7 Best Dealer Management (DMS) Systems

Discover the ultimate guide to choosing the best dealership software. Streamline operations and boost sales effortlessly.

You’re always looking for ways to hit your increasing monthly quota and grow your automotive business, adding more happy customers to your books. As a used car dealer, keeping on top of and growing your customer base can feel like spinning far too many plates. If there were only an all-in-one solution enabling you to efficiently manage your business from end to end…

There is: A dealership management system (DMS). A DMS improves efficiency by giving you the ability to streamline all aspects of your working day. From serving customers to managing inventory, a DMS can help.

What is a dealership management system (DMS)?

A Dealership Management System (DMS) is software specially designed for car dealership operations. It encompasses and streamlines all the processes dealers need to keep on top of to retain current customers and win new customers. A DMS includes the sales process, marketing, lead management, customer relationship management, financing and invoicing, inventory management, and most other backend and customer relations processes.

Importance of a DMS in a Used Car Dealership

As DMS brings together all operations across the business from overall analytics to day-to-day customer communication. It ensures efficiency from when a customer first inquires to when they leave a review. This efficiency increases your capacity to serve more customers, and it creates a better customer experience that encourages repeat business and recommendations.

6 Benefits of Having a DMS

So what tangible outcomes can you expect from investing in a DMS?

Data Insights

By managing all your operations in one place, all your data is stored in one place. A centralized database can more easily be mined for trends and processed for forecasts so you can use real-time data to stay ahead. Team members can share data and insights within and between departments, ensuring everyone has access to the bigger picture of how the business is doing and where it is going. Whether you’re a single team or an international franchise, knowing your numbers will benefit your bottom line.

User-Friendly Organization

A dealership management system is designed for everyday use. It makes it easy for your team to manage transactions, whether sales reps are checking the inventory, sending over contracts, or collecting payments from buyers. As most DMS are cloud-based, it has the additional user-friendly aspect of accessibility. The system can be accessed from any location, supporting flexible and multi-location working.

Streamlined Costs

All the tools involved in running a used car dealership can add up quickly. Instead of worrying about paying for individual software for CRM, text marketing, inventory management, and more, combine it into one payment on one platform. Integrating all your tools into one platform isn’t just convenient. It’s very cost-effective.

Improved Inventory Management

Keeping on top of inventory is vital for keeping up with customer demand. Running out of in-demand models or parts delays service delivery, tainting the customer experience, and could lead to lost sales. However, over-purchasing is costly. A system that can manage what has been sold, what is in demand, what to order, and where everything is located enables you to keep customers happy without compromising your cash flow and storage.

Scalability

A DMS is software that can be easily scaled according to the size of your team, the growth rate of your customer base, and the expansion of your company. It has enough flexibility to meet the needs of independent dealers, large-scale franchises, and everything in between. If you have big ambitions for your dealership, it’s a good system to have in place because it gives you the tools you need to grow and efficiently manage the extra workload.

Payoff for Customers

Improving your backend system improves your customer-facing efforts. Your team has tools at their fingertips to effectively meet customer needs. Prospects are more likely to turn into customers, boosting your conversion rate. Customers are more likely to be happy with their service, boosting customer satisfaction and retention rates. Those same happy customers are more likely to leave you a positive review, boosting your lead generation efforts. You’ll establish a cycle of happy customers.

11 Key Features of a DMS

That being said, not all dealership management systems are created equally. There are some core features to look out for to ensure you are investing in a DMS that can get you the best possible results.

Inventory Management

Managing inventory is a key process for dealerships and it’s one that can be quite easily automated with a tool for tracking inventory and reporting demand. You can even set up automated reordering to maintain levels of key stock as standard.

Reporting

Data drives business. Today’s technology can collect and process incredibly detailed data insights so you can better understand your customers, what they want from you, and your business growth. What gets measured gets managed. You can be proactive about adapting when needed and doubling down on what’s working.

Customer Relationship Management

Buying a car is a multi-step process so a successful dealership requires a reliable customer relations management system to respond to inquiries, follow up with leads, close the sale, and support customers post-purchase. With a CRM embedded into your main system, it’s a seamless workflow.

Service Management

Dealerships service cars as well as sell them. This aftercare is just as important to the customer experience and the success of the business. Look out for service management features such as automated scheduling and reminders to upgrade your servicing.

Vehicle Dealing Management

Selling vehicles is your bread and butter. Make sure your DMS has the capabilities to support that, for example, with integrations to OEMs and other essential tools for marketing, selling, and closing deals with buyers.

Accounting

Don’t let lengthy and laborious payment processes be the reason you don’t close sales and reach your quota. With the comprehensive financing capabilities available with DMS software, accounting is made easy.

Sales Automation

There are multiple parts of the sales process that are quite repetitive. Using templates and automation, you can efficiently help customers make their purchase decisions. For example, buyer’s guides could be automatically sent to customers after they book a test drive.

Credit Application

As vehicles are high-ticket items, dealers usually offer multiple finance options. Streamline this stage of the sales process by embedding credit applications into your DMS.

Employee Management

A DMS isn’t just for managing customers; it can help you manage your team by embedding key employee processes into the system, such as scheduling shifts, tracking performance, and even housing employee training.

Lead Management

The customer journey starts at the first contact a prospect has with your business. Keep on top of and in contact with your pool of leads through the communication tools available in your DMS.

Marketing

It all starts with the marketing you put out inspiring potential customers to get in touch and start the customer journey. Managing and tracking your marketing efforts is possible within your DMS.

Best Dealer Management Systems of 2025

Podium

This is an all-in-one lead generation platform that’s powered by AI. Its capabilities include:

• Online review management
• Integrated payments, text marketing, and webchat
• A unified inbox that tracks customer conversations across communication platforms
• Integrations with OEMs

CDK

This is a dealership Xperience platform that offers seamless automotive retail solutions, including:

• Intelligent data insights
• Finance and insurance management
• Customer relationship management (CRM)
• Digital retail that supports the integration of online and in-person sales

Dealertrack DMS

This is a centralized system for managing the day-to-day transactions of a dealership including:

• Funding packages
• Registration and titling
• Loan applications
• Rental agreements and other contracts

Dabadu XRM

This is an efficient, secure, and sustainable CRM with extra benefits including:

• Lead management
• Ongoing customer communication
• Inventory management
• Credit application management

VinSolutions Connect CRM

This platform offers dealerships a suite of solutions including:

• Customizable customer relationship management
• Performance management
• Data-driven insights
• Targeted marketing campaigns

Tekion

This is a cloud-based platform that offers end-to-end automation of dealership processes through:

• SOC 2 Type II security designation
• AI-powered personalized selling
• Digital retail
• Open APIs

DealerCenter

This platform is designed for independent auto dealers, providing them with capabilities such as:

• A mobile app
• Inventory acquisition and merchandising
• Customer Relations Management (CRM)
• Buy Here Pay Here (BHPH)

How To Choose the Best Dealer Management System

When choosing the right DMS for your business, there are several factors to keep in mind. You need to:

Assess Your Dealership’s Needs

Every dealership is different and may have varied needs or wants. Whatever your goals are, consider those before you select a DMS to help you reach them. The DMS you choose needs to take care of your most significant needs, such as handling payroll if you already do it in-house or managing leads to help your sales team.

Consider Scalability

The goal of most business owners, and likely yours, is to grow. With any software you choose to use, you need to consider scalability and whether you will be able to scale with it over time. If there are limits on the DMS, they could negatively impact you later. Be cautious and select a solution that makes scaling easier, not more complex.

Focus on Integration

Finally, think about how you’ll integrate the DMS into your current workflows. Not all DMS solutions will work with existing software or processes, so selecting one that works with as many of your current strategies and workflows as possible is a must. Look for a DMS brand that offers a strong support team and the ability to help you troubleshoot as you integrate the product into your business.

Get Support for Your Dealership With Podium

A DMS is vital for dealerships to optimize operations, enhance the customer experience, and maximize profits in the competitive used car market. Podium has the DMS tools you need to hit your monthly quota and then some.