Office in a Car Dealership

I have my own office and do have direct binding authority. I know for a fact he sells that many cars, so that part I am not worried about. He is also offering a very nice office, internet, desks etc...
I just have to have someone there till 9pm, like some of you said and weekends as well. He is a used car dealer, but only higher end cars 2-3 years old.
WHat has me little concerned are the chargebacks, but i'm guessing i might be able to cross sell some of the clients as well.
 
I used to have a company car, which I could also use for personal use. The company paid the insurance, not me.

I didn't have my own insurance for years.... (or a gas bill).

Changed jobs, went into a dealership, bought the car, hadn't really thought about the insurance till that moment....

The dealer referred me somewhere, got me off the lot, but they were to expensive. I switched on the following Monday. Point being, price does matter, but not necessarily right then.

Of course, this was a while back, before I did insurance.... but a very true story.

Dan
 
Ask yourself what kind of people go into a car dealership without any car insurance.. Is this really how you want to build your book?


This is something to consider. A decent part of my book is non standard and these tend to be clients who did not have prior insurance. I am fortunate to have many direct appointments, so we have options.

Make sure that younare complying with you state rules regarding referral fees.
 
I have personally done this but first thing's first...

IT IS ILLEGAL TO SHARE COMMISSIONS WITH SOMEONE WHO IS NOT LICENSED TO SELL INSURANCE.

Now, even if you were going to move forward...

The only reason someone would generally ask you to do this for them is in a buy-here/pay-here dealership. DON'T DO IT. #1 The lapse ratio is ridiculous. #2 His offer makes no sense. He wants you to sit in his dealership but wants 50% of your money? Aren't you doing HIM a favor? AND...#3 If you do give him 50%, what happens when the policy cancels, are you going to bill him for the portion of the commission he did not earn?? (Again remembering that it's illegal to share your commission with him and you could be stripped of your license if you do.)

Also, if this is a buy-here/pay-here place, the types of clients you'll be working with will more than likely drive you crazy. Sure, sometimes bad things happen to good people but in general, they are irresponsible as he!! They will cancel for NP and forever be asking you to reinstate them. Not only that, (at least in my experience), they are so under-educated that you can barely get them to understand you, let alone their insurance policy. Oh, and you better get plenty of waivers around because the ONE coverage they swear they don't need (b/c they're too cheap to pay for it), they'll complain up a storm that they asked for it and you just never put it on the policy.

I could really go on and on about the negatives. In a nutshell I found that it was more hassle than help.

And P.S...please remember that that guy is SERIOUSLY trying to take advantage of you (convincing you to do what he wants is his job - he's a CAR salesman)!
 
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Moneymaker - it appears we have had the exact same experience dealing with this.

My agency was at one point working with ~10-12 buy here pay here dealerships, weve since cut that down to 2 that are local, but it has been a complete nightmare.

Retention rates are very low, the only saving grace is that we've been charging a policy fee for all business from these places. So if they do cancel, at least you've made $50 for writing the policy for them inititally.
 
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