How electronic reg & title solutions help your dealership avoid costly fines and penalties
Missed compliance steps can be costly to your dealership’s bottom line. In today’s market, protecting profits with the proper compliance steps is more important than ever. According to Cox Automotive’s recent auto weekly summary from Jonathan Smoke, the volume of new-car sales is beginning to be affected as the Fed continues to raise interest rates.
Fewer transactions means every dollar counts. In 2023 and beyond, dealers must prioritize compliance to protect consumers and avoid the fines and administrative burdens that stem from enforcement actions.
With new state and federal regulations adding compliance responsibilities for dealerships, the 2023 Dealertrack Compliance Guide can help you navigate today’s complex regulatory environment — all the way through deal completion. Dealertrack’s complete suite of electronic registration and title solutions helps promote a culture of compliance to protect your customers, dealership and profits. Here’s how.
Safeguard customer data against identify theft.
Identify theft and data breaches affect millions of consumers each year. The FTC has responded by strengthening the Safeguards Rule with provisions that will go into effect in June of this year. Several states, including California, Colorado, and Virginia, have enacted new data privacy and security laws. Other states are expected to follow suit. Ensuring the security and confidentiality of consumers’ personal information is a main priority across regulatory agencies.
An in-state electronic registration and title process (ERT) helps mitigate risk by reducing paper-based processes. Transactions are completed and securely submitted online directly to the state, so customer information is never left sitting on dealership desks, or potentially exposed to theft while being couriered, mailed, or shipped for processing. As regulators continue to emphasize privacy and data security obligations, Dealertrack’s electronic registration and title solutions help support more secure deal completion.
Collect only the information needed to complete each deal.
Federal and state laws and regulations limit how dealers can collect, use and share non-public personal information. The FTC has brought hundreds of privacy-related enforcement proceedings over the past 15 years. Collecting too much information, or the wrong information, to complete a deal could put your dealership at risk for fines.
Dealertrack’s out-of-state registration and title solution includes an electronic checklist so you only collect the information, documents and forms needed for a particular customer and state. Solutions are also backed by audit services and dedicated support so errors or omissions can be flagged and corrected before submitting to the DMV. This minimizes the headaches of the registration and titling process for customers in any state, while reducing your compliance risk.
Protect against payoff surprises and customer complaints.
Increased federal and state regulations mean dealerships should expect continued scrutiny over all aspects of the business. This includes taking in and selling trades. It’s natural to want to move trades fast and optimize cash flow, but it’s risky to do it without the title in hand. Surprises such as an ex-spouse on the title can cause deals to unravel. In an extreme case, an upset customer could bring a complaint to the FTC against the dealer.
A digital solution like Dealertrack Accelerated Title® allows you to view the full title details before accepting a trade. This eliminates surprises and mitigates the risk that you’ll have to unwind a sale and take a hit to your bottom line — or even face regulatory fines.
Compliance is a critical priority for every dealer. Done properly, it can help you avoid fines and penalties from regulators and complaints from consumers. Dealertrack’s registration and title solutions help your dealership reduce risk all the way through deal completion so you can protect your profits.
We are proud to be the exclusively-endorsed Reg & Title partner of the Virginia Automobile Dealers Association (VADA). Schedule a no-obligation demo with Kim Haddaway, Regional Sales Manager for Virginia, to learn how Dealertrack’s suite of registration and title solutions can help with your dealership’s overall compliance and download the 2023 Dealertrack Compliance Guide for more compliance guidance.