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A couple of research reports have been published recently that look into the car-buying and servicing processes and the conclusion in both is that female motorists said they were more likely to be ripped off by dealers because of their gender.

Both research projects are very well grounded and extensively surveyed but I honestly believe that the real issue is that some of the perceptions held about our industry are seriously outdated and don’t actually relate to reality out there in dealerships up and down the country.

Consider the evidence. The financial investment needed to run a dealership, regardless of size, is enormous compared to most other industries – the capital tied up in stock, the investment in buildings and branding, rates, taxes, wages… And the returns available on that investment are usually pretty slim, so it would be a fairly short-term strategy to take some of your customers for a ride price-wise when selling or servicing a car. I’m not saying it never happens, but I can’t believe that any of the buying population should feel intimidated by either process.

I think a lot of these perceptions come down to stereotyping by the public; they believe they might be ripped off so feel they could have been regardless of the actual outcome. But at the same time, the car industry is just that – an industry – and making a return is the reason we’re all here.

Clearly the industry needs to help change those perceptions and I think we’ve already done a pretty fine job. The sales processes are usually much more transparent than they were even a few years ago and through qualification when the car is sold, customers can be offered extended warranty and servicing packages to help smooth the ownership experience into the longer-term. What better way to remove the perception of being ripped off than by taking out the need to pay for maintenance later on?

The research suggests there’s more to be done but I’d like to think that in our market, it’s the perceptions that need to catch up with the reality.

By Tim Heavisides, Group CEO of Car Care Plan Holdings.

This article originally featured in Car Dealer Magazine.

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