It’s a good idea to get feedback from each department about which system functions are critical to the way they work and which ones are not. Features can be put into two camps, must have and would like to have. Bells and whistles are great, but they often cost more. So being knowledgeable about which features are absolutely necessary versus those that are negotiable will be useful when cost is an overriding consideration. In the course of making his decision, one dealer asked each department for their wish list of what they would want out of a computer system.

E-contracting is fast approaching as more and more lenders approve it. It will eliminate the cost of paper contracts, provide faster submission of the contract to the lender, and facilitate faster funding to your dealership. You should know whether any DMS you are considering will be able to provide you with this type of technology once you are ready for it.

Some DMS providers will save you money by allowing you to program your own forms. Others will require that they do it for you and will charge you for it.

Most of the data stored in the DMS belongs to the dealer; however, some DMS providers have legally noted that the data in the DMS belongs to them. If this is the case, you may have to ask permission in order to extract any data from the DMS. For example, if you use a third-party vendor for a web reporting application, that vendor would need permission from the DMS provider.

For instance, perhaps your service department wants to install software that would keep up with their parts inventory and pricing and provide quotes for the customer. You should know up front which software the DMS is compatible with.

Though it may sound like a negative feature, limitations on customization can help ensure that processes are done consistently and support to the system is manageable. Standardization can also protect the dealer from internal and external fraudulent behavior.

If you’re a dealership owner of a large group, you should consider a DMS provider that offers complete standardization of the DMS for each location. Ensuring that all data entered into your DMS is consistent will allow you to generate comprehensive, accurate reports throughout your stores.

One example of an integration option with the manufacturer would be access to service bulletins and recalls. Once the customer’s vehicle information and complaints are entered into the system, your service department would be notified immediately of any recalls or bulletins associated with this vehicle. Integration to third-party vendors is needed as well. For instance, software companies that provide additional F&I selling and reporting tools will have integration requirements. That third-party must be able to remotely access the DMS to retrieve and analyze data. These options could increase customer satisfaction and dealership profits.

Reporting options should be available in every department. For instance, maybe you need a report of all customers who are in a loaner car. Or maybe you want real-time sales reports. Your DMS should be able to provide you with such reports fairly quickly. If the DMS requires that you set the criteria for reporting rather than preformatted reports, generating the report could be tedious and time-consuming. On the other hand, make sure the preformatted reports aren’t limited so that you have access to exactly the type of reports you need to manage your dealership.

Upgrades and maintenance conducted by the DMS provider may require that you purchase a phone line dedicated just for them. So, you may have to have two separate phone lines, one for the DMS provider and one for the manufacturer or any other vendor that you allow to access your system. If the system must be shut down for upgrades, be sure to find out if this is done after dealership business hours.

DMS training may be offered at your dealership, at a remote location, or via the Web, so be sure to ask what your options are. If training is offered on site, ask how long the DMS trainers will be there. Also, make sure the department managers are involved in the planning process so that the dealership staff attends the training. Training must be mandatory for all dealership personnel in order to be effective.

Be sure to coordinate the installation with all parties involved: the DMS provider, the phone company, the Internet Service Provider, and the staff to get an accurate assessment of how long the entire installation will take. If you have a group of dealerships, be sure to get a time line for each dealership.

Your data is an invaluable asset to your business. Knowing how it will be handled in either scenario will go a long way toward protecting it. Be sure you know what the vendor’s migration plan is and what support services they will provide before, during, and after the data migration process. They should also tell you what the possible risks are and what steps they will take to protect your data. Additional questions you should ask include how and when the migration will be performed. Does it need to be done outside of business hours? How long will it take? Will the migration be performed on site or remotely? What members of your staff should be included or will be required?

It is always a good idea to get recommendations from your peers. Check out another dealership that has the system and get feedback.

When choosing your system, think long-term. You can always grow into a system, but one with limited capabilities now will only seem more limiting as your business grows and technology evolves. A good DMS will eliminate time consuming processes, give you more time to spend building a relationship with your customer, and provide you with the support and advanced technology you need in order to become a leader in the automotive industry.