Dealership Development, LLC Blog

Not long ago, purchasing and selling online was something very few knew how to do. However, selling online has shown new, customized, and varied ways of performing a simple task and has resulted in efficiency, innovation, and a higher earning rate. Online selling has become the answer to those who are looking for an item they can’t find locally. It has been even more convenient for people who have a limited amount of time and for those who—due to different limitations—cannot physically visit a store.

Did you know, when it comes to a compliance fine, any chief officer can be fined individually? And the fines are not just issued for leaving physical papers unattended anymore. The advent of car-shopping websites and mobile apps have increased the need for dealer awareness and responsibility in avoiding stolen personal information from online sources.

"If you have a piece of customer information that is not safeguarded properly, there's a (noncompliance) fine of $40,000 per day," says Matt Woods, director for field operations at an Austin, Texas dealership consultancy service group in a recent report from Automotive News. What does this mean? That one unlocked cabinet in an unattended office could result in astronomical fines—one for every file. Not only does this lack of security result in fines, it also manifests as loss of customer’s trust and loyalty as well as possible lawsuits.

"Additional streams of revenue."

It’s the catch phrase for how a company or individual can profit even when the economy is down-turning or sales are weak. It’s the sign of an entrepreneur that understands they not only protect your business, but provide opportunities to meet more of your customer’s needs and develop a long-term relationship. A prepaid maintenance plan (PPM) offers both of these solutions--additional income through your service department and customer retention and loyalty, and yet, recent research shows that 65 percent of dealers are not providing PPMs and in so doing they are leaving millions of dollars on the service floor.

Have you ever looked up vehicle service contracts in a search engine? The top articles and posts you will find are filled with words like, scam or skip, and most of your customers are reading these articles before they even walk in your door.

This puts your dealership at an immediate disadvantage at the negotiating table, which is why understanding how to properly position your vehicle service agreements to car buyers is so important.

A decade ago if a customer lost their car keys it wasn't a big deal. They could call a locksmith or go to almost any hardware store and get a new car key for relatively little money. Unfortunately, car keys can now be very costly to replace. 

It has often been said that any company's best asset is its employees. Successful companies have recognized and implemented that truth into their business models. Every staff and organization has individuals who can be utilized in particular roles with great success. There are also among those members, some special talent. A considerable portion of a company's growth and success can be attributed to finding that talent early. Grooming those people to lead and step into financial services and management roles benefits everyone.

Life is full of surprises and unfortunately, not all of those are pleasant. Having to suddenly come up with $1,000 or more for an unexpected bill definitely qualifies as unpleasant. While we all like to think that one-thousand dollars is semi-manageable, but the truth of the matter is that more Americans would have trouble coming up with that money on the spot, than you'd think.

Managing a team of automobile sales professionals is a complex pursuit with a simple objective: to meet or exceed the dealership's sales goals. Our 10 point checklist for the successful sales manager will help you stay on top of the most pressing issues you face.

Products that promote future trips to your dealership's service department remain crucial in today's competitive retail environment. Prepaid maintenance plans offer a customized appeal for your customers. Typically, about one fifth of customers return to visit the service department at a dealership. When you offer a prepaid maintenance plan to your customer, you may double, or even triple your return visits.

Your F&I department is ever-changing, and it is important to stay ahead of the game. You need the knowledge, the familiarity, and the skills from experience. You need to keep abreast of the latest developments and industry trends that keep the finance & insurance department healthy and successful.

No matter what the changes to the industry, or your own dealership, there are a few core ideas that build a successful F&I department.