You can never be too cautious when it comes to claims
Getting surety bond claims is one of the major risks when running an auto dealership. Although your company might be executing its administrative and business operations diligently, claims are still possible. Training your salespeople to avoid potential pitfalls that can lead to them is essential, and can save you a lot of unnecessary trouble.
To stay away from claims, it’s important to understand how surety bonds work. Your dealership is usually required to post an auto dealer bond when getting licensed with your state authority. The bond functions as a guarantee for the state and its citizens that your dealership will follow the law. In this sense, it protects your customers.
If an affected party files a claim against you that gets proven, you are liable to compensate them up to the penal sum of the bond. Naturally, this means a huge financial setback for your business, as well as for your reputation.
Let’s look at the six most important guidelines that you need to pass on to your salespeople, so your business can stay away from unintentional violations.
1. Give space to customers
First things first: When your customers are selecting their vehicle, they need to have the mental space and enough time to make the right purchasing decision. Rushing and pressuring car buyers can be unpleasant, and is counterproductive.
Instead of embracing that common practice, it’s wiser to instruct your salespeople to show patience, even though they want to close as many sales as possible to reach their quotas. They should let customers examine all important details about the vehicle, for as long as they need. In this way, you can spare yourself the “pleasure” of frustrated buyers who are ready for a fight—and for a claim, because they are dissatisfied with the car they have been pressed to buy.
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Dealer Marketing Magazine
Author: Digital Dealer
Digital Dealer exists to help dealers and their managers sell more vehicles more profitably by creating the best live events and media in the industry.