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CAR-1

IARA’s Certified Automotive Remarketer Program: CAR-1

UNIT:  Remarketing Channels

COURSE:  CAR-1 Selling to Lessee/Driver/Employee

Course Purpose

At the completing this course, the CAR candidate will be able to:

1.    Describe:

•    Issues involved in remarketing vehicles upstream to drivers and employees.
•    Advantages and disadvantages of the remarketing channel.

2.    Describe:

•    Driver Sales – Should fixed or condition-based pricing be used for drivers or employees? Should an inspection be required before a driver is given the price/opportunity to purchase a vehicle scheduled for turn-in? In the upstream process, should the driver have exclusive right to purchase a turn-in vehicle before fellow employees? If there is a period of exclusivity, how long should it last? What repairs/maintenance should be allowed on a vehicle that is to be offered to a driver? How does a company deal with unreported vehicle damage revealed after an upstream inspection?

•    Employee Sales – At what point in the upstream process, and for what duration, should a vehicle be offered to the greater body of employees? What issues must be considered in pricing vehicles to employees versus current drivers? What special requirements are required to offer vehicles to company employees, as opposed to a sale to a current driver/operator? What are the proper ways to offer the availability of company-owned or leased vehicles to the greater body of employees? What precautions must be taken before vehicles are made available? How can a company or lessor leverage the Web and interactive marketing to increase sales penetration?

•    Warranties and Product Liability – In selling vehicles to drivers and employees, what warranties are mandated and/or appropriate? How can a company mitigate the liability normally vehicle condition? Does the company have liability for accidents if the vehicle is defective? Is the company liable to repair or replace the vehicle if the vehicle is improperly described? Does the seller assume used-vehicle dealer liability in the state in which the vehicle is sold?

•    Finance and Insurance – In selling vehicles to retail buyers, albeit company drivers and employees, what role should offering dealer peripheral products (financing, service contacts, etc.) play? What liability does the company or lessor assume when selling or recommending third-party peripheral products? What agent-versus-principal issues in a transaction are invoked by driver and employee sales? Can the employer company sell vehicles to its drivers or employees directly, or must the employer use a corporate lessor and/or an intermediary licensed dealer?

3.    Explain the strategies organizations employ in relation to the percentage of sales through this channel.
4.    Recognize how market conditions and residual values may impact channel selection.
5.    Identify strategies to benchmark sales results compared to other channels.

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