Second-Hand Car Market
13.02
From 2013 to 2014
In a study on the performance of the used car market, TML provided support in the design and interpretation of a comprehensive consumer survey. In addition, TML developed a method for quantitatively estimating consumer harm when buying used cars, based on the survey results.
Results of the November 2012 Market Monitoring Survey show that the second-hand car market is the lowest scoring goods market for the third year in a row. The European Commission is funding further in-depth research to find out why this market is performing poorly from a consumer perspective and what actions the EU can take to strengthen it. It shows that the used car market faces problems such as low trust in used car dealers and a lack of knowledge among consumers about the used car they wish to buy. This leads to consumer powerlessness and dissatisfaction.
This research was based on a comprehensive survey with the following objectives:
TML was involved in this project as an expert to support survey design and interpretation. TML also worked on the subtask focused on pricing, in which we developed a method to quantitatively estimate consumer harm in the purchase of second-hand cars, based on the survey results.
Results of the November 2012 Market Monitoring Survey show that the second-hand car market is the lowest scoring goods market for the third year in a row. The European Commission is funding further in-depth research to find out why this market is performing poorly from a consumer perspective and what actions the EU can take to strengthen it. It shows that the used car market faces problems such as low trust in used car dealers and a lack of knowledge among consumers about the used car they wish to buy. This leads to consumer powerlessness and dissatisfaction.
This research was based on a comprehensive survey with the following objectives:
- To determine to what extent used car dealers comply with existing legal frameworks, both at EU and national level.
- To find out to what extent consumers can make informed choices when buying a used car. Here, we examined the information received by consumers in terms of transparency, accuracy, and understandability.
- To observe and try to understand the main problems experienced by consumers and the handling of customer complaints after purchase.
TML was involved in this project as an expert to support survey design and interpretation. TML also worked on the subtask focused on pricing, in which we developed a method to quantitatively estimate consumer harm in the purchase of second-hand cars, based on the survey results.
