Car Dealership: New Car Dealerships and Mandatory Evacuations Concept

Automotive Guide New Car Dealerships and Mandatory Evacuations Concept

By: Lance Winslow

Automotive Guide

During Hurricanes of any large magnitude all the car dealerships and show rooms are totally demolished. That generally includes much of the inventory of new and used cars. Over 80 car dealership were completely destroyed and that means about 5,500 new cars, 2,000 used cars and all the buildings too. Automakers do not guarantee these cars on the franchised dealership lots. Some are insured thru the flooring cost loan arrangement for inventory or require mandatory insurance. Most of the Gulf Coast Auto Dealerships did not have enough insurance for this level of loss, during Hurricane Katrina. Many did not have such insurance for those levels of losses because of cost and/or underwriters did not wish to cover that eventuality. In the aftermath and in hindsight; if you owned an insurance company would you; heck no!?

Since this is a problem and since so many dealerships need to save all those cars from the storm and since these cars are mobile and since there were people who were told they needed mandatory evacuation, since you can put five people into a car; I think you see where I am going with this?

Have all those who are told to evacuate take a car with them and bring it back after the storm. Have them check it out like a library card with a full tank of gas? Why, we obviously because it will be destroyed if left and if it is submerged will probably contaminate the surrounding area with chemicals and fuel. It is a win/win situation. Now then some attorney will say you cannot do that because if you do, someone might crash the car and sue your dealership and you will lose your dealership and the same amount of money anyways. I say to that comment, go ahead and shoot the attorney who says that in the face of common sense, suspend drivers license and insurance laws for evacuees and do not allow such lawsuits during natural disaster evacuations. Sounds to simple? It is.

Furthermore the costs associated with caring for people who cannot evacuate or rescuing them, or killing them is a much higher cost than a few miles on a car. Besides all those flooded cars will be sold at an auto auction and many buyers we not be told that they were completely flooded and damaged. Either the used car dealerships who buy them will not be told or the end buyer will be left in the dark. I want you to think on this for me.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

Automotive Guide Tag : Car Dealership   Hurricane Katrina   Losses

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