How To Develop An Automotive Dealer Management System (DMS)?

We have traditionally run our businesses in offline mode, through a physical store or outlet. But, as more and more offline enterprises are shifting online for enhanced presence and online visibility, nowadays, almost every industry vertical, including automotive DMS development, has chosen this digital shift. Car dealership businesses fall into the same category, making great use of the Automotive Dealer Management System.

Car dealership businesses are transforming to get an enhanced online presence, focusing on aspects like car dealership management system development. If you are also choosing dealership management software or develop a dealer management system for your business, you are good to go. It will assist you with a large audience and customers, as online buyers will reach you besides offline customers. It will boost your revenue with increased sales and profit. 

By 2027, the automotive software market will likely reach around $43.5 billion from $18.5 billion recorded in 2019. These figures say it all. You can also develop an automotive dealer management solution that may suit your business and increase your ROI. 

This post includes the best solutions that may help build automotive dealer management solutions. 

What is the Automotive Dealer Management System (DMS)?

A Dealer Management System (DMS) is crucial for car dealership management system development as it helps meet varied needs, including essential areas, such as pre-sales (lead/inquiry management), purchasing, inventory management, sales, CRM, HR, and financial accounting. Besides, it connects distributors, OEMs and companies, customers, and dealers, offering a seamless and enhanced operational experience. A DMS or dealer management system is a dealers’ ERP facilitating dealers to perform their routine operations effectively. 

How does an Automotive DMS ease Business Operations? 

An efficient dealer management system can make a notable difference to your car sales business.. It will ensure that vehicle pricing, warranty claims, inventory, administration, and creating credit reports benefit your business. 

A good car dealership software can enhance a business structure through the operation and combination of all the tools of a single online platform. Your dealership’s handling and routine transactions become easier to run your business, and you are not required to handle all the transactions separately and conduct inventory management. 

Below are the points that would assist you in knowing how efficient dealership management software will ease business operations. 

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1. Marketing 

Efficient features are required to design great marketing campaigns and run them perfectly. Such a feature assists campaign managers in implementing a suitable approach to auto retail for existing and potential customers. This way, they can boost customers’ loyalty by deploying benefits programs and rewards that will lead to better customer returns. 

2. Contact Management System

This DMS feature offers the most manageable database for storing customer details and relevant documentation, like repair history and appointments. It will facilitate businesses to provide a personalized customer experience to meet their expectations and increase customer loyalty.

3. Inventory Management System

You can know what’s available in a batch through this inventory control function anytime. Besides, you can keep track of the parts left at your spot. A DMS helps automate inventory management systems, thereby avoiding any need to process the transactions separately to manage inventory. 

4. Accounting

Advanced and robust dealership accounting software assists you in closely tracking every point of your dealership, like part invoices, transactions, services, etc. Some good examples of small car dealership software for accounting are QuickBooks Desktop Pro Software, NetSuite Software, and Xero Software.

5. Payments

The booking system of dealer management systems is a robust solution that automates the shared fleet management and eases car reservations. 

6. Sales Automation

Using a dealer lead distribution system, you can quickly and better understand the source of your leads and how to close them. It boosts your ROI across every channel and lets you distribute your marketing budget efficiently. 

7. Desking

Auto dealer desking software assists in determining the alternative deal schemes and the best terms for your clients according to their credit score. 

8. Rental Management

Car rentals hold varied parameter sets and thus have more different documentation than direct sales. Some CRMs also offer specific features for tracking rentals, like repairs and payments. Such a rental management feature helps increase efficiency, improve customer experience, and access real-time rental updates. 

9. Workflow Automation

A key objective of workflow automation is the standardization of corporate procedures. It emerges from a collection of calendars, to-do lists, templates, and notifications. 

For example, when we mark a task as completed, the software can automatically perform task configuration for the next phase in the process. Dealer stock management, including various car dealership departments, can be important for sales. 

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Better Startup Ecosystem And EV Revolution Posting High Demand For Custom Dealer Management System

The below benefits of a custom DMS increase the adoption of such dealer management systems among startup ecosystems and EV brands:

• A DMS system helps monitor and record the fulfillment of the customers’ needs. 
• Also, it holds the functionality of encouraging more utilization and more considerable revenue. 
• Such systems meet the need for customer satisfaction requirements. 
• The Vehicle dealership management system includes managing and handling sales and after-sales activities.
• This system lets you be free from unnecessary paperwork and boosts your performance. 
• It handles appointments perfectly and assures friendly communication between the departments. 
• You can also attain future targets by crafting a friendly and effective way of interaction and with accurate transaction information. 
• This way, a good DMS would assist you in saving lots of money, thus making your business profitable. 

Why Invest in Automotive DMS Software – Industry Size and Market Stats

In 2019, the automatic software market was reported to be $18.5 billion; by 2027, it’s likely to reach approximately $43.5 billion. 

Automotive software meets the needs of in-vehicle embedded systems, including various features, like advanced driver assistance systems (ADAS), body control and comfort, telematics, communication, safety, powertrain, and infotainment. 

Witnessing these figures, we can predict the automotive industry will soon reach a point where cars communicate with each other and drivers. 

Such technological advancements have appeared as a big challenge for automotive developers to build automotive software solutions that may ease customers. The features and factors in vehicles have led to increased integration of innovative technologies and the adoption of connected car services that are likely to drive market growth in Vehicle dealership management system development.

Top Automotive Dealership Management Systems in the market

AutoServe

Digital vehicle inspection software, AutoServe, helps translate your inspection findings from your technicians into precise recommendations for your customers to make them feel empowered to make educated decisions quickly. You can build customers’ trust by sending detailed digital vehicle inspection reports directly to their smart devices. 

Features

• It helps technicians get trained faster and, this way increases workflow efficiency. 
• Service advisors can use this vehicle dealership management system to craft repair estimates while technicians conduct inspections. 
• Easy-to-understand reports help customers make informed decisions. 
• It educates customers and builds trust and relationships. 
• It closes the communication gap between vehicle owners and the service bay through its complete vehicle inspection checklists. 
• It helps make auto repair shops communicative and productive, attracting repeat customers for their vehicle maintenance and repairs. 

DealerCenter

One of the best all-in-one cloud-based dealer management systems, DealerCenter’s industry-leading technology avails all the tools you want on a single platform, easing you to run your business. It arrives with a broad toolset to assist you in expanding your inventory exposure. Its CRM suite offers prospecting, reporting, and automation to enhance your lead engagement and conversions. 

Features

• It increases closing rates and benefits by offering online car shoppers the expected experience. 

• This car dealership software assists you harness the strength of your data to optimize your dealership’s data.
• Also, it analyzes marketing expenses and customer data to check ROI from your advertising budget rapidly. 
• This software easily creates custom reports and dashboards to know all the aspects of your dealership’s performance. 
• Moreover, it increases exposure and helps generate more leads with its automated classified listing posting, SEM/PPC, and On-Site SEO. 
• The websites of DealerCenter are crafted keeping mobile users in mind to transform your business with custom and fast built, secured with a free SSL Certificate.

eLead CRM

To perform smarter and grow faster, you need to sync your data. Whatever Vehicle dealership management system you use, eLead helps you shut the loop between departments of your dealership with secure, safe, and certified integrations. 

Features

• You can generate more leads and handle them effectively using eLead. 
• Also, this software can create more productive communication with your customers. 
• This system helps in driving customer retention and strengthening loyalty.
• It assists with faster integrations with major DMS and data providers. 

Dealertrack

Supported by Cox Automotive, Dealertrack offers solutions that manage your dealership, your tiling processes, and F&I to boost profitability and increase customer satisfaction. 

Features

• With this DMS, you can develop an adaptable, flexible dealership to drive profits and satisfy customers on any purchase journey. 
• It arrives with industry-leading services and technology solutions that increase efficiency across the loan lifecycle. 
• Dealertrack links dealers with lenders in the top indirect financing network, flawlessly integrated with leading loan origination systems.
• Also, this DMS handles electronic and paper titles over the term of loan or lease.
• Easiest-to-use DMS, Dealertrack is a profit-driver. 

DX1

The only Powersports dealership management solution, DX1, offers you access to almost everything you require to handle and market your Powersports or motorcycle dealership, including a DMS, website & online marketing tools, and a lead manager. It saves time and provides an efficient dashboard, one login, and a single database where inventory and customer data are stored. 

Features

• You can schedule your automatic email delivery reports
• You can increase exposure by promoting your inventory on various online marketing websites. 
• Also, this DMS helps you log in and out of various systems more. 
• There’s no more concern over missing or lost data, as your data is automatically protected and safe in multiple locations. 
• You can market your inventory by optimizing the listing available on DX1.
• Moreover, you can access this DMS anytime, anywhere, from any internet-enabled device. 

Text2Drive

A leading communication platform, Text2Drive is proven to boost CSI Scores and revenue, dramatically enhancing customer satisfaction and increasing profitability. Its service reminders, two-way texting for scheduling, bill pay, recall notices, and more features make it the #1 dealer communication platform. 

Features

• It helps elevate CSI scores.
• This communication platform streamlines your service departments. 
• It drives more sales through its automated lease expiration communication, lead generation, and more.
• You can save your dealership’s efforts and time as it automates manual information entry. 
• You can get a customer’s report influenced by recalls and notify them to boost your profits and efficiency. 
• Its intuitive and simple interface assists you in performing seamlessly with your Vehicle dealership management system. 

Attributes of a Successful Automotive DMS Development

A successful automotive DMS Development needs to hold the following attributes:

Ease of Business

A DMS should offer multiple functionalities that OEMs, brands, and their supply chain partners need. The solution should meet stakeholders’ needs in the supply chain, which ease performing business. A customized solution is often essential to fulfill customers’ expectations. 

Flexible And Agile By Design

A dealer management system should be scalable, accommodating more numbers and types of users and business needs. It must be agile and flexible by design. 

In some recent cases, we noticed that the current DMS is not sufficiently scalable in such aspects that emerge as a drawback. The microservices-based API-first architecture can assist in accomplishing these goals. 

API for Business Operations

Peripheral apps share data with the dealership management software or demand data. Many ERP apps, mobile apps, CRM apps, warranty systems, IoT apps, loyalty management systems, and more exchange data with DMS. The centralized API gateway allows easy connection with these apps according to business needs. 

Prompt and Responsive

Traditional dealership management solutions take a long time to build trust with the users. A new-gen DMS needs to offer various modes of connection with its users and, therefore, offer faster resolutions to their problems. Rapid time-to-market and TAT (Turnaround Time) will assist OEMs in implementing business needs efficiently, boosting trust. 

Anytime Anywhere Access

The presence of omnichannel is the moment’s requirement, and like other solutions, it’s also a must for dealership management software apps. 

For example, when a DMS is being accessed remotely with a connectivity issue, it’s necessary to access the app through multiple form factors, specifically from mobile devices that can ease offline access. 

Custom-Built DMS vs. Ready-to-Use DMS Software

Custom Dealer Management System

Custom DMS automotive customized as per the business needs and requests. Specifically, large enterprises look for software that is best suitable for their business processes to keep them running and updated. 

Ready-to-Use Dealer Management System

Standard software is usually ready-to-use, built by dealer management software brands, and released for individual consumers and enterprises. Such software is recommended for start-up brands. But even being easy to use, it doesn’t fulfill unique business requirements because of some missing features that surfaced the need for custom software. 

On-Site SaaS System vs. Cloud-Hosted SaaS DMS

On-Site SaaS

A framework that offers internet software as a facility is the on-site SaaS. It allows easy internet access to the device without the need for program installation or maintenance. This way, you get rid of hardware maintenance and highly complex programs. 

Such a program is a device you can run in the cloud and through the web browser. You may consider this an on-site SaaS-based app as it offers you the broadest stack of computing that’s cost-efficient. This can be hosted centrally and distributed in such a way that it fulfills varied demands to let your business flourish.

Cloud Hosted SaaS 

It’s a cloud-based infrastructure framework boarded in the cloud and developed to exchange data. Because of various technical advancements, you can host storage and servers in this framework. Its vertical scalability makes it the most preferred framework, and consumers can access any functions and resources on request. It automatically offers patches that are important in patch management. 

3rd Party Integration To Enhance Automotive DMS Functionality

Third-party integration is essential for running your auto dealer management system successfully. It assists you in advancing and efficiently managing your operations and transactions while offering good customer satisfaction, boosting retention rates, and diminishing abandonment transactions. 

On-site payment gateways, multichannel inventory management system, social media, customer support,  rating and feedback software, multichannel inventory management system, customer relationship management, analytics, and other integrations will assist in accelerating the progress of your business. So, remember to integrate such third-party systems or software while developing your dealership management software. 

Below is the list of various 3rd-party integrations you may add to your DMS.

ERP Integration

This 3rd-party integration holds multi-channel nature and serves the basics to run an automotive dealer management system successfully. ERP aids in handling items that large enterprises wish to sell with better customer-specific pricing, greater availability in sales, inventory management, and order processing.

POS Integration

Again, this third-party integration is multi-channel; that’s the connection between a DMS automotive accounting and operations platform, which can pull varied, detailed data in real-time, and quickly. 

CRM Integration

It deals with customer relationship management (CRM) and offers a better understanding of channel management. Furthermore, it assists in translating some value-added interactions with users coming to the website, with the pre-sales communication provision,  good post-sale service, support, and standard sales interaction with customers. 

RMA Reporting and Flow

A return merchandise authorization (RMA) feature of third-party integration deals with the return of purchased vehicles and automobiles because of some issues. Also, it assists the customers in getting a replacement, refund, or repair within the vehicle’s warranty period. 

ChatBot Integration

This type of 3rd-party integration is a robust assistant to eCommerce DMS. It engages interested customers and passive visitors using varied smart prompts and instant messaging responses. 

Moreover, such integrations help solve customers’ questions and queries relevant to a specific vehicle just by chatting on the site of the vehicle dealership management system. This way, it progressively leads to increased sales and excellence that add to overall revenue. 

Smart Search Integration

It’s a 3rd-party integration feature that offers efficient product labeling related to charts, avoiding confusion. It assists in easing buyers in searching for vehicles and related parts they want on the website. 

Other – Mobile apps, IoT applications, warranty systems, loyalty management systems

Such integrations help in data exchange with dealer management solutions. These can be connected flexibly with your DMS according to your business requirements making management and monitoring easier. 

How To Develop An Vehicle Dealership Management System

You can develop automotive dealership management software in three ways:

Develop From the Scratch (Python, PHP, .Net, Ruby)

You can develop an Vehicle dealership management system from scratch, customized and crafted with the hand-coded site. So, developing software from scratch means the site is built according to the client’s requirements using core language and including their specific business needs for an auto dealership system management software. 

Develop Using CRM Platform (Salesforce)

CRM systems facilitate automobile companies to automate reminders about vehicle servicing, insurance renewal, new discounts/offers, and much more. Besides, using a CRM platform, like salesforce, you can help your sales team with notifications about the follow-up reminders and the managers to track their fields. Using a CRM platform for automotive dealership management system development will provide the core features and offer the clients 24/7 dealership sales and marketing. Also, it strengthens the users to craft and manage customer processes to start well-connected with every buyer. It eases the targeted campaign’s launch and also sales and service requirements. 

Develop Using CMS Platform (Magento, Shopify)

You can also use CMS to develop an auto dealership software management system, which deals in content management, including creating and editing websites, hosting forums, handling visitor comments, tracking users’ sessions, and much more.

A CMS platform, like Shopify, assists with easy integrations when the system holds various payment gateways to improve the Vehicle dealership management system.

One more CMS platform, Magento, can help you develop an auto dealership management system by promoting your system’s products and services and handling customers efficiently by boosting search engine visibility.

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How Much Does It Cost To Develop An Efficient Automotive DMS

You can choose from various plans available to develop and expand your standard Vehicle dealership management system. While developing such systems, the top priority is always a perfect automotive dealership management system development and design at a reasonable budget. 

You must maintain a fair budget to develop and keep your software running successfully. Spending on software designing, programming, server setup and management, branding, marketing and promotion, operations, and customer support is a must while developing a DMS. 

Furthermore, your auto dealership management system’s promotion can also prove to be a bit effective. Here, you should also include the operational costs with operational features to make your helpful software. 

So, in brief, you can expect the automotive dealership management system development would cover 60% of your budget, and the rest, 30% and 10%, would come under marketing and other operational expenses.

Automotive Software Development Team Structure

Developing an automotive DMS software is not just a person’s job; it demands an experienced development team, including a few roles. 

Project Manager: He ensures that the project is delivered within time, within a defined budget, and with the best quality. 

Business Analyst: A business analyst connects the developer team and client. He understands your ideas, puts forward the needs, offers the estimated budget, delivers the prototype, and aids the client in getting the desired product. 

UI/UX Designer: This person determines the first impression of your app and ensures your app is user-friendly and is easy-to-use. 

Software Developer: An experienced software developer helps develop software solutions per business needs.

QA Engineer: QA Engineer is one of the essential profiles of the DMS software development team. He performs repetitive software tests and assures removing all the errors and bugs. 

Sales & Marketing Specialists: Some firms provide sales and marketing services that help your project reach maximum users. 

Best Automotive DMS Developers

Octal IT Solution

One of the leading web, mobile, and software solutions providers for the Automobile industry, Octal IT Solution offers varied solutions, like Dealer Management Systems, Fleet Management Software, Connected In-Vehicle Infotainment (IVI), Connected Car, Autonomous Driving, EV Charging Software, AI & ML Development Service, and a lot more. All the solutions, including automotive dealership management system development, are customized according to your business needs and perform well while lowering the costs. 

Deloitte

Deloitte offers a complete suite of automotive DMS solutions that assists ORMs and their dealer networks in discovering various areas of enterprise, improving performance, and ensuring compliance with regulatory, shareholder, and even customer needs. 

McKinsey

McKinsey software helps transform car potentials and craft development challenges for automotive players. It provides an end-to-end approach that helps integrate independent software elements into a complete platform, can enhance functionality, and reduce complexity. 

Infopulse

The proven expertise of Infopulse in automotive software development assists its clients in successfully developing their automotive software solutions. This brand builds compliant, safe, and technologically advanced automotive DMS solutions for their requirements.

Intellias

Intellias provides automotive software development proficiency supported by years of experience with various automotive technologies and vital software engineering services to assist automotive brands in the rapid pathway to a mobility future. 

Final Opinion

A good DMS car dealership assists you in attaining your objectives by motivating a friendly and efficient way of integrating and offering helpful information relevant to ongoing transactions, particularly in the context of automotive dealership management system development. This way, such software solutions will save money and benefit your business. 

You can also invest in developing an automotive DMS system that can assist you in catching up a good market share in the automotive industry.