Motor traders are defined by their fast paced selling environment and their equally as fast paced sales patter. Yet there are some risks that motor traders face every day that even the slickest of car salespersons couldn’t talk their way out of, and here we explain why each presents its own unique set of challenges.
Loss of stock through theft
The threat of theft is potentially one of the most serious risks to a motor trader’s business and one which needs little explanation as to just how detrimental even the loss of a single vehicle may be. What’s more such theft can come from many potential places, from staff who have access to the site right through to the criminal posing as a customer who requests a test drive but who’s only willing price point is nothing at all.
Damage of stock though accidents on test drives
Test drives are a necessary part of the purchasing process, however they are also fraught with the potential for damage, particularly as the driver is both an unknown quantity, as well as someone whom is likely unaccustomed to the vehicle that they are testing.
Potential for a dud part-exchange – mobile mechanics insurance
Whilst many think of motor traders as sometimes pulling a fast one with second hand cars, it’s not unusual for it to be the part-exchange customer who makes a quick getaway. This occurrence, where the seller shifts their problematic vehicle onwards, is down to signs of the issues that may not be immediately apparent. This may include everything from high oil consumption through to the regular lighting up of that that dreaded engine light.
Such a problem vehicle will then demand potentially expensive repairs, or the motor trader may simply decide to cut their losses and the time spent upon fixing the vehicle, and sell it on to an auction. This is a reason why mobile mechanics insurance is important.
The damage of stock by staff
For the motor trader that moves vehicles from site to site the potential for damaged vehicles is persistent, particularly as, once more, staff may not be used to the vehicles that they are driving. And even where the motor trader may be the most experienced of all, having driven practically every make and model in existence, there is still the other drivers on the roads to consider, in all their unpredictable glory.
In these newly calm financial times it can sometimes be easy to forget about just how precarious the nation’s, and indeed the world’s, financial positions were. However for the motor trader the effect of the turbulent financial times may still be being felt, as they belong to an industry that is notoriously one of the hardest hit when consumer confidence falls. For this reason many a motor trader may face a precarious financial position, and they may well be facing it every day for the next few years as sales continue to recover.
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