Recently, we’ve seen lots of OEMs promoting home delivery, and while I don’t deny that it’s something that we need to confront, there’s a lot more to it than just hiring a delivery driver.
– OEM Dealer Agreements – Many of these documents specify that your physical location is your only approved place of business.
– State Laws – Most States require dealers to deliver vehicles at the address they are approved to operate from.
– Insurance – Many policies are written with distance limitations. A customer’s home address might be outside of that radius.
– Lender requirements – Many banks and credit unions have restrictions on where paperwork should be executed. Moving this process of site can also lead to cash handling issues, and not having full documentation of the sales process (i.e. CCTV).
– Federal Legislation – Home delivery could trigger the 1972 Cooling-Off Rule. Originally designed to curb door-to-door sales practices, it requires that some $25+ transactions are fully cancelable within 72 hours. That’s just long enough to take a nice weekend trip.
How are you adjusting to the current crisis?
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