Page 6 - MIADA-Q3 2023

Shortcuts

AND

Compliance

ARE NOT FRIENDS

By Gil Van Over, Executive Director of Automotive Compliance Education

Once upon a time, I was part of corporate The form in the file either reflects the free Don’t let process shortcuts
America while working for one of the price (blank or N/A) or the wrong price, or
captives. While in corporate America, I the correct price that has been handwritten short-circuit all the hard
had an accident with my right hand, which in. Oftentimes, when the price is corrected, work your dealer has put in
ended up requiring a cast. I couldn’t grab the customer has not initialed the change. to make their dealership
the steering wheel with my right hand, my This begs the question, exactly what does the success it is today.
putter grip was abysmal, and I couldn’t the customer’s copy show?
write or sign my name.
Hopefully, the customer’s copy is consistent or F&I managers forget to have the customer
As a supervisor in my branch office, I was with the dealer’s copy, otherwise there could sign the gap enrollment form.
responsible for completing a checklist on be some explaining to do if the customer
every repossessed account to ensure all the ever decides to file a complaint or litigation Almost every dealership employee
required steps from repossession to disposal and the file is requested in discovery. understands that forging a customer’s signature
had been completed. to a form is a crime. Others rationalize that the
I had to initial a box by each completed Taking the shortcut to not having the DMS customer did agree or knew that they agreed
to the privacy policy or signed a menu and
task to properly finish the checklist. Since I corrected or programmed or not properly contract agreeing to purchase GAP, so it is all
couldn’t drive, putt, or write, I just assumed loading the deal is potentially putting the right to sign their name.
my boss would understand if I marked a validity of the transaction at risk.
simple checkmark in each box. I evidently Forging a customer’s name is never an
didn’t know my boss very well. “Shortcuts Used Car Buyer’s Guide Disclosure acceptable shortcut.
are not acceptable!” he bellowed when he The FTC Used Car Rule is very specific
reviewed the first of a stack of repossessions about the language that must be used to Not Reviewing the Buyer’s Order/RISC
I had completed. properly disclose any remaining warranty. During your next managers sales meeting,
Most dealers have a solid process to ask how many of your managers have
I assume shortcuts develop in many properly make this disclosure. For example, read and understand each section, front
industries, companies, or processes. Some the Used Car Rule says that using shorthand and back, of the buyer’s order, the retail
of the shortcuts I witness in dealerships terms such as “factory warranty remaining” installment sales contract, and the lease
create potential compliance concerns. As a is not a sufficient disclosure. The vendors agreement. After all, they are likely signing
trusted advisor to your dealer clients, you who manage the buyer’s guide process for these documents on behalf of the dealership.
should be on the lookout for these shortcuts dealers generally have the correct, safe- Isn’t it reasonable to expect that they have
and discuss the potential risk with them. harbor language. read and understand all the provisions they
are asking customers to agree to?
Handwriting Product The process falls apart when a used vehicle
Pricing In a perfect world, the customer is sold before the vendor has an opportunity Sometimes a shortcut is just being lazy
signs at least three documents disclosing to put a correct buyer’s guide on the instead of understanding the very basics of
the acceptance and pricing of voluntary vehicle. Sometimes it falls apart when the your job. Don’t let process shortcuts short-
protection products: menu, buyer’s order salesperson gets lazy and handwrites a circuit all the hard work your dealer has put
(or PCD in California), RISC/lease, and buyer’s guide instead of taking the guide in to make it the success it is today.
enrollment form. There are times when off of the vehicle or printing one from the
the product price does not print on the dealer’s software. Going the shortcut route Continued good health and good selling. n
enrollment form, instead it is either left thinking you are saving time leads to non-
blank or prints as “N/A.” Other times, the compliance with a federal law. Gil Van Over is the executive director of Au-
dealer management system (DMS) picks tomotive Compliance Education (ACE), the
up the wrong price, perhaps printing the Signing Customer Names founder and president of gvo3 & Associates,
price of the vehicle service contract on the People get busy. Salespeople fail to get the and author of “Automotive Compliance in a
maintenance form. customer’s signature on the privacy notice, Digital World.” Email him at gvo@bobit.com.
6 | MSIADA MISSISSIPPI DEALER Q3 2023