Compliance Audits

Sales & Finance Audits

The only way to know whether your dealership is truly compliant with state and federal law is to look at the documentation that would be uncovered during a DMV investigation or civil lawsuit. Our team of attorneys and former DMV Investigators perform 2-day audits of your facilities, inventory, and sign postings under simulated DMV investigative standards. They will then review documentation for completeness and compliance, and interview senior staff about the existence and content of mandatory and recommended dealership compliance policies. This service assists dealers in complying with the bevy of laws and regulations pertaining to sales, finance, and DMV work.

The audits are designed to be low impact: requiring only minimal interaction with dealership personnel.

We take great care to ensure our audits do not interrupt the workflow in your business office.

Each review involves a survey of a significant number of actual sales over a specified period of time. Our highly trained auditors look for potential problems in areas that include, but are not limited to, advertising, vehicle registration, required disclosures, contract completion, vehicle representations, unwinds, odometer disclosures and vehicle transfers.

At the completion of the audit, a general meeting is held with personnel designated by the dealer principal. Ultimately, the dealer is provided with a comprehensive written report of the findings, with high-exposure issues highlighted for immediate action.

  • Simulated Government Agency Inspection: This element of our audit is an enhanced version of the inspection protocols used by the DMV in examining the public areas of the dealership, license and sign posting, and vehicle displays and labeling. We know what DMV investigators and inspectors are looking for, and our audit seeks to find problems before they do.
  • Transaction Documentation (“Deal Jackets”) Review: Our audits examine hundreds of documentation requirements, with areas of high exposure now being clearly differentiated from less-severe concerns. Under the revised protocols, we intend to increase the number of deal jackets being reviewed, and will review a sampling of jackets from different F&I Managers.
  • Policy Review: The existence of and adherence to certain polices cannot always be determined by reviewing documentation or examining the public areas of the dealership. As such, we have expanded upon our existing policy questionnaire to address both mandatory and recommended policies.

Service Drive Audits

A former BAR enforcement official will review your operations, focusing on elements with the highest compliance exposure. At the conclusion of the comprehensive review, any issues regarding current noncompliance and possible preventative measures will be communicated to management. Our auditors will perform a thorough audit in a non-intrusive manner—allowing your staff to function without disrupting your daily operations. The compliance audit involves the following key areas:

  • Enhanced Simulated BAR Facility Inspection
    We will inspect for service department licenses, signs, and notices required by BAR and other government agencies, and identify evidence of non-compliant practices.
  • Review of Repair Documentation
    We will scrutinize your repair les for compliance with the dozens of technical requirements involved with initial and revised estimates, documenting customer authorization, generating invoices, and creating required supplemental documentation. The review also examines dealership repair forms and their “backers,” while looking for evidence of overly-aggressive sales of services—a constant target of law enforcement.
  • Exit Interview
    We will sit down with senior service department management to review the auditor’s findings and ask questions related to existing compliance policies. Management will then have the opportunity to ask questions about the facility inspection and documentation review.
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