Why Are Dealers So Frustrated With Their DMS?

Why Are Dealers So Frustrated With Their DMS?

Date

“I Hate how my DMS.” “No one on my team knows how to use the DMS.” “I never want to use a DMS again.” Regardless of how you say it, one thing is clear: dealers are tired of dealership management systems (DMS) and you can’t blame them. 

Before we dive in, dealership management system (DMS) is just a fancy word for the software that allows dealers to complete various day-to-day functions more efficiently. From completing service orders to invoicing, DMS has turned the manual digital. 

In talking with dealers in 2021, these are the reasons they’re not sticking with DMS in 2022.

1) They Want the Best Tech for the Job

Unfortunately, many DMS providers want dealers to learn their own, specially-created systems for various functions that can (and should be) outsourced. For instance, a specific DMS will create their own accounting solution or CRM instead of integrating with the leading, best of breed solutions. 

Not only are these “solutions” difficult to learn and implement, but oftentimes they force your dealership to start from scratch. Instead of just bringing over all of your information for Quickbooks Online or Shopify, your team is forced to learn a new system and redo the work you’ve already completed and the data you’ve inputted to a more capable solution. 

Your dealership deserves to have the right tools for the job in the palm of your hands (literally). That means industry-leading solutions – not an unverified accounting portal created by a DMS provider.

2) Costly Risks With Limited Rewards

DMS notoriously puts dealers in difficult financial situations. DMS traditionally comes with hefty upfront costs and even more burdensome costs overtime. How do these providers do it? They force their users into restrictive, long term contracts that are nearly impossible to break without significant financial penalties. 

Instead, many dealers are opting for systems that have flexible month-to-month contracts where they are only required to pay for the features they actually use.

3) Difficult to Use

It’s 2021, you no longer have to run your dealership on Windows 95 technology. Dealers are demanding a more intuitive system and interface that allows for quick cross training. DMS systems are traditionally clunky and are saddled with lengthy training periods and modules no one wants to sit through. Without proper training and motivation from your team, these systems are virtually impossible to implement. 

So What Can a Dealer Do about Their DMS Frustrations?

Fortunately, they have a few alternative solutions to choose from.

1) Cloud-Based DMS

Cloud-based DMS are rooted in traditional DMS, but come without the clunky, outdated hardware. They tend to be easier to use and have a more intuitive interface, as they are housed in the cloud or online. 

While cloud-based systems are certainly a step in the right direction from traditional DMS (heck, you can run your dealership from anywhere), they are still sometimes saddled with hefty start-up costs, restrictive contracts, and maintenance costs overtime.

2) Dealership Management Platforms

Dealer management platforms are the latest (and greatest) solution to the age-old DMS problem. Like cloud-based DMS, they are housed in the cloud and offer your dealership the flexibility of operating on a sleek, intuitive interface from anywhere in the world. Unlike cloud-based DMS (and traditional DMS) however, they provide flexible month-to-month contracts so you can run your dealership without the huge financial risk. 

The best part? Dealer management platforms offer dealers best in class integrations with world renowned solutions like QuickBooks Online, DP360, and Shopify, so you never have to settle for less. Leave duplicate data entry behind – you can bring over your world to your new dealership management solution in no time.

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