Test drive controls to protect your auto dealership and enhance customer safety

Different types of vehicles in a row with blue skyy

The test drive has historically been considered a dealership’s greatest selling tool. However, the test drive can also lead to numerous risks and exposures for the dealership, including theft, property damage, and bodily injury.

Below are some recommended considerations and tips for implementing a safe, secure test drive system.

Test drive procedures:

Minimize test drives until such a point where it is necessary to complete the sale. Prior to allowing a test drive, the client should be adequately pre-qualified.
Review and make a copy of the customer’s driver’s licence.
Cross-reference the driver’s licence with two other pieces of identification, such as a provincial health card, credit card, passport, or current utility bill, and if the customer drove in, a copy of the ownership on their existing vehicle.
Have the customer complete a formal test drive agreement outlining the roles, responsibilities, and expectations of the customer and the dealership.
Provide a preferred, pre-arranged test drive route.
Ideally, the salesperson should accompany the customer throughout the test drive, never releasing the key to the customer. The salesperson can complete the first drive with the customer as a passenger so options and features can be identified, followed by the customer completing the test drive with the salesperson as a passenger.
In a situation in which the salesperson cannot accompany the customer on the test drive, such as motorcycle, ATV, or snowmobile, they can follow the customer in another vehicle.
Ensure that factory installed vehicle tracking devices are activated and operational.
Install aftermarket vehicle tracking devices to the dealership’s “test drive fleet.”
Upon return of an unaccompanied test drive, the key for the test drive vehicle should be immediately obtained, and the vehicle locked and tagged to be sanitized.
- The staff member should lock the vehicle themselves with the use of the key in order to ensure the key was not switched at some point during the test drive.
- Use vehicle recovery devices, such as KCYS Locate or the TAG tracking system.

Test drive controls are important for ensuring customer safety, protecting vehicles, mitigating liability, enhancing the customer experience, evaluating vehicle performance, increasing sales conversion rates, and complying with regulations. By implementing effective controls, dealerships can create a structured and secure test drive process that benefits both the customer and the dealership.

As always, please contact your broker or Marsh Advisory representative if you have any questions or concerns.

Test drive controls to protect your auto dealership and enhance customer safety

Test drive procedures:

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