AM Online

‘Doing nothing is not an option for car dealers facing end of paper licence'

Barry Cooper MD Cooper Solutions

Dealers are planning on taking a customer’s word on their driving history when the paper part of the driving licence is abolished on June 8, according to Cooper Solutions.

Director of Cooper Solutions Barry Cooper is advising dealers tempted to take the easy option of asking drivers to self certify, to think again. He says: “In the past few months, we’ve spoken to more than 100 dealers about this issue and around 20% are seriously considering the option of just asking customers to sign waivers to confirm that they have clean, current driving licences. This is playing with fire and does not discharge a dealership’s duty of care towards the driver.

“We’re concerned at the number of dealers that are considering this option, although given the relatively short time they’ve been given to prepare, and the lack of credible options, I can’t blame them.

“This change to the driving licence should not be taken lightly as it fundamentally affects the way the estimated 15,000 courtesy cars and tests drives taken every day are administered. The most conservative estimate would put this figure at above five million checks every year. Putting it another way, that’s five million opportunities for dealers to expose themselves to substantial risk, should a disqualified driver take out a car and cause a fatal accident.”

Feedback from dealers who insure customers on their own motor policies suggests that up to half are considering a move to alternative cover to deal with the cost and administrative hassle created by the scrapping of the paper counterpart.

Insurers will expect dealers to carry out one of the available additional checks that replace the paper counterpart. These include, a premium rate DVLA phone line, the DVLA View My Licence and Share My Licence portals, or DVLA’s Access to Driver Data (ADD) platform.

Cooper said: “Before using the Share My Licence option, a driver will need to go through the View My Licence portal, which relies on them knowing their national insurance number, postcode and driving licence number. In reality, this presents a significant practical hurdle that will prevent dealers providing test-drives to potential customers.

“The DVLA premium rate phone line option costs dealers 51p per minute and may face unprecedented demand as it copes with the estimated 10million annual calls, compared with the current level of 2.5million. Lastly, the DVLA has developed a secure online checking option for the motor industry (ADD), however this has significant set up costs, subsequent annual charges and substantial look-up fees.

“At best, this new regime could cause minor frustration for drivers and motor dealers. At worst, it could end up landing unwary drivers and dealers with very serious fines or even a spell in prison, such is the severity of the outcome if they get it wrong.”

Click here for choose your supplier best practice and procurement insight

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Login to comment


No comments have been made yet.