Pub. 2 Issue 1

VIRGINIA AUTO DEALER www.vada.com 18 T he auto industry recently experienced unprecedent- ed change in the span of a few months due to the coronavirus pandemic. The impact has been felt by OEMs, dealers, and their customers. Although online sales are commonplace for purchasing certain consumer goods, even groceries, vehicle transactions have historical- ly not kept pace with other digitally retailed goods. Visits to dealership showrooms to consummate deals remains the norm. This is partially due to the need for original, or “wet”, signatures being required for certain documents that com- prise the entire vehicle sales transaction (e.g., title, odometer, secure POA, tax forms). With the onset of COVID-19, however, and the related shut- down orders issued by state and local governments, dealers became more inventive using the internet, their websites and social media to drive online vehicle sales. Online sales have continued to pick up traction even in the wake of stay-at- home requirements being lifted. Customers favor seamless transactions, including pricing transparency and the efficient use of their time. The area of online vehicle sales is none- theless fraught with challenges. Additionally, companies like Tesla, Carvana and Vroom, have made a significant foray into the realm of online digital vehicle sales competing with tra- ditional dealers and manufacturers for customers. To address some of these challenges and meet customer expectations, it is important at a minimum for dealerships that engage in online vehicle sales to develop and implement a set of best practices. Dealerships that engage in online vehicle sales should ensure their understanding about certain aspects of the transaction, such as off-premises delivery, to avoid violating the FTC and Illinois “cooling-off ” laws. Specifically, conduct that rises to the level of solicitation, negotiation and sale of the vehicle at Online Vehicle Sales And Digital Retail Compliance Considerations E-Commerce For Dealerships: