Running a car dealership business is simple and straightforward. Still, in reality, dealers need to perform a plethora of jobs to keep their businesses up and running successfully. From inventory management to customer outreach, car dealers need to do much. 

A car dealer management system (DMS) can help them automate business operations and handle complex tasks efficiently. The global automotive DMS market will reach $15.5 billion by 2033, with a CAGR of 12.6%. So, the scope is vast and will expand in the upcoming years. 

What is an automotive dealer management system? How to build one for your business? Why invest in auto dealership management systems? To reap the benefits of such software, you should know everything about it.

This post will discuss automotive DMS and everything relevant that may help you harness the capabilities of DMS and benefit your business to attain future goals cost-effectively. 

Let’s gear up!

An Introduction to Car Dealership Management System

car dealership management system

The system of dealership management is actually the process of enabling various dealerships to perform their daily functions regarding sales operations, operations relating to service as well as finance, and many more. These functions work together with each other and thus it is essential for the dealer management system to be proper and systematic in its working. Moreover, the design of a car dealership management system is the process of dealerships based on deals and contracts with a sales subsidiary or sometimes an automaker in the online platform.

The car dealership system deals with a variety of cars and also carries a variety of certified vehicles that are also pre-owned. Under this system, the workforce consists of automotive technicians and salespeople who are eager to sell vehicles such as automobiles. Whereas automotive technicians usually sell spare type automobiles or stock them and their parts with warranty with claims. It also has the provision of maintaining cars and servicing them.

How Does An Efficient DMS Software Make A Difference?

next gen dealer management systems
Source: Wipro

An efficient dealer management system software can actually make a big difference to your business. A dealership system software that is efficient actually makes a difference and it will always make sure that it has been working properly in having inventory, vehicle pricing, part ordering, warranty claims, creating credit reports, administration and creating credit reports and obviously accordingly benefitting your business.

Through a good and efficient Dealership management system software dealers can improve their business structure through the combination and operation of all the tools in a single online platform. The day-to-day transactions of your dealership and its handling becomes easier in running your business. There is no such need to handle every transaction separately in a different manner as well as manage the inventory. It helps in creating efficient features of various sale invoices, good intelligence services with features of view service history, or any other follow-ups.

Here are some points listed below that would help you to know as well as understand better how an efficient dealership management software can make a difference.

  • A good DMS is flexible in nature that can rapidly evolve in a matter of time according to the market needs.
  • Efficient features are needed that help to design greater marketing campaigns and run them as well.
  • The function of handling and managing sales and after-sales activities is always present in an efficient DMS system.
  • An efficient DMS system increases the purpose of the customer satisfaction system.
  • An efficient DMS system also helps you record and monitor the satisfaction of customer’s needs.
  • A perfect DMS system has the functionality of encouraging larger revenues and utilization.

Build Your Own Automotive DMS

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A perfect dealership system helps you get rid of unnecessary paper works and boost efficiency in work as well. It helps to handle appointments very well and guarantees friendly communication between departments. It is also available for customer services 24×7.

Moreover, a good dealer management system helps you achieve your future goals by encouraging an effective and friendly way of interaction and with proper information about transactions taking place. Thus a good DMS would actually help save lots of money thus benefitting your business.

Automotive Software Statistics – Facts & Figures to Know

The automotive software market was calculated to be about $18.5 billion according to the global view in 2019 and is predicted to reach about $43.5 billion by 2027. Automotive software refers to the software used for purposes of in-vehicle embedded systems. Computer-based in-vehicle applications such as telematics, infotainment, powertrain, body control and comfort, communication, advanced driver assistance systems (ADAS), and safety are such features included in it. The automotive industry is moving towards such a phase where cars will start to communicate with each other and also to drivers.

Automotive Software Market Worldwide 2018 – 2024 (mn USD)

automotive software market size 2018 - 2024
Source: Statista

All these advancements in technology have actually challenged the automotive creators to inculcate automotive software solutions that will offer much utility and greater convenience to their customers. The factors, as well as features in vehicles, have resulted in the increased adoption of connected car services, and intervention of innovative technologies for advanced UI and are therefore expected to drive the market growth and its larger size. Further, the potential of 5G and AI, and growing developments in semi-autonomous and autonomous vehicles have been witnessed to offer opportunities for greater automotive software market growth.

The US’s DMS market for franchised car dealers is anticipated to grow by $541 million to $1.9 billion by 2027 at a CAGR of around 6.7%. The global DMS market is predicted to expand at a CAGR of 12.6% between the forecast period of 2023 to 2033.

Top Automotive DMS Software Gaining Popularity Worldwide

When you choose the best dealer management system, you should consider the following:

  • CRM integration, 
  • Inventory management, 
  • Financial management and 
  • Reporting and analysis. 

Let’s talk about some top Automotive DMS software running successfully. 

When you choose the best dealer management system, you should consider the following:

  • CRM integration, 
  • Inventory management, 
  • Financial management and 
  • Reporting and analysis. 

Let’s talk about some top Automotive DMS software running successfully. 

1. AutoServe1


A cloud-based auto repair shop management solution, AutoServe1 helps with digital vehicle inspection (DVI) and holds the caliber to educate vehicle owners on topics relevant to their auto repair tasks. 

2. DX1


A cloud-based dealership management system for motorcycle owners and power sports dealers, DX1 includes a DMS software website, lead manager, and online marketing tools. 

3. Test2Drive


A computer-based test system, Test2Drive assesses psychomotor abilities, and the tests it conducts hold clear instructions and incorporate an interactive practice phase.

4. DealerCenter


One more auto management system for independent automobile dealerships, DealerCenter is a cloud-based, centralized system that backs the routine dealerships’ operations. 

5. Elead CRM

Elead CRM

A customer relationship and dealership management tool, Elead CRM is best for car dealers who need to communicate with phone, showroom, and internet leads from one tool. Besides, it captures and nurtures leads, analyzes and organizes data, and develops a robust pipeline for a dealership. 

6. Dealertrack


A Software-as-a-Service (SaaS) platform, Dealertrack offers integrated dealership technologies and facilitates dealerships to automate their operations by managing financing, inventory, and customer data at a single hub. 

Modules of Auto DMS Software

DMS Architecture
Source: Wipro

Vehicle Sales Management

  • Schedule and Track Showroom visits
  • Test Drive Booking & Planning
  • Vehicle Trade-in Management
  • Car Purchase Management
  • Vehicle Insurance management
  • Vehicle Warranty Management
  • Vehicle guarantee Management

Vehicle Service Management

  • Service Scheduling & Planning
  • Auto Repair Time Management
  • Vehicle Warranty Management
  • External Service Management
  • Service History Management
  • Service Document Management
  • Insurance Financial Management

Spare Part Management

  • Spare Part Sales Management
  • Non-stock Item Management
  • Spare Part Booking
  • Sales Document Management
  • Spare Part Item Substitution
  • Bar Codes for Spare Part Management
  • Spare Part Purchase

Inventory Management

  • Parts Inventory Management
  • Car Lot Management
  • Spare Part Replenishment
  • Warehouse Management
  • Multi-location Stock Management

Financial Accounting Module

  • Buy-Here-Pay-Here
  • Retail & POS Operations

HR & Payroll Management

  • Employees information Records
  • Salaries & their changes
  • Attendances Recording
  • Vacation Approval & Tracking
  • Automatic calculations of deductions
  • Automatic calculation of Overtime
  • Automatic calculation of salaries
  • Printing of payslips
  • Recording of business trips
  • Shifts enabled
  • Appraisal System
  • Training System

Automotive CRM System

  • Contact Management
  • Creating and Capturing Sales
  • Operating and Scheduling Sales Calls
  • Observing Individual Sales Targets
  • Assigning Leads to Salespersons
  • Customer Loyalty Management

Workshop Management System

  • Customer Reservations
  • Vehicle History Record
  • Job Order & Status
  • Real-Time Job Monitoring
  • Time Control (Shop Loader)
  • Invoicing & Billing
  • Final Vehicle Inspection
  • Release Permission Note
  • Dashboard with KSI

Business Intelligence & Reporting

business intelligence reporting for automotive dms

Business Intelligence reporting is defined as the broad process of using a BI tool that helps in preparing and analyzing data to find as well as share some actionable insights. In such a way, BI reporting helps various users across to improve major decisions and increase their auto dealership business performance. It is basically the process of collecting business data that helps to turn information into meaningful as well as actionable with a strategic goal. Thus, BI is the actual software that allows various users to build and share some static reports easily in different document formats and also to set up some of the data-driven and real-time high alerts when KPIs usually pass a threshold.

Document Management & Scanning

  • Document Input
  • Document Indexing
  • Document Search
  • Document Processing
  • Workflow Automation
  • Document Security
  • User Dashboard
  • Customization
  • Access Control

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Reports Analytics and Dashboards

Reports Analytics and Dashboards in dms system

Report analytics is a feature that actually helps to understand the customer behavior and usually draws meaningful insights from it such that it helps the business to make wise decisions as well as implement smart strategies. Dashboards are basically used to improve the understanding allowing various collaborations with the sharing of information across some organizations. Interactive dashboards usually include some real and rich data visualizations of various kinds of charts, graphs, and maps making it easier for the businessman to understand and collaborate with them. Reports that are static and very alert are also important ways for businessmen to stay and excel in their business by taking smart actions.

Things You Need To Consider Before Developing An Automotive DMS

There are usually some things you might want to consider before developing an Automotive DMS software. Here are some of them listed down that could take your business to the path of excellence.

On-Site SaaS System

The onsite-based SAAS system is actually an easy way to deliver applications on the internet as a means of service. This system allows you to easily access via the internet without any need for maintaining or installing software. This helps you to free yourself from very complex software as well as hardware management. In broad terms, you can say that a SAAS-based application is any kind of software you might be right about but is not under your premise. It is run mostly via the web browser and similarly in the cloud. You might think of considering an On-site SAAS-based application as it gives you the widest array of computing that is cost-efficient in nature. This can also be hosted centrally and also it can be distributed out such that it meets various demands of rapidity in a global manner thus, growing the business further.

Cloud Hosted SaaS System

A cloud-hosted SAAS system is a service that runs on the Cloud. The Cloud-hosted SAAS system is developed in a way faster to share data accurately as well as effectively. Many advancements in the technological sector have allowed entire servers as well as storage to be hosted in the cloud-based SAAS system. You might actually want to consider the cloud-hosted SAAS system because it offers greater vertical scalability. This as a result gives the customers the option to access some or more services as well as features on demand. It provides automatic updates playing a greater role in patch management.

Number Of 3rd Party Integration needed in DMS

3rd Party Integration needed in DMS

Third-party integrations are very much needed for a successful auto dealership business management system as it helps you advance and easily handle all the transactions and operations with good customer satisfaction, reducing abandonment rates and positively impacting retention rates. On-site payment gateways such as PayPal, Stripe, Square, shipping software solutions, multichannel inventory management system, accounting management system, social media, customer relationship management, customer support: live chat and help desk, e-mail, and marketing automation, rating and feedback software, analytics and additional integrations. If you really want to make your business flourish at a rapid rate then you might want to add certain kinds of third-party integrations in your dealership management software when developing it. So here’s is the number of i.e the list of third-party integrations that you might want to add to your dealership management software while developing it and trying to make a big difference in the online platform.

ERP Integration

It is a type of third-party integration which is multi-channel in nature. It also serves as the foundation to run automotive dealership management software. ERP helps in managing items that the entrepreneurs wish to sell with efficient customer-specific pricing, managing inventory, and greater availability in sales as well as order processing.

CRM Integration

This is a third party as well as a multi-channel integration process that deals in customer relationship management (CRM) and actually helps in providing a good understanding of channel management. Moreover, it helps to translate some value-adding interactions with customers visiting the site, with the provision of pre-sales communication, standard sales interaction, good post-sale service as well as support with the customer.

POS Integration

POS integration is also a third party and a multi-channel feature that is a streamlined connection between a POS software and an automotive accounting and operations platform which can pull different types of detailed data directly in a real quick time.

RMA Reporting and Flow

It is also called a return merchandise authorization (RMA), which is a third-party integration feature that deals in returning automotive and vehicles after it has been purchased due to some difficulty or other reasons. It helps the customers to receive a refund, replacement, or repair during the vehicle’s warranted period.

ChatBot Integration

eCommerce chatbots are such kinds of integrations that actually serve as a powerful helping hand to ecommerce dealership management systems. Using various kinds of intelligent prompts and quick message replies, they engage willing customers as well as passive visitors. It helps to solve their queries and various questions related to a particular vehicle just by chatting on the website of the dealership management system. Therefore, it gradually leads to excellence and a greater increase in sales and profits adding up to overall revenue.

Smart Search Integration

The Smart Search integration is a third-party integration feature that allows providing efficient labeling of products with relevance to charts reducing various confusion. It actually helps in making it easier for the buyers to easily search their desired vehicles and related things on the site.

How To Develop A Car DMS Software?

You can develop a car Dealer Management System from scratch or leverage a CMS platform. 

Let’s explain the process separately.

Developing From Scratch

An auto dealership software management can be developed from Scratch is usually custom based and designed with the hand-coded website. So developing your software from scratch means that the site is constructed as per the clients’ needs using core language, and also including their specific business requirements for an auto dealership system management software.

Using A CMS Platform

An auto dealership software management system can be developed through CMS, a platform that deals in Content management regarding editing and creation of websites, tracking sessions of users, handling visitor comments, hosting forums, and much more.

Shopify is also a CMS platform that helps you with simple integrations having lots of payment gateways improvising a role in your auto dealership management system.

Magento is also another type of CMS platform through which you can develop your auto dealership management system by promoting the services and products offered in your dealership system and also helps in handling customers with ease by increasing the search engine visibility.

Future Trends in Automotive Dealer Management Systems

With the growing automotive industry, dealer management systems are also evolving. The chief reasons behind the expansion are technological advancement and new trends that hold the potential to revolutionize the way dealerships operate. 

Let’s explore the top future trends in DMS:

1. Automation in DMS

Automation is essential in diminishing manual efforts, streamlining dealership operations, and enhancing efficiency. 

In the future, automotive DMS systems will likely harness the capabilities of automation technologies, like Robotic Process Automation (RPA), to automate mundane, repetitive jobs, such as report generation, data entry, and inventory management. It will not only save time but also reduce errors and boost productivity. 

2. Artificial Intelligence (AI) in DMS

AI holds the caliber to transform dealer management systems by facilitating predictive insights, advanced analytics, and intelligent automation. 

Moreover, AI-infused algorithms can analyze data, like customer buying behavior, preferences, and market trends, to produce actionable dealership perceptions. 

AI is best at optimizing inventory management, improving customer interactions, and automating sales processes by offering personalized recommendations and offers. 

AI virtual assistants and chatbots can also manage daily inquiries, freeing the staff to focus on other complex tasks. 

3. Personalizing Customer Experience

In the digital world, customers cherish personalized experiences, and the Dealer Management System helps deliver them. Using AI algorithms and customer data, DMS can offer customized recommendations, tailored offers, and targeted marketing campaigns based on individual buying history and preferences. 

Advanced DMS can permit customer segmentation, boost loyalty, and drive repeat customers. 

How Much Does It Cost To Develop An Auto Dealership Management System?

To develop a standard auto dealership management system and expand your dealership business there is a lot to plan. An efficient dealership management system within a reasonable budget stands as the highest priority while planning to develop an auto dealership management system. You should maintain a decent level of money to sustain your business and develop software. The cost regarding software programming, design and branding, marketing and promotion, server setup and management, customer support, and operations is something you almost need to spend on.

Moreover, the promotion of your software management system can be a little effective but you can easily handle cost-effective options such as influential bloggers. The operational costs will also be included here as with operational features your software will be of no use. Moreover, as the cost of app development can be relative to the type of app you want to develop, the cost for the development of software can also be in a few thousand or sometimes in a range of six figures. The development would really cost you a maximum of your budget, let’s say 60% and for marketing, it would cost about 30% and operation would take the least i.e 10% of your budget.

All in all, investing in developing an automotive DMS system can help you grab a good market share in the automotive industry. So, build your own car dealership management system with the help of our automotive industry solutions.

How can Emizentech Help Develop a DMS For Your Business?

Now, you know almost every aspect of developing the best DMS to pace up your business operations and enhance productivity. 

You can also devise to develop a suitable DMS for your business to save you time, effort, and money. Before that, you should define what type of dealer management system you need to build, objectives, scope, functions, and more. The right DMS can help your business perform as expected. 

You can hire a professional team of developers from Emizentech to build a DMS, who guide you perfectly from defining goals to picking the best features to maintain software. 

Key Highlights of Emizentech

  • Expert software developers
  • On-time delivery
  • Follow Agile approach
  • Offer post-development service
  • Provide competitive pricing
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CTO at Emizentech and a member of the Forbes technology council, Amit Samsukha, is acknowledged by the Indian tech world as an innovator and community builder. He has a well-established vocation with 12+ years of progressive experience in the technology industry. He directs all product initiatives, worldwide sales and marketing, and business enablement. He has spearheaded the journey in the e-commerce landscape for various businesses in India and the U.S.