3 Reasons Why Your Dealership Needs to Hyper-Focus on Compliance


While there are no laws that require you have to hire a compliance officer, there's a chance that without a hyper-focus on compliance, you could wind up breaking actual laws as a result.

Let us explain.

Laws Exist

Auto dealership compliance laws are real, complex, and plentiful. Everything from independent inspections, to credit practices, to mandatory disclosures (and more!) is guided by federal, state, and local laws.

These laws exist for a reason. They protect both the consumer and the dealership from unnecessary risks. 

Since they exist, it’s essential that we do our part to follow them. 

Laws Can Be Tricky to Understand

Because laws are layered according to federal, state, and local ordinances, it's important that you have a grasp not only of the big picture but also how all compliance laws fit together. 

To this end, dealerships will often put together a compliance curriculum and/or hire a compliance officer to ensure everything is working together smoothly. Larger dealers may even put together a compliance team.

Regardless, whether you're "on the team" or not, everyone must work together on compliance issues.

According to Linda Robertson, executive director of the Association of Dealership Compliance Officers, "The best way to keep a store out of trouble is to create a culture in which compliance issues can be reported without fear of recourse, so that mistakes can be rectified before lawsuits are filed."

Consequences Are Real

Make no mistake. Failing to establish a hyper-focus on compliance can have serious consequences in the long run.

The consequences for dealers that do not comply with the law, can range from a minor warning to criminal action against the dealership, to a revocation of a dealer's license. You can be literally put out of business and experience big damages not only to your finances but to your reputation as well. (Autoxloo)

Fortunately, you still have time to get your dealership on track. 

We Can Help

Here at Vanguard Dealership Services we want to help you make the most of your opportunities for growth.

To hear more about compliance or to discuss anything else, please feel free to contact us at any time.

We look forward to connecting with you. 


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