Used vehicle advertising and retailing investigation

Organization

Automobile Protection Association (APA)

Published

2004

Summary

The Automobile Protection Association (APA) investigation is the first study to combine three elements - used car dealer advertising, labelling/disclosure and vehicle fitness - and record the results on video. This joint study of 60 dealers is also the first to be performed in Canada's two largest metropolitan areas concurrently. Unlike most previous studies conducted primarily from an enforcement or legal compliance perspective, the APA study was designed to duplicate an actual buyer's experience. The mystery shoppers began just as consumers do, by opening automotive advertising sections of their local newspapers, and continued their shopping right up to the point of purchase. About half the dealers visited failed in one materially important area or more. The investigation demonstrates problems with disclosure of important information on the vehicle and pricing, and difficulty in obtaining an inspection prior to signing a contract. The APA also discovered an industry tendency to describe as "accident-free" any car that is not structurally damaged, salvaged, or rolled over.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database