What is a Cancellation Issue Rate?

Cancellation Issue Rate is the rate at which a dealer cancels their Motorway purchases, without a validated (or, justified) Adjustment & Cancellation form.

A certain proportion of cancellations and price adjustments are justified based on the standards we set in our Adjustment & Cancellation Policy, and we use these cases to continually make our platform more accurate and rewarding for both dealers and sellers. Justified cancellations and price adjustments do not get counted in a dealer’s Cancellation Issue Rate, or CIR.

However, where a cancellation is not justified, it will contribute to a dealer’s CIR. This is calculated as the number of unjustified cancellations, divided by a dealer’s number of gross sales. So, if out of one hundred gross sales, a dealer puts through nine unjustified cancellations, their CIR would be 9%.

The CIR is always calculated over a four-week period at a time, to account for possible volatility during a short period.

As outlined in our Dealer Conduct Policy, which you can read in our FAQ What is your dealer conduct policy?, we will issue written warnings to, and then suspend if necessary, dealers who breach our CIR threshold. After a first suspension (normally of one month’s duration), they will have an opportunity to rejoin the Motorway platform. Then, if they still exceed our best practice CIR, they will be permanently prevented from purchasing stock from Motorway.

It is important to us to give both sellers and dealers a great service. We do not guarantee pricing with sellers, but make it clear that prices offered are based on their vehicles as profiled on the platform. This allows for justified cancellations and price adjustments. If a vehicle is found to be as profiled, during the inspection, then the full price should be paid out to the seller.

For more information on cancellations, see our FAQ What is Motorway’s Adjustment & Cancellation form?

If you have questions about this aspect of required dealer conduct, please get in touch with the Dealer Support Team or your Account Manager.