FEATURE: The Used Car Fuel Economy Label – a valuable addition to the used car dealer’s tool-box
Mon 24 January 2011
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(Copy of LowCVP article submitted for publication to the Retail Motor Industry's publication 'Aftermarket Intelligence' in January)
A free-to-use labelling scheme to make used car buyers more aware of fuel economy and CO2-based taxation has received the thumbs-up from customers and dealers. The Used Car Fuel Economy label is a voluntary initiative for dealers, developed by the Low Carbon Vehicle Partnership (LowCVP) with support from the Retail Motor Industry Federation (RMI), the Society of Motor Manufacturers and Traders (SMMT) and the Government.
The used-car colour-coded label is similar to the label now widespread in franchised dealers on new cars providing consumers with clear, ‘at a glance’ information on the running costs, fuel consumption and environmental performance of used cars available from participating dealers.
In the first full year of the scheme over a third of a million used-car labels have been displayed by around 1300 dealers engaged in the scheme. This is in addition to an estimated one and three-quarter million labels displayed on new cars.
A survey by HPI (which provides a replica of the colour-coded label certificate in its widely-used HPI Check for used car buyers) found nearly 60% of car dealers said that the presence of the label aided or improved the sales process. Noted benefits reported by dealers were that the labels gave clear, accurate and simple information at the point of sale that are both independent and specific to the vehicle
A separate survey of used car buyers conducted on behalf of the LowCVP found over half said their impression of the dealer had been enhanced by displaying the label. Two-thirds of used car buyers said that the information had influenced their purchase decision - 25% being ‘strongly influenced.’
Car dealerships that wish to label used cars in their showrooms or forecourts may do so free of charge by downloading and printing a label unique to the vehicle from a database hosted and maintained by the Vehicle Certification Agency.
Labels are also available free of charge through HPI Check – What else is included?
The LowCVP Managing Director Greg Archer said, “With fuel prices around 130p/l it is unsurprising that used-car buyers want clear information on fuel economy this voluntary scheme provides. Increasing numbers of dealers are realising and reaping the benefits from this free to use scheme.”
RMI Director Sue Robinson said at the launch of the scheme: “The RMI supports the new Used Car CO2 labelling programme as it better informs retail customers about used car running costs. Therefore the RMI is urging all used car dealers to sign up to this scheme.”
WhatCar? Group Editor, Steve Fowler commented: “Now more than ever, car buyers want reliable information on the running costs and environmental impact of cars they are looking to buy – a used car economy label gives them precisely that.”
(This article was submitted for publication to the Retail Motor Industry's publication 'Aftermarket Intelligence' in January.)
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