"Bought and fixed" is no longer the norm: they propose to make the used car market responsible
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- "Bought and fixed" is no longer the norm: they propose to make the used car market responsible
Russians purchase more than half a million used passenger cars every month. However, it is not so easy to find "fresh" copies that do not require significant repair costs. More than half of buyers of used cars face technical problems in the first year of operation, analysts say. Izvestia found out who is better off buying a reliable car from, a dealer or a private trader, and whether the cost of ownership can negate the benefits of buying a car with your own hands.
Repairs in the first year
According to a survey by the Union of Automobile Dealers (SAD), 57% of car owners faced technical problems after buying a used car. Among the most common problems are undeclared road accidents, safety issues, technical inconsistencies, and twisted mileage.
Moreover, 22% of respondents who bought cars from private traders had problems with the safety of the car, compared to 8.7% of those who purchased it from dealers. In general, 41% of respondents who bought used cars on their own from private sellers faced problems.
Reputation is not important
Private sellers either do not know about the shortcomings, as they do not have the opportunity to conduct a thorough diagnosis, or simply save money, said Vyacheslav Zhigalov, president of the GARDEN.
— Some may intentionally hide flaws, and sometimes resort to outright fraud, for example, twisting the mileage. For a private trader, unlike professional sellers, reputation is not important — they meet with a client only once. Many so—called gray players act similarly - one-day car dealerships or outbidders, which for some reason are very difficult for the buyer to find later," Zhigalov noted.
Sellers of used cars often try to hide a lot of different brewing internal problems, says Nikita Rodionov, technical director of the international franchise network of car service Fit Service. The need for a large number of repairs and replacements in the chassis, serious problems in the fuel or electronic systems of the car — all this requires significant costs.
They want to save money
The SAD survey showed that 77% of Russians, when planning to buy a car, immediately consider only options on the secondary market. The price remains the main criterion when choosing — 71%, while the safety and technical condition of the vehicle occupy only the fifth place among the respondents (41%).
According to <url>, Hyundai Solaris can be purchased from hand for an average of 939 thousand rubles, and it will cost an average of 1 million 15 thousand from a dealer, 8% more expensive. Kia Rio costs 964 thousand against 1 million 72 thousand rubles (+11.2%). For Lada Granta, private traders ask an average of 577 thousand rubles, dealers — 672 thousand (+16.4%), for Lada Niva/4x4 with mileage — 386 thousand and 474 thousand, respectively (22.9%). The average price tag for a Toyota Camry among private owners is 1 million 944 thousand rubles, in a car dealership — 2 million 350 thousand rubles (20.82%).
However, not always popular cars are more expensive at dealers. So, the average cost of Lada Vesta for private owners is slightly higher — 1 million 48 thousand against 1 million 34 thousand rubles. Like the Skoda Octavia — 1 million 64 thousand against 1 million 60 thousand rubles.
However, according to the SAD survey, more than half (56%) of buyers of a used car had to invest up to 20% of the transaction amount in it in the first year of operation. About 6% were not lucky at all — in the very first year they invested from 70 to 100% of the initial transaction amount in a new acquisition. Only a fifth of buyers did not have to invest extra money in the first year of operation of the purchased used car.
The older the car, the more parts and assemblies will be worn out, Nikita Rodionov notes.
— Most often, cars older than five years require repair of suspension elements. Next, in terms of the frequency of services at car service stations, there will be work on the fuel system, steering, internal combustion engine, braking system, electrics and electronics," he said.
Why dealers are more expensive
The price difference is understandable, says Denis Zhiltsov, PhD in Economics, Associate Professor of Logistics at the Financial University under the Government of the Russian Federation.
— Firstly, dealers usually offer more "fresh" cars with less mileage. Secondly, and most importantly, they are directly interested in thoroughly checking the technical condition of the car before selling it. It is more important for a dealer to preserve his reputation and avoid legal disputes than to make money on one problematic sale," Denis Zhiltsov believes.
An analysis of ads on <url> shows that, for example, the "private" Hyundai Solaris has an average age of 9.8 years and a mileage of 164 thousand km, dealer — 9 years and a mileage of 134 thousand km. Ford Focus for private owners has an average age of 15.6 years and a mileage of 217 thousand km, dealers — 12.9 years and mileage 177 thousand km.
The same is true for other popular models: Toyota Camry — 11 years and 186 thousand km versus 7.5 years and 126 thousand km, Lada Granta - 7.3 years and 114 thousand km versus 5.2 years and 81 thousand km. Skoda Octavia, despite approximately the same average price, private owners usually have a mileage of more than 205 thousand km. and the age is 12.1 years, while the dealers have 11.9 years and 190 thousand km.
The dealer operates within the strict framework of the law "On Consumer Rights Protection," Vyacheslav Zhigalov recalls.
— Therefore, when buying a used car on the market or accepting it as a credit for a new one for resale, the authorized dealer conducts a thorough technical diagnosis and pre-sale preparation, as well as checks the legal purity of the documents. Often, the dealer provides the new owner with a guarantee for individual components or the car as a whole. Therefore, it is really safer and often cheaper to buy cars from trusted sellers, if you take into account not only the purchase price at the moment, but also the cost of further maintenance," the SAD president believes.
The lawyer warns
— If the dealer has bought the car and, accordingly, acts as the seller, this transaction is the cleanest. The car will be scrupulously checked, because the dealer pays his money at the time of purchase. And then, in case of absolutely any problems with the end customer, all these issues will be resolved directly with the car dealership. It is worth noting that large car dealerships often guarantee the purity of the transaction," said Maxim Shelkov, an auto lawyer.
It's another matter if the car is sold at a dealer under an agency agreement, the lawyer noted. Then the dealer is not the owner, but only an intermediate link, here the car is most likely checked less scrupulously.
— A deal with an individual is more risky in itself. You need to look very carefully and in detail at what kind of private trader he is. Check the car itself, check the person, see if there are any cases in the arbitration court, whether the person is going into bankruptcy. Although he may go into bankruptcy even after the deal," said Maxim Shelkov.
In addition, it is much easier to enforce a court decision against a car dealership, if it does come to trial, because the dealer has official bank accounts.
Is there a guarantee of protection?
Buying from a dealer by itself does not give one hundred percent guarantee that the buyer will leave in a trouble-free car.
— It all depends on the dealer's integrity, on the integrity and qualifications of the diagnosticians who work at his service station. There is a lot of human factor here that can negate all attempts. Therefore, I would not say that buying from a dealer is definitely lower mileage, the mileage could have been twisted or the fact of twisting was not revealed. A dealer is, in fact, an overbought, only under the roof. But his task is the same: buy cheaper, sell more expensive, and invest at a minimum," says auto expert Peter Bakanov.
Unlike private sellers and so-called outbiddings, it is possible to protect the buyer from unscrupulous dealer sellers, experts say. To do this, it is necessary to develop common rules for everyone.
— The consumer must receive thorough pre-sale preparation of the purchased car, clear warranty obligations and high-quality after-sale service. Without legislative consolidation of these norms, there is a risk that the problems of the private market will be transferred to organized networks, which may eventually lead to an increase in accidents and saturation of the market with unsafe transport. Ignoring this problem can lead to an increase in the number of road accidents, including those with serious consequences, as well as to the further spread of counterfeit spare parts and worn-out units," says Oleg Cherednichenko, Associate Professor of the Department of Economic Theory at Plekhanov Russian University of Economics.
Vyacheslav Zhigalov believes that in order to generally improve the situation in the secondary market, it is necessary to classify service market participants according to the quality of repairs and used spare parts. Another effective measure would be to register the mileage of the car in a single database for each maintenance and repair.
These measures will eliminate the vast majority of problems that consumers have when contacting dealers, and improve the safety of cars taking to the roads, the President of the SAD is confident.
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