Compliance is central to any dealership’s operation. There is almost no area of a dealership business that does not face some compliance requirement. This week’s issue, therefore, has compliance as a theme. While compliance irritates many, it is a fact of life.
First, Terri Harris from DHG Dealerships looks closely at two areas of a dealership’s operations that, if accounted for incorrectly, can be big headaches. Demonstration vehicles and used cars are two areas where that pain can be intense if a dealership is preparing to be sold or if it is audited, she says. Even in the absence of those two circumstances, looking at those two areas more closely can help you identify problems you weren’t aware existed, she adds.
The service department is growing in importance as a source of profit for all dealerships. Indeed, service and parts as a percentage of gross profits rose in the most recent NADA dealership profile, while the new vehicle department’s contribution to gross profits fell.
That’s why I asked Compli to expand on a post I read on their site listing the many compliance issues that service departments face. From complying with The Clean Water Act by properly disposing of toxic liquids to reporting information about defective and recalled tires to NHTSA, the list is long.
And of course we have, as always, Transaction News.