Key Challenges in Managing and Maintaining Compliance for Automotive Dealerships — and How SaaS Can Solve Them
Automotive dealerships operate within a complex ecosystem shaped by strict manufacturer standards, industry best practices, and a wide array of national and local government regulations. These demands span across every department, from sales and service to facilities, HR, and finance. Ensuring compliance is no longer just a legal necessity; it’s a business-critical function that directly impacts dealer profitability, brand relationships, the customer experience, and long-term viability.
Below, we examine the most pressing compliance challenges that dealerships face, providing an explanation of each and how a purpose-built SaaS solution can address them.
1. Fragmented and Siloed Compliance Requirements
The challenge:
Dealerships must comply with a broad and often disjointed set of regulations. These include:
§ OEM standards (e.g., facility branding, operating practices, system usage, warranty conditions, staff training, etc.).
§ Health and safety laws (staff safety, fire codes, hazardous materials handling).
§ Environmental regulations (waste disposal, emissions).
§ Data privacy laws (GDPR, CCPA).
§ Operating excellence (internal processes and ways of working to maximise efficiency and effectiveness).
Each of these requirements may fall under the responsibility of different functions in the dealership (e.g., HR, service manager, compliance officer, workshop manager), resulting in a disjointed approach where no single stakeholder has full visibility or control. Spreadsheets, paper binders, informal workflows and the use of third-party legacy systems dominate the landscape.
The SaaS advantage:
Leading SaaS solutions like MONITRR eliminate silos by centralising all compliance domains into a single digital platform. Requirements are clearly categorised, responsibilities are assigned, and progress is tracked in real-time. Dealerships can see the whole compliance landscape across departments, eliminating duplication, missed obligations, and inconsistencies. The right amount of everything is in one place.
2. Lack of Real-Time Oversight and Traceability
The challenge:
Traditional compliance management methods only offer retrospective insight. By the time a dealership becomes aware of a lapse, whether it’s a missing inspection, expired certification, or incomplete training, the risk has already materialised. This reactive model is particularly problematic for multi-location dealerships or those undergoing regular audits.
Moreover, without a digital trail, it’s difficult to demonstrate "reasonable efforts" to remain compliant, something increasingly important in legal and OEM reviews.
The SaaS advantage:
Leading SaaS solutions like MONITRR enable real-time visibility through centralised dashboards, monthly status reporting, automated alerts, and digital audit trails. Dealerships can monitor their compliance posture live, identify issues before they escalate, and provide defensible records to auditors, manufacturers, or regulators at a moment’s notice. Legacy systems often provide only a momentary snapshot of compliance, whereas SaaS offers a continuous record with performance trending evidence.
3. Burdensome Audit and Certification Processes
The challenge:
Whether conducted by the OEM, third parties, or internal teams, compliance audits are resource intensive. Managers often scramble to locate policies, photos, certifications, or maintenance records that are scattered across various systems or storage rooms. The lack of preparation can lead to failed audits, costly re-audits, and strained relationships with OEMs.
In addition, many certification programs, such as brand image upgrades or technician training programs, require precise documentation and evidence that standards are being met and sustained over time.
The SaaS advantage:
With leading SaaS solutions like MONITRR, all required documents, photos, and compliance evidence are stored in the cloud, timestamped, and easily accessible in the platform. Tasks can be assigned in advance, reminders issued automatically, and audit action plans generated with a click. This reduces audit prep time, improves accuracy, and helps dealerships pass on the first attempt. Dealerships are no longer surprised. They are always aware of their compliance status.
4. Limited Employee Engagement and Accountability
The challenge:
Compliance is not just about systems; it’s about people. Many regulatory obligations (e.g., hazardous material handling, data security, test drive protocols) are only effective if frontline employees understand and consistently follow procedures. However, dealerships can often struggle with:
· Inconsistent onboarding and training processes.
· No formal tracking of who completed what training, and when.
· Lack of clear ownership for specific compliance areas.
The lack of dealership staff engagement often materialises from the audit process perceived as adversarial rather than a partnership.
The result is poor adherence, particularly in high-turnover roles such as service advisors or salespeople.
The SaaS advantage:
Leading SaaS solutions like MONITRR help develop a culture of accountability, reduce variability, and ensure that every team member knows their compliance responsibilities. Regular automated compliance status updates, along with action plans assigned to individuals and automatically tracked by the system, play a pivotal role.
5. Keeping Up with Constantly Changing Standards and Regulations
The challenge:
Compliance is a moving target. Manufacturers regularly update program requirements, ranging from service process audits to facility design guidelines. Meanwhile, governments may introduce or revise legislation related to emissions, employee rights, consumer protections, or data security.
Staying updated requires constant monitoring of multiple sources, interpreting dense documentation, and then translating it into local actions.
The SaaS advantage:
Leading SaaS solutions, such as MONITRR, integrate with OEM portals to automatically update compliance requirements as they change. Users receive in-platform notifications, contextual guidance, and updated checklists that ensure swift adaptation. This proactive compliance model gives dealerships a competitive edge and reduces the risk of falling behind.
6. High Risk and Cost of Non-Compliance
The challenge:
Non-compliance carries significant consequences that extend beyond fines and legal liabilities. Manufacturers may:
§ Penalise dealerships through chargebacks.
§ Restrict warranty reimbursements.
§ Reduce performance-based incentives.
§ Revoke certification status.
§ Restrict participation in new model releases.
Additionally, non-compliance incidents can erode customer trust, attract regulatory scrutiny, and harm the dealership’s reputation.
The SaaS advantage:
Leading SaaS solutions, such as MONITRR, proactively manage risks, enabling dealerships to identify vulnerable areas, track resolution efforts, and document compliance actions. They provide a clear audit trail of who did what, when and how.
Conclusion
Compliance in the automotive retail industry is multifaceted, dynamic, and mission critical. The challenges dealerships face, from fragmented requirements to limited resources, cannot be effectively managed using outdated, manual methods and third-party legacy or repurposed systems. A modern SaaS solution like MONITRR offers a centralised, proactive, and scalable approach that empowers dealerships to maintain high standards, build trust with OEMs and regulators, and focus more confidently on their core business.
By transforming compliance from a liability into a strategic asset, MONITRR helps dealerships safeguard their reputation, performance, and long-term success.