10% cheated while trading car with private individual: Survey

More than half of the people have experience with buying from or selling a car to a private party, according to a survey conducted by OP Financial Group.

Despite this, many are wary about the sales process and nearly one in ten say they have been cheated or misled when buying or selling a car, said OP in a press release on Wednesday.

Pivo, which is part of OP Financial Group, is launching a new service that improves the security of car sales between private parties.

Every year, nearly 300,000 cars change hands in Finland between private sellers and buyers.

According to a survey by OP Financial Group, males under 35 are the demographic most likely to buy a car from a private party.

The top reason for buying from a private seller is that the car on sale is a suitable model. Other reasons for buying from a private party are lower cost and that the seller is a friend or family member.

On the other hand, respondents are less enthusiastic about the ease of the sales process.

"The most common causes for concern in car sales between private consumers is the vehicle condition and whether the other party can be trusted. Other aspects that cause concern include the division of responsibilities between the buyer and seller, payment, transfer of ownership and the accident history of the car," said Kristian Hiljander, Director, Motor Vehicle Insurance at Pohjola Insurance.

The results of the survey show that, on average, buyers are willing to spend around 9,100 euros on a car from a private seller, and the majority want to fund the purchase using only their savings. Car owners change vehicles on average every six years or when the odometer reading is about 152,000 kilometres.

In the most common type of scam, the car condition does not match the seller's promises. However, the survey's respondents also reported cases where it turned out that the seller was not the real owner of the car, the buyer had failed to register the car in their name or pay the agreed price, or the car insurance payments were in arrears. In one case, a party attempted to present fraudulent receipts of payment.

In the OP Smart Contracts service, both the seller and buyer must verify their identity using strong identification, the vehicle and owner's details are retrieved from Traficom, and the parties receive a pre-filled contract of sale. The financing of the car, payment of the sale price, transfer notification, vehicle insurance and registration can also all be taken care of in the service.

"The service makes buying or selling a car effortless, secure and smooth," said Hiljander.