Starting off the year, the compliance landscape for auto dealerships includes both regulatory and enforcement shifts as well as some important best practices aimed at fraud prevention. As Robert Newman, Director of Performance Management and an auto retail compliance specialist at Cox Automotive says, “Compliance isn’t just about checking a box—it’s about building a foundation of trust and transparency that supports long-term success.”  

Dealers need practical, actionable strategies to protect their business and their customers, ensuring confidence and reliability in an increasingly digital and regulated landscape. With that in mind, here are some of the key trends you should take into consideration for deal compliance this year: 

1. Auto Financing Scrutiny 

The Consumer Financial Protection Bureau (CFPB) announced plans to increase its monitoring of auto financing practices into 2025, focusing on unwanted add-on products and hidden fees, deceptive advertising, erroneous repossessions, improper loan servicing, and inaccurate reports to credit reporting companies.   

What You Can Do: Be sure to review the CFPB’s recent Supervisory Highlights for specific examples of auto dealer practices that regulators seek to discourage and include rules against them in your compliance program. CFPB regulators will be paying special attention to parts of the finance process like unwanted add-on products (such as payment insurance and paint protection), inconsistent contract language, improper repossessions, inaccurate reporting to credit companies, and more. 

2. Consumer Protection  

Barring any additional legal challenges, the finalized CARS (Combating Auto Retail Scams) Rule from the Federal Trade Commission (FTC) is set to take effect in late 2025. This legislation is also designed to protect consumers from unfair and deceptive practices with a focus on add-on products, vehicle pricing and advertising, and hidden junk fees. 

What You Can Do: Prioritize compliance measures including consistent disclosures and consumer notices to protect consumers from unfair and deceptive practices. Recent examples of these practices enforced by the FTC include bogus recall notices sent to customers, inflated consumer income information on financing applications, and discrimination against car buyers based on ethnicity in the form of higher financing markup rates.  

3. Privacy and Data Security 

Federal regulators and at least twenty states—including California, Colorado, Connecticut, Delaware, Florida, Indiana, Iowa, Kentucky, Maryland, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, Oregon, Rhode Island, Tennessee, Texas, Utah, and Virginia—have enacted new data privacy and security laws. Several other states are considering similar legislation. 

What You Can Do: Make sure you are protecting your dealership, employees, and customers from the rising number of data and other security breaches through appropriate technology and training. Familiarize yourself with your state’s privacy regulations because they can vary from one state to the next. 

4. Fraud Prevention 

Fraud accounted for $7.9 billion in losses for the auto lending industry in 2023 according to Point Predictive. Sophisticated exploits such as synthetic identity fraud represent a growing percentage of this criminal activity. 

What You Can Do: Make sure your compliance processes and staff training reflect this growing risk. Don’t hesitate to add ID verification steps such as out of wallet questions whenever there’s uncertainty—and consider using compliance tools for ID verification  such as red flag alerts and OFAC checks, as well as fraud detection technology designed to detect ID fraud or synthetic ID fraud attempts. 

5. Building and Executing Your Compliance Program 

Every dealership needs a robust compliance program that should include appropriate resource allocation, training, monitoring, assessments, updates, oversight, and disciplinary measures.  

What You Can Do: To make sure your program is comprehensive, be sure work with your legal counsel to review enforcement actions, reports, and updates issued by federal and state regulators to develop policies that will help you avoid unlawful and discouraged practices.  

Take Charge of Compliance in 2025 

Learn more about the latest compliance trends and get a handy reference all year long when you download the free Dealertrack Compliance Guide.  

To get some useful compliance tips at a glance, download our Best Practices for Compliance at Every Stage of the Deal infographic. 

If you don’t have Dealertrack Compliance to safeguard your deals, schedule a demo with a compliance specialist today. 

Disclaimer: This is not meant as legal advice, and we do not purport to provide any legal or regulatory analysis. Consult with your attorney for any legal, regulatory, or compliance questions you may have. 

Featured Guest: Nancy Dunham, Principal Analyst, Retail at WardsAutomotive gives her thoughts on the key predictions and trends for 2025, sharing what she believes dealers, as well as the industry as a whole, should be focused on in the coming year in order to not only prepare, but to be a step ahead and plan for the shifts and changes bound to happen in a post-election cycle.

Listen or Watch to this episode to hear more about the following hot topics covered in the episode:

• Predictions for 2025: The automotive market is expected to see growth in new, used, and wholesale vehicle sales. Dealers should focus on value models and certified pre-owned vehicles to attract budget-conscious consumers.
• EV Mandates and Dealer Challenges: Dealers are struggling with the current EV mandates due to insufficient infrastructure and consumer education. Crucial items are outlined for dealers to align their offerings with consumer demands and educate them about EV benefits.
• Vehicle Affordability: Affordability remains a significant concern. Hear recommendations on why Dealers should partner with lenders and use tools to help consumers understand financing options and insurance costs, emphasizing education to make vehicles more accessible.
• Consumer Satisfaction and Omni-Channel Retailing: Personalization, inventory incentives, and omni-channel retailing are key drivers of improved customer satisfaction. Dealers need to cater to diverse consumer preferences and enhance their online and in-store strategies.
• Staff Education and Technology: Why you should be educating dealership staff on the benefits of technology and AI, and the ways it can improve customer interactions and sales processes. Dealers should use technology to enhance, not replace, the human element in customer service.

ABOUT OUR GUEST:
Nancy Dunham
Principal Analyst, Retail, WardsAutomotive
Nancy Dunham is an automotive journalist with WardsAuto, serving as principal analyst for retail. Her experience includes extensive work as a managing editor, section editor, breaking news editor and public speaker. She has had pieces published in Automotive News, NADA publication, Bobit Publications, CARFAX, and US News & World.

TIME STAMPS:
0:00 – 1:00
Introduction
Jade Terreberry introduces the podcast and the guest, Nancy Dunham, Principal Analyst of Retail for Ward Automotive.

1:00 – 2:14
Guest Introduction
Nancy Dunham is introduced, and she expresses her admiration for Cox Automotive and Jonathan Smoke.

2:14 – 3:01
Post-Election Cycle
Discussion on the impact of the post-election cycle on the automotive industry, focusing on EV mandates and dealer challenges.

3:01 – 5:10
EV Mandates and Dealer Challenges
Nancy highlights the difficulties dealers face with EV mandates and the importance of infrastructure and consumer education.

5:10 – 7:06
EV Sales and Consumer Sentiment
Jade and Nancy discuss the importance of dealership staff being prepared to sell EVs and the impact of consumer sentiment on EV sales.

7:06 – 8:45
Vehicle Affordability
Nancy talks about the ongoing issue of vehicle affordability and the strategies dealers can use to address these challenges.

8:45 – 9:21
New and Used Car Sales Predictions
Predictions for new and used car sales in 2025, emphasizing the importance of education and partnership with focus.

9:21 – 11:46
Ownership Benefits and Incentives
Discussion on the importance of educating consumers about ownership benefits and available incentives.

11:46 – 12:57
EV Market Growth
Predictions for modest growth in the EV market and the importance of offering a balanced mix of vehicles.

12:57 – 14:21
Inventory Mix and Sourcing
The significance of maintaining a diverse inventory mix and sourcing high-demand vehicles.

14:21 – 15:52
Consumer Satisfaction and Omni-Channel Retailing
The rise in consumer satisfaction driven by personalization, inventory incentives, and omni-channel retailing capabilities.

15:52 – 18:03
Technology and Dealer Staff Education
The importance of using technology to enhance the dealership experience and educating staff on its benefits.

18:03 – 19:50
AI and Automation
How AI and automation can help dealers do more with the same resources and improve consumer trust and satisfaction.

19:50 – 21:25
Selling to Multiple Generations
The need for dealers to cater to five distinct generations of consumers and the importance of diverse communication strategies.

21:25 – 23:04
Top Advice for Dealers
Nancy’s top advice for dealers: Educate staff to treat consumers as valued customers and leverage community engagement.

23:04 – 24:43
Closing Remarks
Jade wraps up the episode.

Featured Guest: Jim Fitzpatrick, Co-Founder and CEO of CBT News discusses the key predictions and trends starting off the year and weighs in on how he believes dealers both big and small should prepare including what actions to take in order to have continued success, capture more profitability and identify additional opportunities on the road ahead as we move past the election and into an ever evolving market for both the automotive industry and our nation.

A Dealer Management System (DMS) is more than a tool—it’s the backbone of your car dealership’s operations. With the right DMS in place, automotive businesses can streamline workflows, improve efficiency across departments, and boost profitability. However, selecting the best DMS for your dealership isn’t an easy decision. With so many features, vendors, and integration possibilities, the choice can feel overwhelming.  

This guide will walk you through everything you need to know to find the perfect solution for your business needs. From identifying your requirements to testing and finalizing a decision, read on to ensure you’re making an informed and strategic investment for your dealership. 

Included in this guide: 

What is a Dealer Management System?  

5 Steps for Selecting the Right DMS  

6 Key Factors to Consider when Choosing a DMS 

Finalizing Your Decision 

What is a Dealer Management System?  

Simply put, a Dealer Management System (DMS) is a software platform that integrates and runs your dealership’s core functions. From managing inventory and sales to streamlining service operations, accounting, and customer relationships, a DMS centralizes and automates key processes. This allows teams to work collaboratively with real-time data, leading to greater efficiency and enhanced customer satisfaction.  

5 Steps for Selecting the Right DMS  

When it comes to choosing car dealership management software, careful planning and research are essential. Follow these five steps to find your ideal DMS.  

Step 1: Identify Your Dealership’s Needs  

Every dealership operates differently. Start by conducting an internal assessment that identifies workflows or tasks slowing your business down. Consider the needs of each department, including sales, service, parts, and accounting. For example: 

• Your sales team may need a lead-tracking module.  

• Your service department may rely on technician scheduling tools.  

• Your accounting team might require robust financial reporting.  

Aligning the DMS with your goals will ensure your investment directly supports operations across the dealership.  

Step 2: Research Vendors  

Not all DMS solutions are built the same. Take time to compare key providers, their features, pricing models, and overall reputations.  

• Look at online reviews and testimonials. Are other dealerships happy with this provider?  

• Research vendors with experience in the automotive industry. They are more likely to anticipate your specific operational challenges.  

• Prioritize proven reliability, uptime records, and strong customer support.  

Step 3: Request Product Demos  

Seeing the software in action is critical to understanding its strengths and limitations. During the demo: 

• Evaluate the interface for ease of use. A clunky, overly complicated system may frustrate employees instead of empowering them.  

• Check which features are included in the base package and which require additional fees.  

• Ask questions about scalability—will the system grow with your business?  

Step 4: Pilot Testing in Real Scenarios  

Once you’ve narrowed down your options, ask providers if they offer pilot testing in a real environment. Identify a small group of employees to use the system hands-on. This step will help you pinpoint any challenges before implementing the system at full scale.  

Step 5: Make Your Decision as a Team  

Gather feedback from your employees—after all, they’re the ones who will interact with the DMS daily. Ensure you gain full consensus from everyone involved to align on the best choice. Consider factors such as ease of use, feature functionality, customization capabilities, and vendor reputation before making the final call. 

6 Key Factors to Consider When Choosing a DMS  

The right DMS isn’t one-size-fits-all—it depends heavily on your dealership’s unique needs. Here’s a breakdown of essential features by department and overall considerations to keep in mind.  

1. Important Features by Department  

• Sales Management: Look for features like lead tracking, CRM integration, deal structuring, and automation tools to simplify your sales workflow.  

• Service Management: Tools for streamlining appointment scheduling, repair orders, and parts inventory tracking are a must.  

• Parts Management: Make sure the DMS offers robust inventory management, parts ordering, and pricing strategy features.  

• Accounting & Finance: Financial reporting, streamlined payment processing, and full GL integration are vital for long-term stability.  

2. Seamless Integrations  

Your DMS should integrate easily with both manufacturer systems and third-party applications, such as your marketing platform or website. This ensures a smoother flow of information across tools.  

3. User Interface & Customization  

An intuitive design reduces training time and minimizes errors. Additionally, a flexible system should allow for customization to match your dealership’s specific workflows.  

4. Technical Support & Training  

Enthusiastic staff adoption can make or break your DMS rollout. Choose a vendor that stands out in post-purchase technical support and offers comprehensive training for your team.  

5. Cost Considerations  

Factor in both upfront costs (like setup fees and implementation) and ongoing expenses (like per-user fees and potential licensing upgrades). Being transparent about costs will save your dealership from budget surprises.  

6. Vendor Reputation  

Finally, choose a provider with credibility. Research how they’ve performed with other dealerships—reading case studies or speaking directly with references can help verify this.  

Finalizing Your Decision 

After carefully evaluating all the key factors, it’s time to confidently choose the right Dealer Management System for your dealership. This decision should ensure the system aligns with your business goals, addresses your team’s specific needs, and provides the tools necessary to support long-term growth. Take the time to schedule a final demo to resolve any remaining questions, review the service terms in detail, and clarify the available support options to ensure a smooth and seamless transition. Consider how the DMS will integrate with your current processes and systems, as well as how it can adapt to future advancements or expansions in your business. Selecting the right DMS is more than just a purchase—it’s a strategic investment in your dealership’s efficiency, productivity, and overall success. Take the next step with confidence, knowing your choice will drive your business forward. 

Maximize Your Dealership’s Potential with the Right DMS  

Investing in the best dealer management system for your automotive business is a decision that will transform how your dealership operates. From increased efficiency to better customer satisfaction, taking the time to carefully select the right DMS will pay off in dividends.  

Remember, the right technology doesn’t just help your dealership run—it helps it thrive. The right DMS technology will help your dealership stand out from the competition while maximizing your profit potential—now and in your immediate future.  

Discover how dealers are finding opportunities despite the top five challenges they face. Download the eBook today!  

In her first solo episode, Host Jade Terreberry, Senior Director of Strategic Planning for Autotrader and Kelley Blue Book takes you through the key predictions Jonathan Smoke, Chief Economist for Cox Automotive released for the automotive industry and breaks down what each of them means to Dealers, including what actions they should take in response to best prepare and strategize for increased success and profitability in 2025.

Featured Guest: Mike Tegtmeyer, AVP with Autotrader and Kelley Blue Book with Cox Automotive gives an inside look and top takeaways from the new From Click to Close Learning series, hosted alongside Dealer.com, which shows dealers the five steps you need to master in order to stay competitive, stand out to your ideal customer at their very first click during the automotive consumer buyer journey and fast-track to a close.

Efficiency and customer satisfaction are crucial in the competitive world of automotive sales. What if you could enhance both with a single solution? Enter the virtual sales assistant—your dealership’s secret weapon for streamlining operations, enhancing customer relationships, and driving more sales.  

Virtual sales assistants have quickly become an essential tool for modern automotive dealerships, combining efficiency with customer-focused solutions. But what exactly is a virtual sales assistant, and how can it help your dealership thrive?  

This guide breaks down everything you need to know—from answering “what is a virtual sales assistant?” to showing you how it can transform your daily operations.  

• What is a Virtual Sales Assistant?  

• How to Use Virtual Assistants for Sales Support Tasks  

• What Tasks Can a Virtual Sales Assistant Handle?  

• The Benefits of a Virtual Sales Assistant  

• Choosing the Right Virtual Sales Assistant for Your Dealership  

What is a Virtual Sales Assistant?  

A virtual sales assistant is an AI-powered tool designed to perform sales-related tasks efficiently. Unlike human assistants, they work 24/7, enabling dealerships to provide round-the-clock support and services.  

These digital tools leverage cutting-edge technology, such as artificial intelligence and machine learning, to handle routine sales operations, answer inquiries, and even personalize customer experiences—all while saving sales teams precious time.  

Why the Automotive Industry Needs It  

The car-buying process has evolved, with digital engagement becoming a vital part of customer outreach. A virtual sales assistant ensures no lead is left unattended while creating a seamless experience for potential buyers.  

How to Use Virtual Assistants for Sales Support Tasks  

Using a virtual assistant for sales is simpler than you might think and can significantly streamline your operations. These intelligent tools are designed to handle tasks like lead qualification, appointment scheduling, and follow-ups, freeing up your team to focus on high-priority sales activities. Here’s how dealerships are incorporating virtual sales assistants into their operations to boost efficiency and improve customer experience: 

1. Lead Management  

Virtual assistants can identify, qualify, and nurture leads automatically. They ensure inquiries are followed up promptly, increasing the likelihood of conversion.  

2. Customer Engagement  

Personalization is the name of the game. Virtual sales assistants craft tailored messages and responses, keeping customers engaged and connected to your brand.  

3. Appointment Scheduling  

Say goodbye to back-and-forth emails! Assistants can manage scheduling, ensuring test drives and consultations fit seamlessly into your sales calendar.  

4. Post-Sale Follow-Up  

Keep the conversation going. Virtual assistants follow up with customers after a sale, gathering feedback and strengthening relationships for future upselling opportunities.  

What Tasks Can a Virtual Sales Assistant Handle?  

Virtual sales assistants are versatile tools that can handle a wide range of tasks, making them invaluable for businesses of all sizes. From managing repetitive administrative work like data entry, scheduling, and follow-ups to providing customer-facing support such as answering inquiries, processing orders, or assisting with product recommendations, these assistants help streamline operations. They free up valuable time for sales teams, allowing them to focus on building relationships and closing deals. Here’s a closer look at their capabilities:  

Administrative Tasks  

• Data Entry: Accurately updating CRM systems.  

• Document Management: Organizing and sending paperwork like contracts or invoices.  

Customer Support  

• Answering FAQs: Providing quick responses to common customer inquiries.  

• Live Chat Support: Handling live conversations with prospects.  

Marketing Assistance  

• Email Campaigns: Composing and scheduling personalized marketing emails.  

• Social Media Outreach: Engaging with prospects on social platforms to generate leads.  

Analytics and Reporting  

• Performance Reports: Compiling and analyzing sales performance trends.  

• Customer Insights: Offering insights into behavioral patterns to improve customer experiences.  

The Benefits of a Virtual Sales Assistant  

Implementing a sales virtual assistant offers several game-changing advantages for dealerships:  

1. Save Time and Boost Efficiency  

Automating repetitive tasks allows your sales team to focus on closing deals and building relationships instead of handling administrative burdens.  

2. Enhance the Customer Experience  

With faster response times and tailored engagements, customers feel valued and are more likely to choose your dealership over competitors.  

3. Reduce Costs  

Rather than hiring additional staff, virtual sales assistants provide an economical alternative that works round the clock.  

4. Maximize Lead Conversion  

No lead goes unnoticed. Virtual assistants ensure timely follow-ups, giving prospects the attention they need to decide.  

5. Gain Actionable Insights  

AI-powered assistants analyze customer data, providing you with insights to fine-tune your sales process and marketing campaigns.  

Choosing the Right Virtual Sales Assistant for Your Dealership  

Not all virtual sales assistants are created equal. Each dealership has unique needs, and the right assistant can make all the difference in boosting efficiency, improving customer interactions, and driving sales. Here’s how to find the one that fits your dealership’s specific goals and requirements: 

1. Assess Your Needs  

Identify the specific areas where your dealership could use support. Do you need help with data entry, lead management, or customer engagement?  

2. Evaluate Features  

Look for tools that offer capabilities beyond just supporting tasks, such as data analysis, integration with your CRM, and multilingual support if applicable.  

3. Consider Scalability  

Your dealership’s needs may grow. Choose a solution that can scale with your business.  

4. Seek User-friendly Interfaces  

Ensure the software is easy for your team to adopt and requires minimal training.  

5. Review Case Studies or Testimonials  

See how other dealerships have benefited from the virtual assistant. It’s a great way to gauge effectiveness in real-world scenarios.  

Unlock the Potential of a Virtual Sales Assistant Today  

Implementing a virtual sales assistant isn’t just about staying ahead of the competition—it’s about transforming how you connect with customers and streamline sales. With automation, increased efficiency, and unmatched insights, your dealership can unlock its full potential.  

Curious to learn more about how to revolutionize your dealership’s operations? Take the next step and explore the potential for significant growth in your retailing approach with this helpful resource from VinSolutions: Take a New Approach to Retailing.  

Featured Guest: Angela Drake, Director of Research and Market Intelligence with Cox Automotive gives a behind-the-scenes look at the new findings from the Evolving Consumer Study, which took a close look at those evolving behaviors and uncovered some key finding that are important for dealers, OEMs as well as the automotive industry plan and take pro-active actions on in order to have continued success on winning the sale.

In automotive sales, the tools, technology and insights that help your sales professionals understand your customers will make the greatest impact on your business. Keeping up with emerging automotive tech trends not only changes how your sales team interacts with customers but also has the power to streamline the entire experience for consumers—from online interest to in-person and everything in between. Understanding how to work these trends into your workflows could help you outsmart and outsell the dealer down the street. 

Here, we will explore the top tech trends that your dealership needs to know in 2025 and how they can drive sales growth and enhance customer satisfaction. Join us at NADA 2025 to discover these trends firsthand and see how they can transform your dealership. 

Enhance the customer experience with omnichannel technology 

With new technologies emerging, consumers will likely explore different methods of buying cars. Your next buyer is already taking some mix of traditional in-store avenues, more modern online methods, and usually some combination of both.  

Today’s consumers want a consistent, connected car-buying journey. In fact, according to Cox Automotive’s Car Buyer Journey study, 43% of recent car buyers used an omnichannel approach, and 71% are likely to do so in the future. That means more than 7 out of 10 shoppers will use multiple channels—online, in-store or some combination—to make their next vehicle purchase. 

Meeting this new omnichannel car buyer will demand technology and tools that create a seamless experience by leveraging consumer insights and allowing customers to pick up right where they left off during their most recent shopping experience. 

At NADA 2025, you can experience omnichannel technology with VinSolutions Automotive Marketing Platform.  

• VinSolutions Automotive Marketing Platform lets you leverage actionable consumer data and insights to implement dynamic automated marketing campaigns across multiple channels.  

Boost sales opportunities with exclusive predictive insights 

Cox Automotive’s exclusive predictive insights, powered by artificial intelligence, give dealers more information about shoppers—their interests and probable purchase decisions. Implementing these actionable insights into your sales processes can allow your sales professionals to better understand your shoppers’ next moves and personalize each step of the purchase journey.  

AI-led automations are helping dealers to deliver the right marketing messages to the right shoppers via text marketing and special-order parts notifications. Knowing more about shoppers, beyond what they submit online, and proactively reaching out to them at every purchase step can help you to maximize the profitability of every interaction.  

At NADA 2025, you can harness this power to identify shoppers 8X more likely to buy. With technologies like GenAI, Deal Central, VinSolutions’ Virtual Assistant, and VinSolutions Predictive Insights, you can personalize every customer interaction and turn your data into more deals.  

• GenAI gives your team the tools to quickly generate engaging, personalized communications for your customers using VinSolutions Predictive Insights. 

• Deal Central empowers your team to close deals faster and increase back-end profits through a modern deal-making experience. 

• VinSolutions’ Virtual Assistant helps you to recognize returning customers through their inquiry details when chatting online. 

• VinSolutions Predictive Insights allows you to pull information, such as vehicles of interest, trade-ins, and more to create customized, personalized proposals that lead to more profitable deals. 

Harness industry-leading expertise to out-sell the competition 

Even as technologies like artificial intelligence continue to evolve the automotive sales landscape, strong, trusted partnership is still vital for dealership success. In fact, in 2025, industry-leading experience can help your dealership to take full advantage of the latest tech trends.  

As you implement new technologies, make sure that you have a partner working relentlessly behind the scenes to deliver customer experience infrastructure, a commitment to speed-to-response, connecting solutions, training and more. In other words, make sure that your technology partner is committed to and capable of growing with you.  

At NADA 2025, you’ll get a chance to meet with VinSolutions Performance Managers—real industry experts with real industry experience—to help your dealership’s sales personnel identify every opportunity and maintain healthy client relationships. As part of Cox Automotive, VinSolutions is committed to developing innovative automotive technologies that move your dealership forward, into 2025 and beyond.   

Schedule your VinSolutions demo at NADA 2025 to experience omnichannel technology, powerful artificial intelligence and automation, and unmatched industry leading expertise.