What to Look for When Choosing a Dealership Compliance Partner
Key takeaways
- Many dealers treat compliance as a necessary evil and give it limited attention because their focus is on selling cars, parts, and service.
- There is a lot of misinformation circulating about what compliance requires and how to do it.
- A compliance company should act as a partner that handles compliance needs so the dealer does not have to worry about them.
- A compliance provider should accompany the dealer to any audit and have the strength to support them through a civil action or governmental fine.
- Dealers should take time, especially at year end, to seriously vet their vendors to confirm they provide the service and backing needed.
Summary
Compliance often gets treated as a necessary evil at dealerships, something squeezed in around the real business of selling cars, parts, and service and supporting staff and the community. That mindset leaves gaps, not because dealers do not care, but because attention and time are limited. The video argues compliance does not have to be complicated or time consuming, and that much of the confusion dealers face comes from misinformation about what is actually required and how to meet it.
The core message is about vendor selection: a compliance provider should function as a genuine partner, not just a vendor selling a product or service. That means being present for audits, having the resources to support the dealership through a civil action or governmental fine, and standing behind the dealer if a problem arises, rather than disappearing once a contract is signed. Dortch urges dealers to use year end vendor reviews to seriously vet compliance partners and confirm they provide real backing, not just a checklist, since the strength of that support matters most when something actually goes wrong.
Transcript
Compliance as a necessary evil for dealers
Hi, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I'm talking to you today because I really want to talk to you about compliance as a whole, in general. You know, most dealers, hell, probably everyone, looks at compliance as this necessary evil, right? And so the attention that's paid to it is limited at best, because ultimately, really, what is a car dealer out there to do, right? What's your ultimate goal? Sell cars, parts, service. I get it, that's what it is, that's what you're there for. You're there to turn a profit. You're there to support anywhere from let's say 60 or 70 families to, in some instances, thousands, depending on the size of your organization. And I get that.
Dealer involvement in local communities
Not to mention that car dealers are very, very involved in usually most of their communities. I mean, we've got a local dealer here, great guy, he even goes to the extent of going out of state to bring, you know, dogs into town and setting up adoption weekends and things of that nature. So the activities and the things that go on in the dealership, and that the dealer does for the communities, most people don't even understand it, don't comprehend it.
Compliance should not be complicated
And why am I saying all of this? It's because compliance shouldn't be tough, right? It shouldn't be something that complicates your world. It should be pretty easy, and really it can be. There's a lot of misinformation out there about compliance and the different things that you need to do and how you need to do it. So what I guess what I'm trying to tell you is this: don't let it become an issue that prevents you from doing other things, or that takes time away from things that you really need to concentrate on. Compliance should be something that you hand to someone like us and you say, "Here guys, you know, take care of me, make sure that I'm protected."
What a true compliance partner provides
And that's really what it all comes down to, is you want to hire a compliance company that's going to come in, that's going to treat you like a partner, and that's going to take care of your compliance needs for you, and that you don't have to worry about it. And when I say take care of you, I mean make sure that if something does happen, that they're going to have your back in the whole situation. Make sure that they're going to come with you to any type of an audit. Make sure that they have the wherewithal and the strength to be able to support you, should there be any type of a civil action or a governmental fine of some sort.
ARMP's approach as a partner
So make sure that those companies are there to protect you, just like the dealer really is there to protect their community and work with their community and be partners with their community. And that's really what a lot of us at Automotive Risk Management Partners do, is we're in this to be partners with you. We're not in this to just sell a product or a service.
Year end call to vet your vendors
So take the time, when, you know, the end of the year here and the beginning of next year, when you're looking at your vendors, really take a serious look at all of them and vet them properly. Make sure that they're providing you the service that you're supposed to get, with the backing that you need. Anyway, just thought I'd throw that out there for an end of year thing. You guys take care, have a great holiday, Merry Christmas to everyone, and if you have any questions or comments, anything like that, just give us a call, number's on the screen. Thanks, talk to you.
Questions this video answers
What should a dealer expect from a compliance company?
A dealer should expect a compliance company to act as a partner that takes care of compliance needs, has their back if something happens, comes with them to any type of audit, and has the strength to support them through a civil action or governmental fine.
Why does compliance feel like a burden to dealers?
Compliance feels like a burden because dealers are focused on selling cars, parts, and service and supporting their employees and communities, so limited attention gets paid to compliance, and there is a lot of misinformation about what needs to be done and how.
When should dealers review their compliance vendors?
The speaker suggests dealers use the end of the year and beginning of the next year as a time to seriously look at all their vendors and vet them properly to make sure they are providing the service and backing needed.
Covered in this video
- Compliance vendor selection
- Vendor due diligence
- Audit support