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Test Drive Procedures Help to Deter Theft
Test-drives are an important part of the vehicle-buying process. They offer potential purchasers an opportunity to see, feel and drive a new vehicle. Test-drives also provide salespeople with a chance to demonstrate the features and benefits of a vehicle while it is on the road.
New-Car Dealerships have a huge responsibility to ensure that test drives are conducted properly. Not only for safety reasons but also due to the fact that automobile vehicle theft and insurance fraud are on the rise in Canada. According to the Insurance Bureau of Canada, auto theft is 64% higher then a decade ago. The annual cost to Canadians is measured, not in millions, but in billions of dollars. In the Greater Toronto Area (GTA) alone, on average, 50 vehicles are stolen every day. A vehicle stolen from a New-Car Dealership today could end up in Eastern Europe or the Far East within a few weeks.
This level of criminal activity forces New-Car Dealers, insurance companies and law enforcement specialists to be very cautious. To help minimize the risk of automobile vehicle theft and insurance fraud, New-Car Dealerships are encouraged to obey strict test-drive procedures. Thus both protecting their inventory of vehicles and ensuring their customer(s) safety. Failure to enforce these procedures increases a dealership?s vulnerability to vehicle theft, insurance fraud and subsequent lawsuits.
Criminals will go to great lengths to steal a vehicle, including posing as a ?shopper?. They have been known to stage a collision (on a test drive unaccompanied by a salesperson) and file fraudulent claims for injury.
Cases in which vehicles were returned after a test drive (during which time a duplicate key was made) and the vehicle was subsequently stolen are not uncommon. In fact, substitute keys have been returned after the unaccompanied test-drive only to have that individual return and steal that vehicle with the original keys. These types of criminal activities occur all too often in large metropolitan areas.
As Dealers we are aware that unaccompanied test drives have turned into high performance ?test-flights?. Vehicles have even been used as moving vans or for unapproved extended personal use. In fact, there is some question, as to when that vehicle can be reported stolen if no specific time lines were given for it?s return. Thieves have been known to take a demonstrator from one dealership, drop the vehicle off at another dealership, pick up another demonstrator and continue with this process of changing vehicles.
In the past decade, New-Car Dealerships have become more judicious about test drives. Insurance companies now require dealership salespeople to accompany customers on test drives and to ensure that he/she has a valid driver?s license.
Salespeople are not allowed to just ?hand over? keys to a customer. If they do so and the vehicle is stolen, then the dealership may not be covered by their insurance policy.
A salesperson must accompany a potential purchaser. Aside from being present to answer any questions about the vehicle, a salesperson can ensure that the driver does not abuse the vehicle ? driving in a reckless manner or driving in high-risk areas. It also ensures that the vehicle is returned in the same condition in which it left the dealership.
For most test-drives, New-Car Dealerships will designate routes that primarily consist of right turns. We try to avoid congested areas, construction and school zones. This is not only for safety reasons but also, because the customer may not be familiar with this type of vehicle.
Precautions should be taken when salespeople transfer control of the vehicle to the customer. Many salespeople are instructed to exit the vehicle with keys in hand. Vehicles have actually been stolen when the salesperson had stepped outside of the vehicle.
When it comes to test-drives, much of the onus is on the salesperson. He (or she) must make a series of important judgment calls and take steps to ensure that proper test drive procedures are followed.
A few procedural details should not deter customers from enjoying a test drive. When these simple procedures are followed, there is nothing like driving a new or pre-owned vehicle for the first time. It is an exciting experience for customers, an experience that can help them determine which particular vehicle is the right ?fit? for them.
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