July 29, 2021 Last updated July 29th, 2021 1,056 Reads share

Why a Dealership Needs Software or a Dealer Management System

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Constant advancements in technology are changing the way the auto industry does business. Dealers are recognizing the power that technology and automated systems have on their industry. It can help boost sales and increase productivity in a way that would have been impossible 50 years ago.

Dealer software and management systems are quickly becoming necessities in the auto industry. With more and more customers turning to the internet to research and purchase cars, it is essential that dealerships move online as well. With software and management systems to help organize, track, and chase leads, more and more used car dealerships are focusing on tech-based solutions.

Car Dealer Software

Car dealer software is software that automates both back and front-end functions in a car dealership to increase sales and boost productivity. This software takes care of things that were previously done by hand, like detailed inventory management to ensure accurate information on the cars, makes, models, and additional add-ons that your dealership has in stock for new and used cars.

It can help your dealership keep track of repair costs, create accident and credit reports, track financial information, and file contracts and warranties for easy accessibility. In general car dealer software streamlines operations so that more can be done using less manpower. It is designed to increase sales, nurture leads, and improve communication across departments and dealerships.

Dealership Management System

A dealership management system (DMS) takes dealer software a step further as it provides a suite of software tools to manage different aspects of your dealership all under one platform. Typically used by managers, the sales team, and office personnel, a DMS is convenient, easy to use, and cuts out inefficiencies that could be costing your dealership a sale.

Given the nature of today’s auto industry more and more customers are searching for vehicles online. What used to be an in-person, local shopping experience is now often virtual or even automated. A dealer management system can help your dealership manage its online presence and track customer interest in certain vehicles, monitoring web traffic on certain models to help develop a sales and marketing strategy.

A DMS improves customer satisfaction as it allows dealerships to customize their customer experience through data-driven decisions.

The functions of your DMS will depend on your individual needs and target points. It is customizable to your dealership. Below are key functions that a DMS can handle for your dealership.

Inventory Database

A DMS can take care of all your inventory needs. This is essential because there are so many more options for people to find cars so if they like your dealership but you don’t have the car they want they can go somewhere else easily. Don’t let that happen by keeping track of your inventory and constantly updating it to reflect price, availability, and trade-in opportunities.

Lead Management and Tracking

Bringing in leads is essential for a car dealership’s success. With a DMS you can build marketing strategies based on data to help determine what works and what doesn’t. Stay organized and efficient with a DMS.

Employee management

A dealership consists of many moving parts and different departments functioning as a team. A DMS can help you manage every department and employee for maximum productivity.

Credit checks

Access credit profiles and run credit reports easily. It’s all in one place and easy to file for future use.

Service request tracking

Keep track of service requests to ensure customers are being cared for timely and accurately.

Warranty information

Track and update warranty information easily.

Payment Processing

Dealership management services offer payment processing that makes it easy for customers to buy here pay here (BHPH). It’s a one-stop-shop that’s user-friendly for both the dealership and the customer.

Things to Consider

When deciding on the right car dealer software or dealership management system it’s worth considering a few things.

Your budget is the first thing to consider. There are many different options available depending on how much you are willing to invest. Some services are free while others can cost thousands per month.

Secondly, consider how you want to access your software. Do you want to use the cloud which typically offers more storage? Or would you prefer on-site software that could offer more security?

What about any existing programs? Do you need to convert or integrate email lists to new software? Some integrate better than others so make sure you choose software that is right for your existing programs.

In today’s tech-driven world mobile-friendly systems take your business a step further. Customers are more frequently relying on their cell phones to shop and make purchases. Consider using mobile-friendly software to manage your dealership from anywhere.


Car dealer software and dealership management systems will take your dealership to the next level. It’s easy, accessible, and gives your dealership a leg up on its competitors. With customized software all in one place, implementing a DMS will save you time and money in the long run.


Craig Toycen

Craig Toycen

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