Seventy-six per cent of Black Canadians and 82 per cent of non-Black minorities point to a negative experience at a dealership, according to a new study commissioned by Accelerate Auto. In comparison, 64 per cent of white consumers report having a bad experience.
The study was conducted by research firm RKI and included 1,116 Canadian respondents. The findings point to differences in the vehicle buying experience between Black car shoppers (and non-Black minorities) in Canada, versus white consumers.
“This survey reveals Black Canadians and other minorities feel they are treated differently at dealerships, and they have developed strategies to combat the biases they encounter,” said Christopher Nabeta, Executive Chair of Accelerate Auto.
Black consumers (20 per cent) are more likely than white consumers (15 per cent) to experience being steered towards less expensive vehicles — or having the salesperson assume they cannot afford the vehicle. And 22 per cent of Black consumers said the salesperson at the dealership assumed they had a poor credit score, compared to 12 per cent of white car shoppers.
Furthermore, 73 per cent of Black shoppers and 74 per cent of non-black minority consumers will use at least one tactic when preparing to visit the dealership, to ensure the sales staff will treat them with respect. This includes dressing well and doing extensive vehicle research prior to their visit so that they come across as experts.
“Our organization was created to help our industry partners — OEMs, dealers and suppliers — identify and close these gaps. We need to revisit how we are treating all buyers who walk into our showrooms,” said Nabeta. “There’s some good news in our findings too, since 92 per cent of respondents have had a positive dealership experience when looking at vehicles.”
As for a career in automotive retail, the survey found that Black/minority consumers (30 per cent and 23 per cent, respectively) are more inclined to switch industries for better workplace diversity, compared to 15 per cent white consumers.
However, 18 per cent of Black consumers also feel that the automotive industry is not welcoming to People of Colour, compared to 10 per cent of white consumers. But good pay, up-to-date technology, and continuous learning are seen as positive attributes by nearly all of the survey respondents. For more info about Accelerate Auto visit: www.accelerateauto.ca.