Clutch report: Canadians find used-car buying process problematic

Photo courtesy of Clutch.
By subscribing, you agree to receive communications from Auto Remarketing and our partners in accordance with our Privacy Policy. We may share your information with select partners and sponsors who may contact you about their products and services. You may unsubscribe at any time.
More than two-thirds of Canadians are mistrustful of car dealers, according to a report from online used-vehicle retailer Clutch.
The Used Car Buyers’ Confidence Report, conducted by Angus Reid on behalf of Clutch, found 68% of survey respondents said they don’t trust traditional car dealerships to have their best interests in mind, while just 23% described their used-car purchase process as smooth.
The other 77% said they had issues or setbacks, according to the report, including 81% for car buyers aged 18-34 and 83% for those 35-54.
The problems included price negotiations, cited by 55%, undisclosed mechanical or cosmetic issues (50%) and pressure from salespeople (50%). Those same issues were also the top three choices when Canadians were asked what frustrated them about their buying experience, with undisclosed mechanical or cosmetic issues (40%) at the top of the lost, followed by price negotiations (35%) and pressure from salespeople (31%).
“Those patterns underscore a clear disconnect,” Clutch said in a news release. “The more consumers feel they are being ‘sold to’ instead of informed, the more confidence erodes.”
The report said a third of survey respondents said they’re uncomfortable negotiating with salespeople, with 22% preferring to avoid it entirely and 11% of respondents calling it stressful or overwhelming. The report said women (39%) are more likely than men (28%) to feel uncomfortable with negotiation, while 37% of younger and middle-aged buyers citing it as an issue.
Subscribe to Auto Remarketing to stay informed and stay ahead.
By subscribing, you agree to receive communications from Auto Remarketing and our partners in accordance with our Privacy Policy. We may share your information with select partners and sponsors who may contact you about their products and services. You may unsubscribe at any time.
“Buying a car is one of the biggest financial purchases Canadians make,” Clutch CEO Dan Park said, “yet for too long, the process has felt unclear, high-pressure and stacked against the buyer.”
According to the report, Canadians used-car shoppers are seeking increased transparency, with 75% saying their confidence would be boosted by transparent vehicle history and condition reports — including 82% of 35-54-year-olds and 80% in the 18-34 range — and 72% said the same about an included independent inspection.
Clutch said 55% cited a longer return window or satisfaction guarantee would create confidence, and 33% said no-haggle pricing.
Asked how dealers could build trust, 56% said both a short in-person test drive and a multi-day return policy would help, with 78% noting they likely wouldn’t use a return policy but having the option would provide peace of mind. The report said 36% said they want 1-3 days of use before purchasing a used vehicle.