Why Dealerships Need Both Physical and Virtual Compliance Audits
Key takeaways
- A compliance auditing program should include both physical, on-site auditing and virtual auditing, not just one or the other.
- Understanding how a dealership's physical floor operations work is necessary before a virtual compliance program can be meaningful.
- A compliance company that offers only remote monitoring without ever walking through the dealership cannot provide a sufficient compliance program.
- Automotive Risk Management Partners positions itself as an auditing firm that performs both physical and virtual audits of dealerships.
Summary
A sound compliance program depends on combining virtual auditing with physical, in-person audits of the dealership floor. Reviewing documents and data remotely can flag certain issues, but it cannot substitute for someone walking the lot and understanding how the dealership actually operates day to day. Any compliance provider that offers only remote monitoring, without ever setting foot in the store, is leaving gaps in the program that put the dealership at risk.
For a dealership principal, GM, or F&I director, the practical takeaway is to question any compliance vendor that relies solely on remote reviews. Terry Dortch argues it's common sense that a provider who doesn't understand how the floor works can't fully understand or fix the rest of the compliance picture. Dealers should expect both physical and virtual audits from their compliance partner, and treat a vendor offering only one as a service gap worth addressing before it becomes a liability.
Transcript
Introduction to ARMP as an auditing firm
Hi, my name is Terry Dortch. I'm with Automotive Risk Management Partners. I want to talk to you today about auditing, because that's really what we are, Automotive Risk Management Partners. We're an auditing firm, that's what we do. We come in and audit your dealership.
Why physical and virtual auditing must go together
There's a lot to be said for virtual and physical auditing. You need both. If you're not doing both, you're doing yourself a disservice. You need to understand, you can't understand the virtual if you don't understand the physical aspects of your dealership. Just can't. The two have to go hand in hand.
Problems with remote-only compliance programs
So any company, any compliance company, that's trying to tell you that they can do things remotely, or that they can monitor and give you a compliance program that is sufficient for you without walking in your dealership, they're doing you a disservice. Think about it, it's only common sense. If I don't understand how the floor works, how in the hell am I going to understand everything else? Can't do it.
Call to action for dual auditing
I'm telling you right now, you've got to have both physical auditing and you've got to have virtual auditing. Please, if your compliance company's not doing both, give us a call. Information's on the screen, reach out to us, we'll be more than happy to talk to you. Bye.
Questions this video answers
Why can't a compliance company just monitor my dealership remotely?
Because understanding the physical aspects of a dealership, like how the floor works, is necessary to understand the virtual side. A company that never walks into your dealership and relies only on remote monitoring is doing you a disservice.
Do I need both physical and virtual compliance audits?
Yes, the transcript states you need both physical and virtual auditing, and that if your compliance company is only doing one, you should reach out to a firm like Automotive Risk Management Partners that does both.
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Covered in this video
- Physical compliance audits
- Virtual compliance audits
- Dealership auditing