October 2021
Featured in this insight: Automotive
Almost three-quarters of UK adults incorrectly identified the value of a used car: A recent survey by CarGurus has found that 71% of British adults failed to correctly value a used car, with most of the respondents over-valuing the vehicle.
The study of over 2,000 participants also found a disparity between age groups when it comes to how confident car buyers are about estimating the price of second-hand cars. Eight in ten participants aged between 18 and 24 years-old said they felt confident in their answers, while less than two-thirds of 35 to 44-year-olds had the same optimism. Overall, 58% of participants stated they felt confident in guessing the value of a car.
During this study, the participants were asked to value cars including: a BMW 3 Series, an electric Nissan Leaf and a Ford Fiesta. having been told they were all two years old and had been driven over 20,000 miles. Thirty-eight percent (38%) of the respondents over-valued the BMW 3 Series by at least £4,000, while one in ten over-estimated the value of the Ford Fiesta by at least a quarter.
However, when asked about the price of the electric Nissan Leaf, the participants over-valued by an average of 20%, with a total of nearly £4,000 being added to its actual value of £19,500.
The survey also found that the older age groups were better at estimating the value of second-hand cars, with nearly a third of those aged between 35 and 44 correctly identifying the price of the BMW 3 Series. On the other hand, just 8% of those aged between 18 and 24 were correct.
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