How to choose an automotive DMS system?

March 4th, 2010 by racing Leave a reply »

There are many service providers and softwares out there in the market today, however choosing the right one can be difficult. Here are few consideration factors one should be aware of before making the plunge and commitment.

1.    Cost – There is a wide range of products with very different cost factors involved. Most of the DMS systems are monthly subscription based. They can range from an incredible $4000 per month all the way down to $300. ADP for example has been the chosen service provider of DMS system for many dealers, their cost per month can range from 2000-3000. One of the newest player in the market called “Dealer Elite” on the other hand cost as little as $299 per month. With 0 installation or any setup fees.

2.    Technology – Don’t fool yourself into believing “If I pay more, it must be a better product.” That is not true at all, most of the payment will probably end up in support staff due to the poor design. Because the lack of IT support staff and general knowledge of technology, many dealers are stuck using a product that was literally developed in the mid 80’s but paying for a monthly bill that does not fit the bill. Without mentioning any big brand names here, some of the DMS providers out there have not improved their system since it was originally programmed in the 80s. Many are stuck using the first generation database design called “flat file” system that was outdated 15 years ago, while very few providers are into the second generation database design of “relational databases” with primary key attached. Not one provider are using the third generation “object oriented” database. There are many incompatibility issues arise from the system, some of the functions are completely out of reach for many dealers. While integration with their newer systems are a complete nightmare.

3.    Design – Searching through DMS service provider today on the market, you will soon realize many DMS systems are poorly programmed and designed right from the get go. Majority of the softwares has poorly designed interfaces, and redundant functionalities. Some even allow multiple point of data entry, and throwing basic database design right out of the window.

4.    Web Integration – Due to the technology involved to develop the program, many providers out there can’t be directly integrated with your existing website. This is due to several reasons. A) Outdated database that is incompatible with today’s standards. B) Security risks, due to the outdated software there are many security holes if the system is going to integrate with web. With today’s growing web presence a dealer’s real showroom is almost as important compare to the virtual showroom.

In conclusion, when it comes to pick the right DMS system for your dealership, take your time, consider all the factors. You can pay a hefty amount for good support, or pay very little without it. In today’s competitive automotive market the choice is up to you. For more information please visit http://www.dealerelites.com.

Advertisement

Leave a Reply