Loaner Agreements – Georgia Car Law Authority

Let’s say you’re doing a repair for a customer and decide to give the customer a loaner. That loaner must be governed by a contract. The dealer should have the customer agree to a loaner agreement for that vehicle. Watch this video to learn about what needs to be in a loaner agreement and more reasons why they are important.

 

Below is a transcript of the video:

Let’s say the dealer is doing one of these goodwill repairs, or really any repair has to take the vehicle back in and decide to give the customer a loaner. That loaner must be governed. The dealer should have the customer agree to a loaner agreement for that vehicle.

Loaner agreements should identify the vehicle. It should explain how long the loaner is out for. It should also identify when the loaner is due back. I recently ran into a case where the loaner agreement did not identify when the vehicle was due back. The customer’s car was out for a couple of weeks for a pretty intricate repair. The customer got disenfranchised by the dealer and was basically not trusting that the car that they bought and spent their hard-earned money on would ever be fixed and act and drive like it was supposed toLoaner Agreements

So the dealer calls the customer and says, “your car’s ready for pick up” and the customer says, “I’m not bringing the loaner back.” A big problem, right? Certainly, the loaner is not the property of the customer. We’re going to get this situation fixed and we did. But one of the first things we looked for was the loaner agreement and whether it identified when the car is due back when the dealer notifies the customer that the customer’s vehicle is ready for pick up and that the repair is complete.

That’s really important and a loaner agreement is really important because it helps define the terms of the loaner. It’s advisable that a dealer provide a customer with a loaner agreement when they take a car out on loan and not just give the keys over and say “bring it back when we call you.” It should be in writing.

 

For more videos on the Georgia Car Law Authority series, please visit www.georgiacarlaw.com.

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