There are several laws and regulations set by the federal and state governments to control automotive dealerships, and it can be stressful and straining for you to keep up with them all. You will not only be working on ensuring you keep up with all the required laws, but there is the challenge of knowing whether you are implementing them in a legally acceptable way. This is where compliance audits come in handy.
Dealerships are under a lot of scrutiny these days. In order to comply with state and federal regulations, it's important that dealerships stay up-to-date on the latest laws. That being said, many dealerships fail to keep their compliance in check because they don't know how or where to start. Fortunately for you, we have compiled a list of tips that will help you stay compliant with new deals and regulations so your dealership can continue doing what it does best: helping customers find the perfect car!
Nowadays, there are multiple state and federal regulations regarding automotive dealerships. These regulations' primary intent is to protect consumers as well as employees from unethical practices.
You risk paying hefty fines and other consequences if you run afoul of these regulations, not to mention the damage to your reputation. Thus, the best thing to do is always ensure you maintain a dealership that adheres to state and federal regulations. Below are the top five ways of ensuring your dealership remains compliant.
Dealership compliance is a vital consideration, especially after the creation of the Consumer Finance Protection Bureau. It is your job to keep up with numerous regulations, from marketing to F&I and inventory. Although it seems like a lot of work, these five strategies can help keep your dealership compliant.
If you are running a dealership, you must have known by now that having a robust internal control environment is a crucial success factor in your business. With the proper internal controls and consistent audits, your organization cannot only achieve the set goals but also guaranteed operational efficiency and effectiveness.
DESIGNING A SUCCESSFUL F&I PROCESS FOR YOUR BUSINESS
Having a well-established F&I department is one of the most important things for financial growth. Establishing strong profit centers within your organization helps you ensure that the purchase process is well monitored by scrutinizing the customer. Some of the ways that the F&I process helps dealerships are; access client credit reports, review credit application, and budget clients' credit reports and leases or loans within the set guidelines of financial institutions such as banks, financial companies, and lease companies. Conducting a successful F&I process plays an important role in client engagement and attracting prospects through the opening.
Most automotive managers are so pre-occupied with bottom-line results (driving profits) above all else. And that's fair enough since today's auto retail industry is more competitive than ever. Nevertheless, the cowboy car dealer days are well over.
For dealerships to be successful, they must stay compliant with the latest state and federal regulations. By implementing an internal audit plan, you will employ the routine checks and balances your dealership needs for compliance.
Unfortunately, fraud does occur within automotive dealerships. By committing to a routine system of checks and balances, you will also strengthen your dealership against internal fraudulent activity. You will also feel confident that you are employing the best people and the best practices.
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.
Compliance with various state and federal rules and regulations is a crucial requirement for any business to thrive. The automobile dealership industry is no exception to this. One effective way to handle compliance in this business is through the implementation of deal audits.