Crashes during test drives are costing motor dealers more than £8,000 a year on average.
That’s the key finding from research carried out by commercial insurer NFU Mutual.
It found that 30% of surveyed motor trade businesses have seen damage caused to their vehicles during customer test drives with one in ten suffering up to £50,000 worth of damage.
While trying out the product before committing to purchase is often a crucial part of making a sale, test drives are clearly proving to be a pricey gamble for many within the industry.
Three in 10 motor trade businesses said the issue has cost them anywhere between £5,000 and £10,000 over the last 12 months, while almost one in 10 (9%) even said the cost of test drive damage had been up to £50,000. The average figure came out at £8,185.
Zoe Knight, head of commercial at NFU Mutual, said: “Our research has found a large number of motor trade businesses are having to spend or claim for thousands of pounds arising from incidents happening during those test drives.
Test drives came out as the third most common answer from businesses asked how damage had been caused to any vehicles they owned. Criminals attempting break-ins (44%) and vandalism (42%) were the only issues that were higher.
Zoe added: “Our figures show how expensive test drives can prove to be – with an average cost of £8,000 per incident.
“We’ve heard examples of some vehicles being written off and instances where businesses have suffered 10 crashes a year, so it is vital businesses check their cover to feel safe and secure.”