The Road to ROI with F&I

Lack of Dealership Compliance Affects Customer Trust – and Loses Sales

Posted by Vanguard Dealer Services on May 11, 2016 11:00:00 AM


Do your customers ask about dealership compliance and expect your sales staff to produce training certificates? Probably not, but that doesn’t mean they aren’t thinking about it. According to a March 2016 survey conducted by the Total Dealer Compliance (TDC) organization, 73% of consumers feel more at ease working with a dealership staff that is fully compliance trained and displays their completion certificates. Yet, only 37% of dealerships actually make sure all of their staff has comprehensive compliance training. This all leads to lost profits.

The TDC survey discovered that non-compliance costs the average dealership about $792,000 each year. Customers feel more comfortable with transparency and many worry about hidden costs and a process that they don’t quite understand. Ask your sales staff to take their time and make sure customers understand any compliance issues that pertain to them to help build trust. According to statistics gathered by DealerRefresh, 71 % of customers purchased their car because they trusted the salesperson.

Not only will this increased trust help you make a sale, but it may bring you future sales. The TDC survey also found that of consumers refer family and friends to a dealership that considers compliance a top priority. Satisfied customers make referrals, which is more profit for your dealership.

Increase dealer compliance by working closely with your staff and ensuring that they get training for the latest certifications. Prominently display the certificates so customers easily see them. Don't isolate your dealership compliance officer in a back office but do make them an approachable resource for all employees. To better understand how your dealership needs improvement, contact us for a wider range of services, including compliance reviews.

Topics: compliance, dealership compliance

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