What Kind of Background Checks Do Car Dealerships Do?

Car Dealership Background Checks

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Car dealerships are often the target of fraud and theft, which can result in significant financial losses. By conducting car dealership background checks, dealerships can screen out individuals who may have a history of fraudulent behavior or theft. Additionally, background checks can reveal any past bankruptcies or financial issues that may indicate a higher risk of theft or fraud. This can help dealerships protect themselves and their customers from financial harm.

So what kind of background checks DO car dealerships do? Typically, they conduct criminal records search, driving history, credit report, and employment history. 

Here are just a few of the reasons why background checks in the automotive industry are paramount:

Protecting Customers and Employees

The safety of customers and employees is the top priority in the automotive industry. A background check can reveal any red flags in a person’s past that may indicate a risk to safety

According to a recent survey, 86% of employers found that background checks uncovered issues that may have gone unnoticed otherwise.

Reducing Liability

The automotive industry is highly regulated, and employers must comply with various laws and regulations to avoid legal issues. Failure to do so can lead to lawsuits and other legal problems. By conducting background checks, employers can reduce their liability in case of any accidents or incidents.

According to a study by the Society for Human Resource Management, only 69% of employers conduct background checks on all job candidates. By conducting a thorough background check, employers can minimize their exposure to liability and ensure that they are hiring qualified, responsible candidates.

Ensuring Quality of Work

In addition to mitigating risk, background checks can also help dealerships ensure that they are hiring qualified and trustworthy individuals who have the necessary skills and experience to provide quality service. By verifying education, work history, and other credentials, employers can make informed hiring decisions and maintain high standards of work.

According to a survey by CareerBuilder, 58% of employers have caught a lie on a resume. Which shows us that by verifying a candidate’s education, work history, and other credentials, employers can ensure that they are hiring candidates with the necessary skills and experience.


In conclusion, background checks are a vital part of the hiring process in car dealerships. By ensuring that potential employees have been thoroughly screened, dealerships can mitigate risk, reduce liability, maintain high standards of work, and create a safe and positive work environment. In a highly competitive industry, investing in background checks can help dealerships stand out as responsible and trustworthy businesses that prioritize the safety and well-being of their employees and customers.

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