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!
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.
Top 10 Dealership Laws and Regulations
As we have already discussed, the automotive retail industry faces a complex challenge of complying with the stringent legislation as set by state and federal governments. Many dealerships have often fallen short of expertise, time, and workforce to uphold the mandatory requirements.
In part two of our article, we break down the regulatory language and jargon to help you understand what the federal and state is required of you.
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.