Consumer confidence key to credit crunch

Exchange & Mart has warned that the worrying rise in the number of people seeking to buy cars privately could be a big problem for the industry.

Recent research has indicated that more people than ever before are considering buying privately, rather than go to a dealership.

A surprising 11 per cent increase in the past three years has lead Exchange & Mart to this conclusion - it is a trend that needs to be carefully monitored.

"When we last undertook the survey in 2005, the private market was the preferred channel, but it's the size of the rise that is ringing alarm bells," admitted Debra Healy, digital director at Exchange & Mart.

"Consumers have long believed they may get a better price if they sell their car privately but the increase in those looking to buy in this marketplace indicates that more and more consumers have a perception that better deals are available privately."

"Price is always a major consideration in all buying and selling decision but it isn't the only factor," Ms Healy added.

"Dealers have always offered long-term value for money, through a range of packages that cover the consumer in all eventualities. This unique strength is one the private market cannot match.

"The key to coming through tough times is having the confidence to stick to what dealers do best and not get sidetracked into an ultimately destructive price war to take on the private market.

"By continuing to exceed consumer expectations will help rebuild consumer confidence, which could be crucial in the current climate."