According to a survey carried out in 2013, customers believe that car dealers make a 20% profit on a new car. However, the study revealed that this was not the case. The car dealers actually make a profit of 3.8% on any new car sold and much lower on used car. Perhaps unsurprisingly, the study gave an indication that the lack of transparency in the car buying process was the reason for this belief system.
Nowadays, there is a huge mistrust between dealers and customers. Due to the lack of information and existence of centralized data storage systems which is marred with many faults, customers have many doubts when purchasing a used car. These systems allow room for manipulation of data such as changing the provided date for your own benefit. Also, sometimes the dealer might demand a lower price because he has no idea about the real price of the car as sold in the market. Among others, these are some of the challenges that a dealer will no longer face once we launch the decentralized vehicle database.
Vinchain will give access to authentic information about all the cars so that all providers have transparency on the vehicle records. Because of the Blockchain technology, the information can be accessed by multiple users from anywhere in the world but can never be altered or deleted. With the help of Vinchain, a dealer will be able to accurately determine the market value of the car. He/she will be able to provide full information about the car when selling it, so that the customer will not have any trust issues. Vinchain creates transparency in the car buying process. As a result in a medium-term perspective, this is a winning strategy for building loyalty among consumers.