No Compliance Training? It’s All Risk, No Reward
Few things in the automotive industry can be more fluid than federal regulations and their corresponding compliance requirements. It’s so complicated and confusing that – according to Total Dealer Compliance – just 37% of dealers offer comprehensive compliance training to their employees. Furthermore, the same survey found that just 23% of dealerships employ a dedicated compliance officer.
This means that nearly two thirds of dealers are putting their entire businesses at risk by not implementing a formal employee compliance training program in place and resources. How, you might ask? The same research we mentioned earlier found that lack of compliance costs dealerships an average of $792,000 in lost profit. Could your dealership withstand such a blow?
But rather than talking about the potential cost of penalties, let’s talk about the profit you’re putting at risk by not enlisting compliance experts in your dealership. There are plenty of dealers out there who do it on their own. They research regulations, build out processes to remain compliant and stay on top of changes to laws. But this takes up countless hours of your time – hours you could be spending on your lot, selling cars and attracting new business. If you’re one of these dealers, the time you’re losing acquiring and moving inventory could easily outweigh any money spent on compliance training.
And let’s not forget about customer perception. Total Dealer Compliance also found that 77% of customers would refer a friend or family member to a dealership that makes compliance a priority. That is a lot of potential repeat and referral business.
So let’s recap. If you’re not utilizing compliance training, you’re not only putting your business at serious financial risk, you’re also taking away from profitable time spent elsewhere in the dealership and losing out on a serious amount of referral business.
If you haven’t already, it’s time to make compliance a priority – a top one.