![\"00-Dealership](\"https:\/\/www.autoraptor.com\/wp-content\/uploads\/2016\/04\/00-Dealership-Compliance-How-to-Know-if-Your-Dealership-is-At-Risk-01.png\" "\\"\\"")
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Dealership compliance has spread like wildfire since the passing of Dodd-Frank and the formation of the Consumer Finance Protection Bureau.\u00a0There are numerous strict regulations, from F&I to marketing to inventory, that it’s your job to stay on top of.<\/p>\n
How is it possible to keep up? As an owner, protecting yourself from these dealership compliance issues is a big deal. The penalties are potentially enormous and career-ending if you don\u2019t watch your step.<\/p>\n
At the same time, if you\u2019re putting in the right amount of effort to stay on top of these issues, you\u2019ll be fine. It\u2019s all a matter of awareness, training, and prevention. Because there are so many regulations to adhere to, it\u2019s wise to\u00a0strategize so that no one in your dealership\u00a0ends up breaking the rules. Blaming non-compliance as \u201can accident\u201d won\u2019t save you in a courtroom.<\/p>\n
It\u2019s a\u00a0law to designate a compliance officer in every dealership.<\/span><\/p>\n Here\u2019s some advice: take this position and its responsibilities seriously.<\/span><\/p>\n Your officer is the spearhead of your compliance strategy.<\/span>\u00a0Send him to seminars, trainings, certification courses\u2014anything that will help him protect your dealership from exposure. Here are a few ideas that will benefit your dealership.<\/p>\n Identity theft prevention is paramount for car dealerships. The Red Flags Rule (RFR) mandates that your staff must be proficiently trained in examining the actual identity of your customers. The RFR is of particular importance because there are so many ways to fall into non-compliance, even when you think you\u2019re doing it right. Besides training your staff to make more sales<\/a>, you need to make sure they know who they’re selling to.<\/p>\n Don\u2019t take these regulations for granted\u2014identity theft is widespread in the U.S.<\/p>\n If your dealership compliance needs work, consider hiring a consultant to audit your procedures and set up a compliance checklist. This would be a perfect learning opportunity if you’re newly appointing a compliance officer.<\/p>\n It may be an\u00a0added expense, but long-term it will cost much less than being slapped with a fine for being non-compliant. Think about it as insurance for your dealership’s future.<\/p>\n You may choose to hire\u00a0a\u00a0legal consultant\u00a0to review your entire dealership once and leave the responsibility on your compliance officer moving forward. Another option is to create room in your budget to have a legal consultant do a large first-time audit, and then return annually to review the compliance officer’s overall work.<\/p>\n Most of your salespeople know about the various dealership compliance regulations, but they may not\u00a0know them enough to understand all the angles and consequences. Some people will cut corners on these rules. They\u2019ll get comfortable, go about every deal in a casual way, and then it\u2019s on your head when they screw up.<\/p>\n Don\u2019t let that happen. Create a standard process for your sales team. Hit every point necessary, and make it clear that these steps are mandatory.<\/p>\n Those are only a few of the regulations your dealership must follow. The best way to stay fully compliant is to have your compliance officer provide quarterly\u00a0trainings and audit sales files regularly.<\/p>\n As a disclaimer, it\u2019s worth mentioning that, although we do write about these topics with authority, this is not to be taken as legal advice or counsel. If you want to receive that kind of help (which you might want to), then there are plenty of consultants and lawyers tackling this field right now.<\/p>\n Do you have an opinion about a particular dealership compliance issue? Share your thoughts in the comments and let us know!<\/strong><\/p>\n![\"01-Dealership](\"https:\/\/www.autoraptor.com\/wp-content\/uploads\/2016\/04\/01-Dealership-Compliance-How-to-Know-if-Your-Dealership-is-At-Risk-01-300x300.png\" "\\"\\"")
<\/span><\/p>\n1. Assign a compliance officer to review and update your dealership\u2019s policies<\/h3>\n
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2. Review your Identity Theft Prevention Plan (ITPP) and train your staff<\/h3>\n
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3. Hire a legal consultant to pinpoint issues
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<\/strong><\/h3>\n4. Create a standard process for all your salespeople to streamline compliance<\/h3>\n
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Awareness and prevention are your greatest assets in dealership compliance<\/h3>\n
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We\u2019ve only skimmed the surface of the compliance issues facing car dealers today. The first thing you have to do is figure out where your weak points are\u2014 dig in and get to the problem before someone else does.\u00a0Add mandatory compliance training into\u00a0your routine\u00a0sales training<\/a> throughout the year.<\/p>\n\n\nInterested in an Affordable, Full-Featured Auto Dealer CRM?<\/h2>\n
Schedule an AutoRaptor Demo Now!<\/h3>\n<\/div>\n