Automakers build their business on exceptional customer service and state-of-the-art products. However, dealerships also need to reflect the same high-quality service to guarantee repeat sales. After all, dealerships are an integral part of the customer experience journey.
A deal audit helps dealerships protect their bottom line. Staying compliant with federal and state laws also improves public relations, increases employee retention, reduces legal problems, and keeps your dealership running.
Below, we take a comprehensive look at the top areas that need to be covered in a deal audit. Read on to ensure your auditors are doing their job – helping you avoid compliance issues while building customer loyalty.
OFAC
Your dealership is required to cross-check your customers' names against the office of foreign assets control (OFAC). It is a specially designated national list that contains companies and individuals controlled or owned by targeted countries. Equally, the list includes entities and individuals such as narcotics traffickers and terrorists.
Risk-Based Pricing Disclosures
A customer has to be informed if you are offering them worse credit terms than other consumers due to their credit report. In most cases, the consumer is given a higher annual percentage rate than regular customers. Integrating your F&I process with a compliance technology solution can help notify your customers about their credit reporting and terms.
Red Flags
Because your business acts as a creditor, you need to implement an identity theft program. It should be a prevention program that helps detect identity theft in your daily operations (red flags rule). You then need to take the necessary steps to prevent the crime while mitigating any damages.
8300 Form
You must protect your dealership from money laundering accusations by the IRS. Therefore, any person taking a $10,000 cash payment or more needs to file form 8300.
Let Us Help
Protecting your bottom line while keeping your dealership compliant is our number one priority. At Dealership Development, Inc, we work with you to keep your dealership running smoothly. These include keeping your workforce safer, building customer loyalty, and mitigating risk. Ensure you contact us today to get started.