Lot Logic: Winning Strategies for Complete Dealership Compliance

Our ongoing series on advertising sales and finance compliance for dealers has reached a critical stage: Step 8—Lot Management Assessment. This step ensures that your physical dealership space is as compliant as your digital presence. Let’s explore why this is crucial and how to implement an effective assessment strategy.

The Importance of Lot Management Assessments

Your dealership’s lot is more than just a showcase for your vehicles – it’s a compliance battlefield. A thorough lot management assessment helps you:

Ensure legal compliance
Maintain consistency between physical and online presentations
Prevent potential losses
Create a professional and trustworthy environment for customers

Key Areas of Focus

New Vehicle Documentation

Proper documentation is crucial when it comes to new vehicles. This primarily involves the Monroney stickers, which must be properly posted on all new vehicles. These stickers are more than just a legal requirement; they provide crucial information about the vehicle’s features, fuel economy, and pricing to potential buyers. Regular checks should be conducted to ensure these stickers are present, legible, and accurately reflect the vehicle’s specifications.

Used Vehicle Documentation

For used vehicles, the focus shifts to FTC Buyers Guides. These guides are vital in providing transparent information to used car buyers. Your assessment should verify that these guides are posted on all used vehicles, and it’s not enough to simply have them present. You must ensure they are the correct and current version, properly completed with all necessary information, and displayed correctly on each vehicle. This attention to detail demonstrates your commitment to transparency and fair dealing.

Key FOB Control

Proper key FOB management might seem small, but it’s crucial for security and loss prevention. Implementing and regularly assessing key FOB control procedures helps prevent potential losses and maintains the security of your inventory. This includes tracking who has access to key FOBs, how they’re stored when not in use, and procedures for their return after test drives or other uses.

Dealer Plate and Temporary Tag Inspections

Dealer plates and temporary tags are another area where regular inspections are vital. These items are subject to specific regulations, and misuse can lead to significant legal issues. Your assessment should include regular inspections of dealer plates and temporary tags to ensure the correct processes are followed for their use and display. This includes tracking their assignment to vehicles, ensuring proper documentation for their use, and verifying they’re only used as permitted by law.

Dealership Signage

The signage throughout your dealership does more than just provide information – it’s also a compliance issue. Your lot management assessment should include a thorough review of all dealership signage. This encompasses both regulatory signs required by law and informational displays. Ensure that all required signs are present, correctly placed, and up-to-date with current regulations. Also, check that informational signs accurately reflect your current policies and offerings.

Price Consistency Check

One of the most critical aspects of your lot management assessment is ensuring price consistency between your physical lot and your online presence. This involves comparing the prices on window stickers with those listed on your website. In today’s digital age, customers often research online before visiting a dealership, and any discrepancy between online and on-lot pricing can lead to distrust and potential legal issues. Regular checks to ensure this consistency aid in compliance and build customer trust.

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Is Your Advertising in Compliance with FTC Regulations? Find out with this Dealership Advertising Cheat Sheet.

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Implementing Your Lot Management Assessment

Create a Checklist

Develop a comprehensive checklist covering all areas mentioned above

Documentation

Keep detailed records of each assessment, noting issues and resolutions

Regular Walkthroughs

Schedule frequent lot walkthroughs to assess compliance

Training

Use assessment results to inform and improve staff training

Cross-Departmental Involvement

Include team members from sales, finance, and management in the assessment process

The Digital Connection

Remember, your lot management doesn’t exist in isolation. It’s intrinsically linked to your online presence. The price consistency check between window stickers and website listings is a crucial bridge between your physical and digital compliance efforts.

Compliance in Motion: Keeping Your Dealership’s Lot in Compliance

Lot management assessment is not a one-time task but an ongoing process. Regular assessments help create a culture of compliance that extends from your digital presence to your physical lot. By maintaining vigilance in your lot management, you’re not just ticking boxes – you’re building trust with customers and regulators.

Remember, a well-managed lot is a testament to your dealership’s commitment to transparency and fair dealing. It’s the physical manifestation of your compliance efforts, visible to every customer who walks through your doors.

Stay proactive, keep your assessments regular, and always be ready to adapt to new regulations or best practices. Your dedication to thorough lot management today can prevent headaches – and potentially costly issues – down the road.

KPA helps dealers limit liability from the first contact to deal close.

With our complete compliance system and a team of advertising, sales, and finance compliance experts to guide you, protect your dealership, save money, and recapture countless hours of wasted time.

This structured approach ensures that dealerships are compliant and continually improve their compliance practices, leading to safer, more trustworthy operations.

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Next week let’s look at Licenses and Permits.

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