DMS Selection & Analysis

Dealer Management System (DMS) Selection and Analysis

Auto dealerships in the United States and Canada have many different options of DMS’s to utilize to power you’re your dealership.  Choosing the right DMS is a critical decision for any dealership to ensure that:

• Your processes are properly supported by technology
• Your system supports your selling process as well as from a bottom-line perspectives
• You can efficiently and effectively account for your business
• All key components of your system are synchronized and aligned from a data perspective.

In the United States and Canada there are a large number of DMS companies that provide different levels of support and functionality for many different types of dealers. Some of the DMS companies in the United States and Canada include:

Intersection Technologies, Inc – F&IConsult Division has staff with 100+ years experience in the DMS world and has developed a DMS Selection Process to assist dealerships in making the right decision, with the right functionality, and at the right cost. We will work with the dealer to determine the right system, with the right functionality, at the right cost.

The process will look at a number of critical components of selling cars today including:

• Gap analysis is existing system(s) that are currently in use by the dealership.
• Integration touch points with third parties from OEM’s, front end systems, F&I providers, etc.
• Reporting and accounting needs.
• Activity Based Costing (ABC) analysis of existing process to determine the cost of managing the dealership business today at a granular level.
• Full cost of system(s) today in use by the dealership.  This will incorporate all costs from the monthly fees, print or form fees, hardware costs, integration costs, etc.
• Marketing strategy and how the dealer systems support your marketing strategy today.

When dealers are looking at changing their Dealer Management System (DMS) there are important things to consider avoiding making the BIG MISTAKE. They include:

1. A dealer should always have either internal employee or an outside consultant to lead the project through a systematic approach.  This person should understand the business of selling cars as well as technology.
2. When changes are made in systems, very often dealers DO NOT cancel hardware or maintenance agreements that were in place and it ends up costing the dealership thousands of dollars.
3. If other add on systems are connected to core DMS, all contracts should be co-terminus.
4. The term of the contract is critical and should be a core part of the negotiations.
5. Many contracts have price escalators during the term of the contract that go unnoticed until the dealer gets an increase to their monthly costs.
6. Make sure there is a “performance addendum’ for all new products that are a part of the contract.
7. Make sure that if the dealership is switching Dealer Management Systems, that there is a clear strategy for transferring the existing customer database before you inform the existing DMS provider of a change.

Dealer Management System (DMS) Billing and Analysis

The DMS for most auto dealers represents one of the largest expense items for any dealership.  A recent survey of dealerships have found that over 50% of car dealership are receiving and paying inaccurate monthly billing from their DMS provider.  Many of these errors are result:

• Duplicate billings on the same item
• Accidental over charging of services
• Etc.

We can help you by……
DMS –  ADP / Reynolds & Reynolds / Other Vendors

• Review invoices in detail
• Identify contract discrepancies and over charges
• Identify duplication and overlap of products and services
• Recommend cost saving adjustments

To learn more about how F&IConsult can help your dealership select the right DMS contact us here.