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Dealership Management System (DMS)

A DMS is an enterprise information management system created specifically for the automotive industry or car dealerships. A DMS provides basic functionality for departmental operations.

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What is a Dealer Management System?


A Dealer Management System (DMS) is a comprehensive software platform used primarily by automotive dealerships and similar sales entities to manage their operations. This system integrates all aspects of the dealership's business, from sales, finance, inventory, customer relationship management (CRM), service and parts management, to accounting and reporting. The goal of a DMS is to centralize and streamline processes, improve efficiency, enhance customer service, and ultimately drive sales and profitability.

Why do dealerships use other software?

Dealerships may opt to use additional software alongside a Dealer Management System (DMS) for several reasons, often seeking to enhance specific aspects of their operations, address limitations of their current DMS, or take advantage of new technologies.

What DMS systems can dealerships use?


Independent (used vehicle) dealerships have the flexibility to choose any Dealer Management System (DMS) that fits their needs and budget. In contrast, franchised (new vehicle) dealerships are often limited to a shortlist of approved DMS providers, determined through a certification process by the vehicle manufacturers to ensure the systems offer the necessary features, reporting capabilities, and integration required for their operations.

Common DMS Providers

While there are many DMS providers in the market, some of the well-known names include:

  • Reynolds and Reynolds
  • CDK Global
  • Dealertrack
  • PBS Systems
  • Tekion

These providers offer a range of solutions that can cater to both independent and franchised dealerships, with various levels of customization and integration capabilities to meet different needs. The choice of DMS will depend on a dealership's specific requirements, the manufacturer's approval (for franchised dealerships), and the desired balance between functionality and cost.