How to Handle Vehicle Sales to “Essential” Businesses

As a result of one of Governor Andrew Cuomo’s Executive Orders, dealers are prohibited from operating their sales departments during the COVID-19 emergency. As we have reported previously, there is one exception: Dealers can sell and lease cars to an “essential” business for the duration of the crisis. 

To help dealers navigate that process, we wanted to provide you with a list of things you must consider along the way.
 

REMEMBER: THE FOLLOWING ONLY HAS TO DO WITH BUSINESSES THAT HAVE BEEN DESIGNATED AS ESSENTIAL. 

First: For the remainder of the COVID-19 crisis, you must remember to keep your showroom closed to the general public. You can only bring sales staff in and open your doors under the circumstances and in the manner described below. 

Second: If you connect with a customer, and you are not sure if they are an essential business, visit this link to see if the company is on the state’s approved list of essential businesses. 

Third: You can only go into a sales contract with a company on the list of essential businesses, not an employee of an essential business. Example:  you can sell a vehicle to a hospital during the crisis, but not one of the hospital’s doctors or nurses in their personal capacity. 

Fourth: You can close a deal and complete the paperwork with an essential business at your dealership by appointment only. 

Fifth: You can only bring in as many staff as are necessary to close that specific deal. 

Sixth: If you let an essential business representative into your dealership, you must remember to adhere to two important sets of guidelines from the NYS Department of Health. (Click on links for more information)

• The first set of guidelines instruct you how to keep your keep your workplace clean and disinfected. 
   

• The second set of guidelines instruct you how to stay healthy, including by keeping at least a 6-foot distance from other people, using hand sanitizer, and staying home if you are sick. 

Seventh: Produce and retain records that show you confirmed the customer is the kind of business on the state’s list of “essential” businesses. This includes keeping sales or lease documentation, showing the name of the essential business, in the deal jacket.

As we reported yesterday, GNYADA and the state’s other dealer associations continue to work together to get dealers a broader exemption to the Governor’s shutdown order. Our goal is to keep consumers and workers healthy while making sure consumers continue to have access to safe and reliable vehicles. 

If you have any questions about this guidance, do not hesitate to reach out to GNYADA for more information. We hope you and your loved ones are staying well during this difficult time.