Top 5 Features to Look for in a Dealer Management System Provider

Top dealer management systems provide functionality that increases sales through state-of-the-art technology. While it’s easy to be swayed away from extensive functionality in return for cheaper pricing, shortcuts rarely pay off in the long run. The best DMS solutions include every tool you need on one fully integrated platform. This lets you view and monitor your daily business operations to identify profit drains.


A DMS should protect a dealership’s valuable customer data from hackers and other threats. A reputable dealer management system provider should have a robust security infrastructure and encryption protocols to keep sensitive information out of the hands of cyber attackers. DMS also should help dealers streamline processes to save time and money. For example, a car DMS can help dealers reduce paperwork by allowing them to manage sales orders, inventory, and accounting through one platform. This saves dealers from the hassle of manual input and ensures that the data is accurate and up-to-date. It can also eliminate errors like duplicate customers due to oversights during data entry.

Another example is that when a new vehicle is added to the system, a VIN can be scanned to pull in service history records for the car automatically. It can also make it easier for showroom sales executives to close deals and for service advisors to find past repairs. This helps them provide better service and increase customer satisfaction.


The way a dealer management system works for dealers should be user-friendly. A dealer platform should be designed with all departments in mind, which includes sales and service. Having an easy way for salespeople to manage their pipeline and customer interactions is crucial in getting more deals closed. Parts management is also essential, allowing dealerships to streamline the order process. A dealership that does not have this functionality can lose a competitive edge with competitors who do. A good DMS should provide tools for capturing feedback and reviews, which can help businesses build a positive reputation.

Additionally, a DMS should have robust security features that can protect data from unauthorized access and help prevent data breaches. Another consideration is whether the DMS can be scalable as the business grows. This is especially important for dealerships that have multiple locations or franchises. A good DMS provider should offer support even after the initial implementation, which can make a difference in keeping the dealership running smoothly.


A dealer management system is used to streamline business processes within dealerships by providing a single platform that connects and manages multiple tools, eliminating the need for separate systems. It also improves productivity by giving all departments access to a complete and updated database. When deciding on a car dealership software solution, consider its ability to integrate with third-party services. Many providers limit integration by charging hefty fees or restricting functionality. Still, the best dealer management systems have unfettered integration with any third-party technologies you may want to use in the future.

Spare parts management is an essential feature in the dealership software, mainly for equipment dealers. Dealerships need a clear insight into the availability of specific replacement parts and what stock should be maintained at each location. A perfect dealership system eliminates senseless paperwork and boosts performance by encouraging a practical, friendly way of working and ensuring proper transaction information. It helps manage appointments and is available to serve customers 24/7. In addition, managing customer relationships is highly beneficial, making the experience much more personal.


Regardless of which type of software and data services a dealership uses, the dealership’s core systems need to integrate seamlessly. A dealer management system should allow easy integration with other technologies such as accounting software, financing and loan tracking tools, inventory control, customer relationship management (CRM) solutions, marketing automation platforms, analytics programs, and point-of-sale (POS) systems. Choosing a dealer management system with all these features is essential to a smooth business operation. However, dealerships must choose a solution that fits their criteria rather than a generic one with many “shiny objects.”

Once a dealership has chosen a provider, they should request references from past customers and ask questions to ensure that the provider’s claims are realistic. When a dealership’s core systems are integrated, it allows the business to provide a personalized, exemplary customer experience and improve customer retention. The ability to track more lead information also enables dealerships to explore potential new marketing strategies and financial performance. This data can be used to increase sales and grow a business.


As a dealership, your business needs to be efficient to remain competitive. You can minimize wasted time with an all-in-one dealer management system that streamlines inventory functions like sales, service, finance, insurance, and warehouse inventory into one easy-to-use software tool to save your team valuable resources and money. For example, a DMS lets you create repair orders (ROs) online and track parts/service inventory in real time. This provides visibility into the entire process so managers can monitor and adjust business practices at a centralized location or franchise level to balance local performance with whole-company success.

When selecting a DMS, look for a provider that provides secure and real-time integration with any third-party tools you may need. This can include mobile write-up services, IoT sensors, warranty systems, and loyalty management programs. It would be best to choose a vendor that doesn’t handcuff you by charging high fees or restricting integrations, as this can prevent your dealership from leveraging the latest technologies to improve operational efficiency and customer satisfaction. Ultimately, your DMS should be your central data repository that can be easily shared with other departments for better service and a legendary customer experience.