Headealer Zero expands diagnostic error compensation coverage

To mark the fifth anniversary of its zero service launch, HeyDealer, a used car platform, announced that it has implemented a 'Peace of Mind Purchase Policy' from 1 June, which comprehensively reflects the opinions of its member dealers, and has overall enhanced its customer protection policies.

This new zero Peace of Mind Purchase Policy focuses on strengthening diagnostic accuracy and expanding compensation for diagnostic errors, aiming to create an environment where both member dealers and vehicle-selling customers can trade with greater confidence. HeyDealer is reinforcing protective measures across the entire transaction process, including compensation for changes in accident classification, compensation for powertrain and oil leak repair costs, and responses to accidents during transportation and delays in vehicle payment deposits.

HeyDealer Zero is a used car purchase service launched in 2021. It operates by having a professional appraiser visit the customer directly to inspect the vehicle before conducting an auction. The service has received positive feedback from customers for reducing the face-to-face dealer procedures that were essential in the traditional used car sales process. Since its launch, the Zero service has grown rapidly over the past five years and currently records a customer satisfaction rate of approximately 94%.

To mark the fifth anniversary of the Zero service launch, HeyDealer gathered opinions on service improvements from its member dealers on four separate occasions. As a result, a total of 8,871 opinions were received, and 91% of respondents indicated an intention to continue using the Zero service, confirming a high rate of reuse. Furthermore, in this opinion-gathering exercise, member dealers identified improving diagnostic accuracy and expanding compensation for diagnostic errors as the most important areas for improvement. In particular, there was strong demand for enhanced diagnostics for panel beating and painting accidents, improved engine-related diagnostics, compensation when an accident-free vehicle is reclassified as having a minor accident, and compensation related to powertrain components.

Accordingly, HeyDealer is strengthening compensation for diagnostic errors. It has newly introduced 'compensation for reclassifying an accident-free vehicle as having a minor accident', meaning that if an accident classification is changed from completely accident-free to having a minor accident, compensation will be paid both for each newly discovered accident area and as additional compensation proportional to the vehicle's price. This provides member dealers with an institutional safety net to reduce the burden of losses caused by diagnostic errors.

Repair compensation is also being expanded. For powertrain and oil leak repairs, 100% of the actual repair costs based on the maintenance statement will be compensated. However, to prevent side effects such as obtaining a maintenance statement without actually carrying out the repairs, a related verification system will also be strengthened. Additionally, if a member dealer suffers damage because a vehicle owner's mortgage has not been discharged or due to third-party fraud involving a used car, HeyDealer has agreed to take over the vehicle and bear responsibility for related legal disputes.

The compensation processing procedure has also been improved. Applications for diagnostic error compensation will, in principle, be processed within 10 business days. Furthermore, a 'Zero Diagnostic Error Re-examination Reception Centre' has been launched, allowing dealers to request a second review if they disagree with the compensation result.

Alongside the policies for member dealers, the peace of mind policy for customers selling vehicles through the Zero service has also been enhanced. Firstly, a system has been introduced whereby HeyDealer takes 100% responsibility in the event of problems such as traffic accidents during transportation or negligence by the transport driver. Additionally, if the purchasing dealer delays depositing the vehicle payment, HeyDealer will pay the vehicle price in advance, reducing the risk of the customer not receiving the payment.