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Discover how custom notifications in Xtime Inspect can help your dealership turn declined services into service revenue and inventory acquisition opportunities. Learn how to identify and engage with customers who have declined a service over a specific dollar threshold.’

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. Consumer Protection  

The Fifth Circuit Court of Appeals recently overturned the FTC’s Combating Auto Retail Scams (CARS) Rule on procedural grounds. The legislation was designed to protect consumers from unfair and deceptive practices with a focus on add-on products, vehicle pricing and advertising, and hidden junk fees. 

The CARS Rule aside, laws prohibiting unfair and deceptive practices remain in place across various jurisdictions. Dealers should be aware of the significant rise in state legislation aimed at banning junk fees, hidden fees, and promoting pricing transparency. In addition, deceptive practices including material misrepresentations and hidden fees remain prohibited under federal and state UDAP regulations.  

What You Can Do: Prioritize compliance measures including consistent disclosures and consumer notices to protect consumers from unfair and deceptive practices. Ensure that your advertising remains transparent, truthful, and fully compliant with TILA requirements and other UDAP standards, as these unlawful practices are still subject to legal action and reflect on their reputation with consumers.  

2. Aftermarket Financing Scrutiny 

In recent years, aftermarket items must be disclosed separately, and a dealer must clearly disclose that their purchase is voluntary and not required to obtain financing. Many states also have detailed regulations about how various aftermarket items must be separately disclosed to the consumer. 

What You Can Do: Be aware of state laws that require specific notices to be given to consumers regarding certain aftermarket products. Pay special attention to parts of the finance process like unwanted add-on products (such as payment insurance and paint protection), inconsistent contract language, inaccurate reporting to credit companies, and more. Charge the same price for each product and each grouping of products, online or in-store. Do not surcharge credit customers, as the surcharge is considered part of the “finance charge” under TILA and must be calculated into the APR and disclosed in the RISC. 

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. 

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!  

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.