Search AA Certified Pre-Owned accreditation for more.