Automotive Risk Management Partners ARMP

Reframing Dealership Compliance as a Sound Business Decision

Terry Dortch President, Automotive Risk Management Partners

Key takeaways

  • A dealership compliance program should be viewed as a good business decision rather than a mandated burden imposed by the government, state AGs, or the FTC.
  • Compliance creates structure that gives employees a clear mandate to follow.
  • The ultimate goal of a dealership is to build a business that generates income long term and to keep that income rather than losing it.
  • Viewing compliance as beneficial to business growth, rather than a necessary evil, helps a dealership flourish.

Summary

Compliance is often treated as a burden imposed by regulators like state attorneys general or the FTC, a set of boxes to check and little more. This video argues for a different mindset: rather than a necessary evil pushed to the side, compliance should be viewed as a sound business decision that supports how a dealership actually operates day to day.

The core case is that a compliance program gives employees structure and a clear mandate to follow, which supports the dealership's real goal of building a business that generates income over the long term and keeps the money it earns rather than losing it to fines or claims. Terry Dortch frames compliance as something dealership principals, GMs, and F&I directors should treat as an ongoing operational asset rather than a regulatory chore, since a structured, well-run program protects revenue and helps the store hold onto what it has built.

Transcript

Compliance as a business decision, not a burden

Hi, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I want to talk to you today about compliance. I know most of you out there think compliance is a dirty word, um, it's something that should be pushed off to the side. It's mandated by the government, you know, whether it's the state AGs or the FTC. Um, you're required to do certain things and check certain boxes. You know what, stop thinking like that. You can't think like that about compliance. You have to think of it from a business standpoint. It's a good business decision, and it's good for several reasons.

How compliance creates structure and protects income

One, it creates structure. So now your employees have a mandate, or a structure, that they need to follow. And really, what are you ultimately trying to do? You're trying to build a business that's going to generate income for you for a long, long time, and you want to keep the money that you make. You don't want to be giving it back.

Rethinking compliance to help the business flourish

So when you look at a compliance program, don't look at it as a necessary evil, necessarily, but look at it as a good business decision, something that you have to do to help your business flourish. And there's a lot of aspects of compliance, so please think of it in a different light than what you have been thinking about it. It's not... it's something that needs to be done as a good business decision here.

Contact information

Give us a call, our information is right here on the screen. Thanks.

Questions this video answers

Why should dealerships care about compliance beyond just following government rules?

Compliance should be seen as a good business decision rather than something mandated only by the government or state AGs and FTC. It creates structure for employees and supports building a business that generates income long term while helping the dealership keep the money it makes.

What is the benefit of having a compliance program at a dealership?

A compliance program creates structure, giving employees a mandate to follow. It is not just a necessary evil or box-checking exercise, but something that helps the business flourish and supports long-term income generation.

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Covered in this video

  • Dealership compliance programs
  • FTC
  • State Attorneys General