- Record keeping is crucial to tracking financed vehicles accurately in a dealership.
- Utilize technology, such as monitoring software and automated payment tracking, to streamline the process.
- Reporting and metrics can provide insights into financing, sales trends, and inventory turnover rates.
- Asset verification is essential and should focus on physical inspections of the vehicle inventory.
As a dealership owner, you are aware that tracking financed vehicles is one of the essential tasks to ensure your business’s profitability. Besides managing car sales, you must also follow and monitor your inventory to avoid any legal or financial problems. Keeping track of your financed vehicles is also crucial to prevent fraud and identify potential risks in the lending process. Here are some of the best practices for car dealerships to track their financed vehicles efficiently.
Record Keeping:
Proper record-keeping is a crucial aspect of tracking financed vehicles in your dealership. Ensure you have accurate documentation of financing contracts, loan repayments, and any other pertinent details.
Keep these records secure and easily accessible for financial reporting and auditing purposes. Failure to maintain accurate records can lead to errors in financial reports and potentially harm your dealership’s reputation.
If possible, use a software system to track your vehicle financing and loan repayments. This way, you can easily review the data and quickly identify any discrepancies or potential issues.
Utilize Technology:
There are a variety of technologies available to dealerships that can help you monitor your vehicles’ whereabouts. By investing in these technologies, you can easily keep tabs on each individual car in your dealership. Here are some ideas:
Tracking Software:
Invest in the right vehicle inventory management system that allows you to track your financed cars in real time. There are now buy-here-pay-here GPS tracking devices that can monitor and manage vehicle inventory from one location, including recording secured agreements, loan balances, and payment history. An automated software system can help prevent human error, streamline your record-keeping process, and provide you with instant access to real-time data.
Automated Payment Tracking:
Automated payment tracking can improve efficiency and reduce errors in recording vehicle loan payments. Utilizing an automated system reduces the need for manual reconciliation, which can consume valuable time and resources. Automatic payment tracking can also help detect potentially fraudulent activity and minimize the risk of financial loss.
Reporting and Metrics:
Use reporting and metrics to analyze sales trends and track inventory usage. This data can provide insights into financing and the types of vehicles attracting buyers.
Furthermore, compiling data on strategic sale periods can help dealerships project future sales and analyze their inventory turnover rates. Additionally, financial reporting can help detect areas of inefficiency, allowing dealers to implement measures to improve their lending processes.
Asset Verification:
Asset verification is an essential aspect of tracking financed vehicles. Conduct periodic physical inspections of your vehicle inventory to ensure they match your financial records. This practice can help detect and prevent any discrepancy in your dealership’s inventory. Here are some things to focus on in your inspections:
Signs of Damage or Wear and Tear
When conducting physical inspections of your financed vehicles, be on the lookout for signs of damage or wear and tear. This includes checking the bodywork, tires, brakes, and engine parts.
By detecting any maintenance needs early, you can save money on costly repairs later on. This also allows you to provide potential buyers with accurate information about the vehicle’s condition. Additionally, inspecting for signs of wear and tear can help keep your inventory pristine, leading to happier customers and potentially higher profits.
Your Financial Records
Be sure to conduct regular checks of your financial records and loan payments. Confirm that the numbers match up with the actual vehicles in your inventory and that payments are being made on time. This is a crucial step for tracking financed vehicles properly and ensuring there are no discrepancies in your dealership’s accounts.
All Necessary Paperwork
Lastly, ensure you have all the necessary paperwork for each vehicle in your inventory. This includes titles, insurance policies, service records, loan agreements, and any other documents relevant to the purchase. Additionally, double-check your paperwork for accuracy to reduce the risk of fraud or errors in reporting.
Properly tracking your financed vehicles is critical to your dealership’s success. Implementing the best practices mentioned in this blog can help dealerships decrease the likelihood of financial errors, reduce fraud, and optimize inventory management. Utilize suitable software systems, maintain accurate documentation, and conduct regular physical asset verification. Incorporating these best practices can help dealerships reduce the risk of financial loss, improve efficiency and help to drive profitability.
