What is a Cancellation Issue Rate?

Cancellation Issue Rate (CIR) 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 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.

For example, if a dealer has 9 unjustified cancellations out of 100 gross sales, their CIR would be 9%.

How often is the CIR calculated?

The CIR is always calculated over a 4 week period at a time, to account for possible volatility during a short period.

What if the CIR threshold is breached?

  • We will issue written warnings to, and then suspend if necessary, dealers who breach our CIR threshold
  • After a first suspension (normally of 1 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.

Please read more about this in our FAQ What is your dealer conduct policy?

Important information

  • 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.