How to Tell a Real Dealership Compliance Vendor From a Fake One
Key takeaways
- ARMP visits dealerships at least three to four times a year, often closer to six, as part of its hands-on consulting approach.
- Dealers working with ARMP get a direct line to Terry Dortch, the operations director, the consultant, or the attorney rather than an 800 number.
- Many dealerships can configure data encryption themselves through platforms they already use, such as Office 365, Gmail, or iOS systems.
- Real encryption software is typically priced on a per-user basis at a few dollars each, so a very low flat monthly fee for encryption is a warning sign.
- ARMP developed its own phishing campaign software over a year before bringing it to market and provides reporting on who clicked and opened test emails.
Summary
Not all dealership compliance providers deliver the same value, and the gap often comes down to how much real, hands-on work is behind the service. Many companies now sell remote-only packages that minimize contact with dealership staff, and some charge for basics like data encryption that a store may already have available through platforms such as Office 365, Gmail, or iOS, which can be configured to encrypt data without an extra monthly fee. The video urges dealers to look past sales pitches and ask whether a vendor is providing real substance and a working understanding of the dealership's actual data flow, or just charging for something the store could already do itself.
Terry Dortch draws on decades in dealership operations to argue that effective compliance work requires ongoing conversation and in-person engagement, not a one-time setup or an 800 number. He describes ARMP's approach as consulting-based, with multiple in-person visits a year, direct phone access to consultants and legal support, and an in-house phishing testing system built over a year of development that reports who clicked, when, and how often. For a dealer principal or F&I director evaluating vendors, the takeaway is to scrutinize what is actually being delivered for the fee and prioritize providers who tailor recommendations to the store's real operations rather than selling generic packages.
Transcript
Terry Dortch's background in the car business
Hello, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I'm here today to talk to you about the differences in the compliance companies out in our retail automotive space. You know, I've been in this car business a long time. I started in this business when I was 14 in a wash rack at a Lincoln Mercury store, and other than a brief stint where I went to college and thought I could do something other than the car business, I've been in this car business for over 40 years. I've seen a lot of things change. I've seen a lot of different paths taken and different ways to try and sell cars, to try and increase revenues, and I mean I've seen a lot of different things. I'm old school, and I believe that relationships, conversation, talking to people, being hands-on is really what defines who we are and how we do business.
Warning signs of remote-only compliance vendors
You're going to see compliance companies out there that are really, really trying to find a way to never talk to you. They're trying to sell you packages out there where everything's done remote, and when I say that, some of that's good, right, because you don't want to disrupt your day-to-day operations in the dealership and things of that nature, so I get a little bit of it. But the reality of it is that anything done remote, if there's no hands-on, if there's no conversation, if there's no true working with the dealership, the results are going to be fractional at best. And the reason I'm telling you that is when you're looking at your compliance company, make sure that there's a method to what they're doing. Make sure that what they're bringing to you is a real, true solution and not air.
Looking for substance over empty products
You know, we've sold products in the automotive industry over the years that some had real value to the consumer and others didn't, and you know what I'm talking about. Anybody in the auto industry that's been in it for any long length of time, you know about all the different things that we've done in the car business and the things that have gone on and the different products that we've represented, and how we could even talk about throwaway cars. You know, I've been around long enough to see Yugos and cars that never made it in the industry because there was no substance. And I guess what I'm trying to tell you is when you're looking at your compliance company, look for substance. Look for somebody that understands the business. Look for somebody that will bring you a solution that's really going to solve your problem and that's not just selling you air.
Understanding what you're paying for with encryption
One of the things that a lot of companies are going to talk to you about, they're going to say, listen, we do phishing, or we're going to have a setup of a system where we encrypt your data. You know, bottom line, guys, is that if somebody's trying to sell you an encryption piece for a hundred dollars a month, they're not encrypting anything, tell you right up front, because you can go out there and find software platforms, you can find programs that'll do all the encryption for you, that'll do the, and they're going to charge you on a per-user basis, and it's always going to be a couple of bucks, you know, two, three, four, five dollars depending on the extent of what you're buying and what you're trying to accomplish. So what I'm trying to tell you is that there's a lot of ways that you got to understand what you're buying when you buy it.
How dealerships can already encrypt their own data
So let's talk about encryption for a minute, real briefly. Most of you are probably doing something through Office 365 or through Gmail, or you know, you're using an iOS type of system. All of those can be configured right from your dealership as far as encrypting data. You can encrypt all the data you want right there. So there's other ways to discuss or to talk about, and this is where the whole consulting aspect comes into play and gets back to, we need to have a conversation with you and understand how your dealership functions, what the real flow of data is in the dealership, so that we can suggest this is what you need to do, this is what you don't need to do.
ARMP's phishing testing and reporting
You know, if you talk about phishing campaigns and things of that nature, we have our own system that we've developed. You got to remember, we spent a year developing everything before we came to market. That software platform that we have right now, we do our own phishing and we'll provide you with reporting statistics now that'll show basically, you know, who clicked on it, when it was clicked, who opened, how many were opened. I mean, it'll give you a whole scenario of what that is. But really, the bottom line, what I'm trying to tell you is this: when you're looking at your compliance companies, make sure that you're really looking at what they're giving you for your dollar. Make sure that they're not selling you something that you could be doing on your own, or something that they're selling you nothing more than a suggestion.
What sets ARMP apart as a hands-on consultant
One of the things that differentiates us from everybody else is we are hands-on, we are a consulting company. We're going to come in and see you at least three or four times a year minimum, and more than likely it's going to be more like six. But the point is that we're going to come in and sit with you, or if you have questions, you can pick up the phone. It's not an 800 number, you're going to call a direct line to either me, our operations director, your consultant, our attorney, whatever the case may be.
Closing call to action
So the bottom line here is this: when you're looking at your compliance company, especially now, we're going, you know, we got a new year starting, if you're looking to change things up, if you're looking to make sure that you're doing the right things, give us a call. Phone number's on here, website's here. Give us a buzz, send us an email, we'll be more than happy to get back to you. Thanks.
Questions this video answers
How is ARMP different from other compliance vendors?
ARMP is a hands-on consulting company that visits dealerships at least three to four times a year, often closer to six, and gives dealers a direct line to Terry Dortch, the operations director, the consultant, or the attorney rather than an 800 number.
Should I trust a vendor charging a low monthly fee for data encryption?
Be cautious of anyone selling encryption for a very low monthly fee since real encryption solutions are typically priced per user at a few dollars each. Many dealerships can already configure encryption through platforms they already use, like Office 365, Gmail, or iOS.
What should I look for when evaluating a compliance company?
Look for a company with real substance that understands the automotive business and brings an actual solution to your problem, rather than one that is just selling you air or a suggestion you could implement yourself.
Does ARMP offer phishing testing as part of its services?
Yes, ARMP developed its own phishing campaign system over a year before bringing it to market, and it provides reporting statistics showing who clicked, when they clicked, and how many emails were opened.
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Covered in this video
- compliance vendor evaluation
- data encryption
- phishing testing
- vendor due diligence