I don’t know about you but Fall in my household means allergy season which means sneezing and headaches. While we love the cooler weather, sports and other activities, outdoor adventures come with some challenges. Fortunately, a little prevention and some good habits help us manage the effects.
For our powersports dealers, you might feel the same way about compliance! The paperwork, the details, the disparate federal, state and local regulations might cause widespread headaches for your team. But just as I deal with my allergies, some good habits can really minimize the impacts for your team.
If you think you’re immune from compliance regulations because the Federal Trade Commission announced that powersports dealers were exempt from the Combating Auto Retail Scams Rule (CARS) – think again! There are several other federal regulations as well as state and local compliance rules which apply to powersports dealerships.
The FTC recently updated the Safeguards Rule, making information security practices at recreational vehicle and powersports dealerships much more stringent. Red Flag Rules which focus on detecting, preventing, and mitigating identity theft also apply. And, let’s not forget advertising regulations and CANSPAM. Additionally, each state has its own compliance requirements which apply to any type of vehicle that can be licensed.
Avoiding an audit headache
Minding the various rules and requirements is only part of good compliance habits. Failure to adequately prepare for a compliance audit can cause you to reach for the pain medication. Fortunately, there are some simple steps to mitigating audit panic or a full-on migraine!
- Step One: Identify your risks. Think of it as checking your tire pressure before hitting the trail. Assess your digital and paper infrastructure—where could a leak or cyber-attack happen? Audit your processes – is there a breakdown causing poor customer service and potential regulatory fines?
- Step Two: Implement policies and procedures. It’s like fine-tuning your engine. Set up protocols for data security, sales and F&I presentations, responding to online inquiries, etc.
- Step Three: Inspect what you expect. Regularly review your team’s work product against your policies, retrain and refine where necessary, rinse and repeat.
If those steps seem beyond your reach – never fear! Our team of training and compliance experts can give your dealership a checkup. We’ll provide you with a risk assessment and analysis to determine your dealership’s next steps. While we can’t guarantee there won’t be a headache or two along the way, we can greatly minimize any chronic compliance pain.
For more than 50 years, our clients have depended on EFG experts to achieve their compliant profitability. Our proven team of EFG trainers and experts are here to help you manage the compliance requirements so you can focus on selling more units. At EFG Companies, we’re more than an F&I provider, we’re your business partner in the retail marine and watercraft industry. Contact us today to learn more about how our team can help you achieve your winning strategy.
