Auto dealerships that are not compliant tend to feel the impact directly in their profit, loss and reputation. Without a comprehensive compliance training program, car dealers’ bottom line is truly affected. More than 73% of consumers are more comfortable dealing with dealership staff that has completed compliance training and has certificates of completion on display.

Dealers need to understand that a partial solution is not the answer.  The average dealer is more likely attuned to consumer lawsuits than compliance violations that lead to these lawsuits. However, risk surrounds the entire dealership and less than 25% of dealers employ a Compliance Officer. A complete program will ensure better sales and overall performance as a company.

There are Federal regulations that apply to all departments of the dealership and having a comprehensive approach to compliance is the only way to improve the reputation of the dealership and change organizational culture. Compliance Program should contain written policy, training and activity requirements. These requirements are easily identified and enforced regulations that, if not followed, can result in tremendous fines.

Improving compliance should address the following categories: environmental, health & safety, operational procedures, deployment verification and audits with a solid online paper trail.

Compliance is becoming an increasingly important issue. More than 80% of dealers think that compliance training and implementation will improve their dealership’s reputation in the community and relationships with customers. Below are suggestions on what dealers need to do to get up to speed.

Employee Training

Dealerships should provide employees with online classes to better understand compliance rules and key factors that affect their career growth. These online courses are designed to educate those on Federal Compliance Regulations, Best practices, as well as corresponding policies and procedure. Training instills a culture of compliance and keeps employees accountable.

Operational Procedures 
One example of Operational Procedures is the Identity Theft Prevention Program. It is imperative for a car dealership to implement an Identity Theft Prevention Program (ITPP). By the time an identity thief walks onto the showroom floor, the identity theft has already occurred. A dealer should be prepared in advance if an investigator or plaintiff’s lawyer asks to see a copy of your ITPP. Dealers must train employees on the dealership’s operational policy, which must cover the dealership’s processes to detect and mitigate identity theft.

With online training programs, dealers are able to identify which employees are trained and their understanding of identity theft. Having an electronic paper trail regarding identity theft and updated ITPP report will not only showcase a high level of operational procedure but will help customers feel safe when handing over their confidential financial information.

Deployment Verification 
Every dealership should have an employee handbook setting forth the dealership’s internal policies and procedures. A dealership may even have specialized, job-specific policy manuals (F&I, sales, etc.). Having these materials available on the dealership intranet is a great way to help employees stay current with policy and again, helps consumers feel confident about their dealership

Audits and Paper Trails
Another example is the The Safeguards Rule, which requires that dealerships develop a written Information Security Program (ISP) requires a risk assessment, oversight of service providers, and regular reviews of the ISP’s effectiveness. This provides a paper trail should your dealership get audited. Hiring a third-party audit company is extremely beneficial to assess dealership needs and no compliance program is complete without it.

In conclusion, for a dealership to remain competitive and remain a top choice for consumers, they must be 100% compliant. By instilling a culture of compliance there is increased production, sales and promotes a positive reputation. By remaining non-compliant or only partially compliant, dealers will remain risk for huge profit or loss.