Automakers want Ontario showrooms opened to deal with expiring leases

(Photo by Mark Renders/Getty Images)
Between 35,000 and 40,000 leased vehicles were expected to return to the Canadian marketplace each month between March and June, according to an estimate by Canadian Black Book. Those lease returns are made complicated by the coronavirus pandemic, especially in Ontario, which has shut down dealership showrooms as part of its effort to slow the spread of the virus.
SHOWROOMS REMAIN CLOSED
Tim Reuss, president of the Canadian Automobile Dealers Association (CADA), said dealers should focus on boosting online sales when public health experts recommend showroom closures.
But, Romano urged the province to reconsider the showroom shutdown, saying the ability to close a transaction in-store would be crucial in some situations.
Keeping showrooms open on an appointment-only basis, perhaps limited to only one customer at a time who would speak to a salesperson behind plexiglass, would help dealerships provide vehicles to essential workers, he argued. He said he envisioned much of the paperwork being handled online, with the in-store experience limited to collecting signatures and identification and getting a proper trade-in appraisal, if necessary.
“We’re not going to sell enough cars to make a difference economically for us, but we are going to take care of those customers that are calling us every day and asking, ‘What do I do?’
“I don’t know what to do for them, and I think forcing dealers to send their salespeople to homes is not a safe and sound option right now, unless it’s someone they know,” Romano said in an interview with Automotive News Canada.
INFLUX OF VEHICLES
Easing closure rules could also help dealers manage an influx of vehicles coming off lease, he said. While many customers might opt to have their leases temporarily extended due to the crisis, some would prefer not to extend because they might be recently unemployed or no longer need a vehicle.
David Adams, CEO of the Global Automakers of Canada (GAC), said many of the association’s members would support such a measure in Ontario, provided dealerships move with “an abundance of caution” and make health their No. 1 priority. He said the GAC, which represents 15 automakers’ Canadian operations including Hyundai, Honda, Toyota, Volkswagen and Nissan, had yet to have discussions with the provincial government on the topic.
“Dealers can already sell vehicles on a remote basis, but there are some challenges sometimes with signatures and certification and that sort of thing. And that’s the sort of thing an in-person set up would address,” Adams said.
Romano argued that allow customers into a controlled environment, such as a well-scrubbed dealership with appropriate social distancing measures in place, would be safer than having employees drive to different locations to drop off new vehicles.
Category: AUTO MANUFACTURER NEWS