Dealership Management System

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A Dealership Management System (DMS) is a software application which provides management tools to an automotive dealership.

There is a distinction between software which offers partial management and total management. Total management must include all aspects of running a dealership such as:

  • Tracking vehicle inventory
  • Tracking deals (vehicle sales)
  • F&I (Finance and Insurance calculations)
  • Tracking customers (and customer follow up)
  • Accounting
  • Managing dealer website
  • Calculating exployee commissions

If the dealer has a service department then the total DMS should also include:

  • Purchase order tracking
  • Parts inventory
  • Work order management
  • Appointment scheduling

Typically a total DMS includes a central server computer which stores all data allowing multi-user access with as many as 50 or more client computers. Some installations may include thin clients. Other DMS providers, such as Arkona, use a centrally-hosted, or ASP model.

Some new car dealerships used to be forced to use a certain DMS by the manufacturer. This, however, is no longer the case due to the Block Exemption Ruling.

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