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Things to look for when reviewing and approving employee deals.

By Eduardo Hernandez

One of the controls in the sales department that every dealership should have and enforce is management review and signoff on employee deals. Although there should be a certain level of trust in a dealership, it never hurts to “cross your t’s and dot your i’s.”

Some of the items that we recommend reviewing include:

  • Make sure all required deal documents are present and signed by the employee.
  • Ensure the deal is in compliance with any rules the dealership or group has for employee deals.
  • Look over the history of the vehicle being purchased.
    • See if the ACV appears reasonable and if there were any recent write-downs.
    • Check to see if the employee appraised the vehicle they are attempting to purchase.
  • Confirm the vehicle qualifies for all the incentives considered in the deal.
  • If a vehicle is being traded-in, verify the ACV is appropriate.
    • Make sure the employee did not appraise their own trade-in
  • Check for any money that will be owed to the employee and make sure it is appropriate.
  • Check that the lien payoff amount is accurate.
    • The employee should be responsible for any additional amounts above the amount set up for their lien payoff if it was inaccurate.
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