Car dealers give worst deal - study

The image of car dealers as sheepskin coat clad wide boys may seem cliched but they are the worst offenders when it comes to …

The image of car dealers as sheepskin coat clad wide boys may seem cliched but they are the worst offenders when it comes to giving customers a fair deal, according to a Government survey.

In its unpublished report the Consumer Strategy Group, which is advising the Government on developing consumer policy, looked at where consumers incur the greatest loss in their dealings with the suppliers of goods and services. Motor dealers came out worst, followed by insurers and restaurants. Grocery retailers came sixth and the banks a surprisingly good 10th.

The group examined several factors in addition to the amount of money involved in the transaction. It also took into account of the consumer's relative income and the importance of the purchase, as well as factors such as frequency of purchase and the willingness of the organisation in question to resolve disputes.

Sectors such as clothing, groceries, motor dealers were all given weightings on the basis of these factors. The weightings were then adjusted for the incidence of consumer complaints in these sectors, based on the group's own research and from CSO data.

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The results were 1: motor dealers; 2: insurers; 3: restaurants; 4: electrical items; 5: trades people; 6: groceries; 7: pubs; 8: clothing; 9: telecom providers; 10: banks.

Chief executive of the Society of the Irish Motor Industry Cyril McHugh challenged the findings yesterday. He said it was hard to comment without having read the report, but buying a car was a large and significant transaction and this probably pushed motor dealers up the list. He said that if housing had been included in the study, estate agents would almost certainly have headed it.

The group said the study was not intended to be final or conclusive.

John McManus

John McManus

John McManus is a columnist and Duty Editor with The Irish Times