As a dealer, you’ve probably heard that it’s important to document your processes seven different ways. The Consumer Financial Protection Bureau (CFPB) is rallying for them. Lenders are asking for them. And, soon it will be a requirement for all dealers to have documented processes.
But what does this mean? I get a lot of questions from dealers asking some variation of, “Do I just need to document my processes with regards to regulations, or all my processes?” In short, the answer is invariably, “You need to document all your processes.”
But, here’s the kicker: there are so many processes in a dealership that not everyone knows where to begin. And, so many processes are simply just part of the routine, that many dealers haven’t conceptualized how to define them beyond, “just do it”.
Just like with any big project, think about tackling this project one bite at a time. Start with the checklist on your deal jackets. Define and write down the process behind each item on the list. Each process should consist of three components: