We use a bailment form when a customer takes a vehicle that they haven't contracted on for more than a "test drive" or if we issue a service loaner. It makes the customer and his insurance liable for damages they cause to others and our vehicle and If you need an example google bailment form and you should get some. if you want a copy of ours let me know.
Thank you for the generous offer. We would love to have a copy of your document. Would you prefer to send it in an email, by fax, or by snail mail. Out fax is being repaired, thus, it will be lot of service until Monday. Our email is email@example.com, our fax number is 708-246-9783, and our address is:
Clay Co. A. M. C.
123-104 Acacia Circle
Indian Head Park
I would like to take a moment to wish you and your loved one's all of God's blessings through the holidays and the New Year.
My main dealer group uses a "permission to drive" form whenever a customer drives - without a salesperson - any vehicle that is for sale (new or used which carries a sticker in the window). The customer is informed that their insurance is going to cover any damages. All customers sign the form.
The problem is when you have to try and collect for said damages. That customer is never going to come back into your dealership ever. For that one in a thousand incident, I think it's best to just eat the body shop bill.
It is a great idea to use a bailment for every test drive, but if you have an excessive situation, you need to look at who you are putting out in your cars.
We don't allow test drives without a sales person in the car unless it's one of our existing customers (BHPH) and we have all their info on file. You are right about excessive situations. "pitching keys" should get sales people fired. I had 1 situation in the mid 90's where keys were pitched to a kid. He literally "bumped" a car load of folks (no damage) that eventually cost the dealership $64,000 for each occupant (4) plus legal fees. We make it clear with the bailment form and request ins copies if we do not have an up to date one. If not.....no drive. We have collected damages 3 times. Zurich Insurance has approved our bailment form.
Hi William- this looks like a great form. We deal primarily with second chance customers who generally dont have insurance until they purchase the car from us. In your form, clause one stipulates that they agree that they have insurance. Just curious, how do you handle folks that do not currently have insurance for the test drive? Also, does not having insurance invalidate the other clauses in the form? The other info is great and wouldnt want to loose that. Thanks for your guidance.
Gene- Very interesting that you use a bailment agreement for the service loaner. I understand it is approved by Zurich and would like to take you up on seeing your document. Additionally, are there other measures that you take to protect your dealership when providing a loaner? We provide loaners as well, but I always feel exposed!
Loaners is one thing, delivery with bailment another....but test drives? Most of our second chance clients dont have insurance prior to the purchase so how are you handling test drives? Thanks so much. Our physical address is Central Auto Sales 2677 E. College Ave. Decatur, Ga. 30030 or fax 404-377-4763 and can be reached at 404-377-2649. Thanks so much I really appreciate it.
Never EVER do we allow a new customer to test drive without a salesman in the car. PERIOD. That is bad sales management as well as a danger. If we have an existing customer that wants to test drive and they are in good standing we will let them drive without someone. I'll send you the bailment when I get back in.
Agreed - good standing operational proceedure. Therefor, all test drives with salesman are on the dealership gerneral insurance coverages. Just seemed I read in a previous response that someone required insurance for test drives. At any rate, thanks so much for forwarding the Zurich form- I really appreciate it.