The Dealer Playbook
The Dealer Playbook

Episode · 3 months ago

Avoid Risk: At-Home Car Deliveries


Car dealers are aiming to provide a "Carvana-Like" experience, but what are the risk issues that dealers will face moving into a remote retail environment?

Tom Kline, founder of Better Vantage Point explains the "Home Solicitation Act" and why dealers need to be aware of it. 

It may not be as simple as just delivering vehicles or "selling" vehicles at the car shoppers' place of residence. 

Yeah, we're all pursuing this carbon uh ohthere's Carbonneau there's room, there's I mean in Canada there's Canadadrives auto trader and they're all doing this similar thing, delivervehicle to home, buy it online, etcetera. What do you see looking downthe road as some of the new issues perhaps or evolved risk issues thatdealers are going to face as we move into a remote retail environment. Yeah,so it's amazing to me when dealers, I i it's one of the questions I asked whenI go in and say how many sales are happening at customers houses and inthe States, there is a law called the Home Solicitation Act, which originallywas, I think, I think the history...

...behind that is a vacuum cleanersalesman who would bring on your ring, your doorbell, throw dirt on yourcarpet and then, you know, vacuum it up, right? And so people would buy vacuumsand and they, you know, they got sold vacuums for way over price and then thefence came in and said, we can't can't do this anymore, stop throwing dirt onpeople's carpets, they don't like it anymore, right? But with the homesolicit and there's, I've talked to various lawyers who disagree on this.So, amongst lawyers, this is uh not not a simple answer, but if you do, ofcourse that's a lawyer and I'm just picturing a group of lawyers sittingthere going, you know, who really grinds a g is door to door vacuum sit,they got to be the scum of the earth, you know, like I don't know why they'refrom the Bronx or whatever, but that's right. But the hope that the homesolicitation act says that if you do...

...any selling at someone's home, thatyou're required to follow the act. Now, the worst part of this is if you don'tfollow the act and the act is you have to sign a piece of paper giving themthree days to bring the car back or whatever. You know you're buying. Butif you do any negotiation or any selling at their house, then you'rerequired, the way I read it and I'm not a lawyer, but I'm a compliance guy. SoI read it is, you have to, you have to follow it. If you don't follow it, thepenalties are extraordinary. The penalties are that at any time there'sno time frame built into the code. So a customer could drive a car for fouryears and then come back to the dealer and say, uh, you didn't follow the homesolicitation act. And I'd like all my money back. And the way that it readsis the dealer would have to give all the money back. That's the way it readsto me. So if you're doing any selling... a customer's house and I don't knowwhat carbon a or room or doing about this. Um, but if they're not followingthe home solicitation act and they're listening, they can hire me and I'mgoing to tell them they should follow the home solicitation actors what's thebig deal? I mean, the big deal is that you have a three day right ofrescission. A lot of these companies are giving people seven days to backout anyway. Right? Carmax have, I don't remember what their their most recenttest drive. I think you test drive for 24 hours or seven days. I don'tremember. But this is just not a big deal and they shy away from it becauseit's compliance needs sales and some dealers get a little upset when thosetwo things, you know, collide, but, but the way that things are moving, forexample, that's something from a compliance perspective that's going tohave to be dealt with. Yeah, yeah.

Mhm. I'm Michel Cirillo And you've beenlistening to the dealer Playbook podcast. If you haven't yet, pleaseclick the subscribe button wherever you're listening right now, leave arating or review and share it with a colleague. Thanks for listening. Mhm. Mhm.

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