What is the Relationship between Buying a Used Car and Consumer Protection?

Abstract

There are industries and professions which are perceived by the public as having undesirable characteristics that make them risky for consumers. These characteristics may exhibit themselves through the circumstances surrounding the use of the good or service, or they may be exhibited in the behavior of the professionals in the industry. In many cases, consumers are hesitant to interact with these industries for fear of having a negative experience. Lawyers, used-car salespeople, insurance salespeople, and politicians are good examples of industries or professions that consumers consider should be avoided when possible. Indeed these stereotypes are often perpetuated through television series, movies, and books. These stereotypes exist, at least in part, because consumers view these professions and industries as being risky for consumers. One particular industry stereotyped in this way and characterized by consumer mistrust is the used-car industry. Gallup’s polls on the trustworthiness of professions show that Americans consistently rank car salespeople as one of the least trusted groups (Gallup, 2016, 2017, 2018).