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Top 5 Car Dealer Frustrations and How A Dealer Management System (DMS) Can Help

By: Natascia Vervena
April 21, 2021 1:05 PM

Working as a used car dealer can be extremely frustrating. There are tons of tasks on your daily agenda, and things don’t always run smoothly. If you want your dealership to operate fluidly you need cloud based automotive software such as Dealerpull DMS to address and eliminate
problems. From inaccurate pricing to inventory issues, here are the top 5 car dealer frustrations. How many of these are you experiencing?

1. Buying a Car You Thought Was A Good Deal but Can’t Find a Buyer at Any Price

Whether you are buying from a fleet, private seller, or auction, you need to be assured of the accurate description. Sellers often make mistakes when providing information on a vehicle. You might think you are purchasing a car in excellent shape from the original owner, when in fact it turns out to be a disgusting mess filled with cigarette butts and a broken clutch. It can be especially tricky if you are buying from a private seller since people may not always be truthful about the car’s history.

As a used car dealer, you can avoid purchasing a mistake by using a DMS. This cloud based automotive software will help you get the correct details of a car. How does a DMS prevent a bad purchase? A DMS can connect you to the Carfax report at the click of a mouse.

Carfax reports are easily downloadable in your DMS so you can check the historic details and compare them to the new ones to ensure accuracy. If all previous reports stated different information about the vehicle, you know something could be wrong. If it checks out, you will have the information stored in your DMS to buy the vehicle and get it ready for the next owner.

Having the correct information is vital since you don’t want to end up with a piece of junk cluttering up your already limited inventory space.

2. Putting the Wrong Price on A Car

As a used car dealer, it can be difficult to know the price of every vehicle on your lot. You might stick the wrong price on that 2015 BMW you just stocked. Perhaps you overlooked the particular model, confusing its value with a similar BMW in your inventory. All these numbers can get confusing and you might think the 325ix model is the same as the 325i or the 325e or
es. Though many specs of this car are the same, the price will vary drastically from model to model. Don’t let a customer walk away with a great deal because you couldn’t verify the correct information.

Cloud based automotive software like Dealerpull DMS keeps your inventory list on track and up to date. You can see the price for all your vehicle types in one place. Another great thing about this type of system is that it is visible to all departments. From sales to service and every department in between, a DMS allows everyone involved access to information on your entire inventory. If you have this kind of system, you can avoid the costly mistakes of selling a vehicle below cost. Since everyone in the dealership can see the vehicle details, someone might notice a mistake such as the aforementioned price error and can fix it before any customers see it.

3. Salespeople Not Proactively Creating New Business from Past Clients

Have you found there are no repeat customers from your used car dealership? Sales are dropping and you need to get more clients in your doors. Maybe the reason you are in this situation is that you haven’t maintained contact with previous clients. Past clients might be ready for a new vehicle from you but if you can’t remember what type of vehicle you sold and to whom, you won’t be able to connect with these clients. Referrals are another great way to create more business, but, again, if you don’t stay in contact with your clients, they tend to forget you.

Again, little details are extremely important and a DMS will help you immensely. Once you make a deal, the system will automatically create a customer profile. This profile provides information on clients as well as their purchase history. Your clients’ likes and dislikes are right in front of you. So, get on that sales floor and let your previous clients know you have a car in stock for them. Maybe they are not ready for a new vehicle, but someone they know might be in the market for one. When your DMS keeps you organized, you can bet your sales will improve.

4. Doubling Your Inventory

Did you just purchase the same vehicle you already have in stock? A used car dealer needs to have variety in the showroom for an array of different customers. You don’t want to make the mistake of buying too many vehicles of the same type. How do you avoid seeing double in your inventory list?

With a DMS like the one from Dealerpull, you have a digital garage that tells you what vehicles are in stock at all times. When one is sold, the system automatically updates to reflect the change in inventory. You are always in the know, eliminating the need to constantly double- check the physical stock or overbuy. Never have too many of the same vehicles in stock ever again!

5. When the Lender Retracts Financing Approval for Your Client After Working on the Deal for Days

It can be time-consuming working with lenders to ensure your clients get approval for their car loans. Retract the time and not the approval by getting your clients pre-qualified for financing. Dealerpull DMS is a system that connects you directly with lenders to help get your clients’ loans approved quickly. When you need an answer fast, all the information is right there at your fingertips.

It is easy to eliminate many of your car dealer frustrations. Are you ready to move your business forward into seamless productivity with the use of a DMS?


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