Every dealership needs to have protocols that are to be followed. Sales team members need to be aware of dealership compliance due to the legal requirements of disclosing all information. Further, it should be a fireable offense in the event that a team member fails to maintain dealership compliance.

Protecting the Dealership

Finance and insurance products are offered for a reason. They are designed to protect the dealership as well as the assets. If a sales team member isn’t disclosing the limitations of the products, this can be a problem – and open the dealership up to possible lawsuits and other issues.

In all fairness, training should take place first. After that, they need to be terminated in the event that they do not make full disclosure regarding the products. This is simply because they are putting the dealership at risk.

Maintaining a Relationship

Customers want to know the whole story. If they are not told of the limitations of the products they are purchasing, they will get disappointed and may want to sue. This can cost everyone a significant amount of money and time, and it can also result in the trust between the customer and the dealership being broken.

Dealership compliance checklists and such are there to help the sales team discuss limitations. Customers benefit from F&I products because it provides a longer life for their vehicle and can reduce maintenance costs. However, if customers are not being told of limitations, they could end up with problems and that's when they are going to turn against the dealership.

This can all be avoided by putting an employee’s job in jeopardy if they don't remain compliant.

Learn more about dealership compliance by contacting Vanguard Dealer Services today.