The Dealer Playbook
The Dealer Playbook

Episode · 7 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 oh there's Carbonneau there's room, there's I mean in Canada there's Canada drives auto trader and they're all doing this similar thing, deliver vehicle to home, buy it online, etcetera. What do you see looking down the road as some of the new issues perhaps or evolved risk issues that dealers 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 when I go in and say how many sales are happening at customers houses and in the States, there is a law called the Home Solicitation Act, which originally was, I think, I think the history...

...behind that is a vacuum cleaner salesman who would bring on your ring, your doorbell, throw dirt on your carpet and then, you know, vacuum it up, right? And so people would buy vacuums and and they, you know, they got sold vacuums for way over price and then the fence came in and said, we can't can't do this anymore, stop throwing dirt on people's carpets, they don't like it anymore, right? But with the home solicit 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, of course that's a lawyer and I'm just picturing a group of lawyers sitting there 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're from the Bronx or whatever, but that's right. But the hope that the home solicitation act says that if you do...

...any selling at someone's home, that you're required to follow the act. Now, the worst part of this is if you don't follow the act and the act is you have to sign a piece of paper giving them three days to bring the car back or whatever. You know you're buying. But if you do any negotiation or any selling at their house, then you're required, the way I read it and I'm not a lawyer, but I'm a compliance guy. So I read it is, you have to, you have to follow it. If you don't follow it, the penalties are extraordinary. The penalties are that at any time there's no time frame built into the code. So a customer could drive a car for four years and then come back to the dealer and say, uh, you didn't follow the home solicitation act. And I'd like all my money back. And the way that it reads is the dealer would have to give all the money back. That's the way it reads to me. So if you're doing any selling... a customer's house and I don't know what carbon a or room or doing about this. Um, but if they're not following the home solicitation act and they're listening, they can hire me and I'm going to tell them they should follow the home solicitation actors what's the big deal? I mean, the big deal is that you have a three day right of rescission. A lot of these companies are giving people seven days to back out anyway. Right? Carmax have, I don't remember what their their most recent test drive. I think you test drive for 24 hours or seven days. I don't remember. But this is just not a big deal and they shy away from it because it's compliance needs sales and some dealers get a little upset when those two things, you know, collide, but, but the way that things are moving, for example, that's something from a compliance perspective that's going to have to be dealt with. Yeah, yeah.

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

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