Many dealership contracts are signed by not only the Dealer but the GM, service manager, sales manager, parts manager and body shop manager. If this is the case and it has been for many many years. This year is when the dealer should review every contract. Thats right pull every contract with every vendor. If you dont have it, get a copy from the vendor. If the vendor doesnt have contract or will not provide it for some reason send them a certified letter clearly stating your now on a day to day agreement. After pulling and acquiring these contracts review the terms. Are the terms acceptable with todays rates,products,costs or any other item you can renegotiate. Now the most important part. REVIEW the TERMINATION clause. Vendors of all sizes are wording contracts cleverly so that by the time your contract is done your automatically in another. Wordings, such as vendor needs a termination letter no sooner then 60 days before or no later then 30 days before contract ends. On a 5 year contract or more that makes it almost impossible to remember to send a termination letter until you've renegotiate the terms. And God forbid you were planning on going with a different vendor all together. So this is your solution. First no one should sign a contract except for the Dealer/Owner. Remember dealers/owners only, your executive manager is nothing more than a want to be dealer in many cases. He wants to be the factories friend in case a dealer point comesavailable. I hate to say this but in some cases back door monies are involved. If your the Dealer/Owner these funds passed to you maybe what you want. However in some cases GM's,Executive Mgr's, and managers can get there back door money if your not paying attention and have an open contract signing program.And you would be suprised how many dealers say, "he's been with me a long time I trust him, its okay for him to sign". I've seen thousands of dollars pass hands with vendors. Oil contracts are good ones. The vendor raises your oil price to whatever level the manager decides and the vendor sends the manager a fat check. Lets return to the review of ALL contracts. Now that you have them review the terms, prices etc. Now finally review and form your strategy for TERMINATION. If you can give the vendor one now effective term end, do so, and file a copy for yourself. If the vendor has the "trick termination terminology" create your termination notification strategy today. Perhaps create the termination letter today with the date necessary to end agreement even if its years away. Just make sure to date the letter within the termination agreement dates. Hold that letter in a safe or perhaps with your lawyer or accountant. Make sure they know you want it sent on the proper date. This is important if the contract doesnt end for a few years. Once you have done all the above make it a stated policy that only the owner signs contracts going forward. Your vendors may take offense but its your business your protecting. I'll end with this. I have a dealer friend that bought out the lincoln dealer a few years ago at the request of Ford so they could be dualed. He bought it from a friend. He however didnt review the DMS contract. Now ONE MILLION dollars and years later he maybe be able to get out of the contract. Doug Wolford DW Automotive consultant wolf0011@aol.com