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Test Drive Policy

Purpose:
The purpose of this Test Drive Policy is to establish guidelines for conducting test drives at [Dealership Name], ensuring customer safety, protecting dealership assets, and complying with legal and insurance requirements.

1. Scope

This policy applies to all employees involved in the test drive process, including sales associates and managers, as well as customers or potential buyers participating in test drives.

2. Policy Statement

[Dealership Name] is committed to providing a safe, controlled, and professional environment for vehicle test drives. All test drives must follow the procedures outlined in this policy to protect both the dealership and its customers.

3. Requirements for Customers

3.1 Customer Eligibility

Before a test drive, customers must:

  • Be at least 18 years old (or as required by local laws).
  • Possess a valid driver’s license.
  • Agree to follow all applicable traffic laws during the test drive.

3.2 Identification

  • Customers must provide their valid driver’s license for verification.
  • A photocopy or digital scan of the driver’s license may be taken and stored securely for recordkeeping.

3.3 Agreement to Terms

  • Customers must sign a Test Drive Agreement Form acknowledging:
    • Responsibility for traffic violations or damages caused by their actions during the test drive.
    • Adherence to dealership and legal requirements during the test drive.

4. Procedures for Test Drives

4.1 Pre-Test Drive

  1. Vehicle Inspection:

    • Sales associates must inspect the vehicle to ensure it is in proper working condition.
    • Document any pre-existing damage to avoid disputes post-test drive.

  2. Route Planning:

    • Provide the customer with a pre-approved test drive route.
    • Limit the duration and distance of the test drive to [Insert Duration/Distance].

  3. Safety Briefing:

    • Explain the vehicle’s features and controls before the test drive begins.
    • Emphasize the importance of following traffic laws and speed limits.

4.2 During the Test Drive

  • A dealership employee must accompany the customer unless otherwise approved by management.
  • Monitor the customer’s driving behavior and ensure compliance with the planned route.
  • Address any questions or concerns the customer has about the vehicle during the drive.

4.3 Post-Test Drive

  1. Vehicle Inspection:

    • Reinspect the vehicle for any new damage or irregularities.
    • Document findings and discuss any concerns with the customer.

  2. Customer Feedback:

    • Engage with the customer to gather their impressions of the vehicle and address any follow-up questions.

  3. Document Return:

    • Return the customer’s driver’s license after the test drive is complete.

5. Prohibited Activities

Customers and employees must not:

  • Conduct test drives without verifying and documenting customer eligibility.
  • Allow customers to take vehicles on unauthorized routes.
  • Permit unaccompanied test drives without management approval.
  • Use test drives for non-business-related purposes.

6. Insurance and Liability

  • Dealership Coverage:
    • Test drives are covered under the dealership’s insurance policy, subject to its terms and conditions.
  • Customer Liability:
    • Customers may be held responsible for damages caused by reckless or negligent driving.

7. Employee Responsibilities

  • Employees are responsible for ensuring compliance with this policy and reporting any violations or incidents immediately to management.
  • Employees must not allow test drives if they suspect the customer is under the influence of drugs or alcohol.

8. Incident Reporting

  • Any accidents, injuries, or traffic violations during a test drive must be reported immediately to the Sales Manager or Compliance Officer.
  • Employees must document the incident in detail, including:
    • Time and location of the incident.
    • Description of events.
    • Photos and witness statements, if applicable.

9. Monitoring and Auditing

  • Conduct periodic audits to ensure test drive policies and procedures are followed.
  • Review incident reports and customer feedback to identify areas for improvement.

10. Policy Updates

This policy will be reviewed annually and updated as necessary to reflect changes in legal requirements, insurance policies, or dealership practices.

Acknowledgment
I acknowledge that I have read and understand the Test Drive Policy and agree to comply with its provisions.

Customer Signature: ___________________________
Date: ___________________________

Employee Signature: ___________________________
Date: ___________________________

This policy ensures the safety of customers and dealership assets while providing a positive test drive experience. Let me know if you need a Test Drive Agreement Form template!