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Dealership management system or software? DMS lingo you should know

Written by Matthew Copeland | Apr 19, 2023 3:25:56 PM

If you have never used software to run your dealership before, there are terms you will want to be familiar with as you compare different options. In this article, we are going to define what dealership management software is as well as define some of the terms you might see in your research.

RELATED: When is the right time for you to get dealership management software?

Dealership Management Software / Dealership Management System: Is there a difference?

The terms dealership management software and system are used interchangeably. There are also both shortened to DMS. They both mean the same thing: Software built specifically for dealerships to manage customers, sales, financing, parts, service, and/or accounting. 

There is a variety of dealership software on the market today. Some serve your traditional car dealerships by the big automakers. Others, like EverLogic, are built by independent software companies and can serve a variety of dealerships, including auto, RV, trailer, powersports, marine, heavy equipment, small motors, tractors, and more. Still, others are specifically designed to serve one type of dealership.

RELATED: Best value dealership management software options in 2023

In truth, most dealership systems carry out the same basic functions with slight differences between them. Virtually all dealership software will let you:

  • Create and manage customers
  • Create quotes and invoices
  • Order and sell vehicles and parts
  • Take payments
  • Create and manage repair orders
  • Create reports

You can make distinctions between different dealership management systems: accounting (on-platform or integrated with QuickBooks or other software), functionality and layout, customer support, and price. At the end of the day, your decision will likely come down to those factors, though there are other factors that will go into your decision.

RELATED: Differences between QuickBooks & integrated accounting for dealerships

What are modules?

If you are unfamiliar with dealership software, one term you might want to know is "module." A module is part of the main program that focuses on a broad function. For a DMS, a module will be your customer management system, vehicle inventory (including sales), parts inventory (including sales), accounting, and service, among others.

LEARN MORE: EverLogic Modules

Within each module are a subset of functions. For example, within the vehicle inventory module, you can add new vehicles to your inventory, create a quote, and complete a sale. On the other hand, your service module will allow you to create an RO, clock in for a job, add pictures of a vehicle into the system, and add parts to a job. Like a dealership, the DMS modules will connect and interact with each other like a web. For example, think about the parts and service modules working together when adding a part to a job or sales and F&I working together to complete a sale that needs financing. 

RELATED: Is EverLogic DMS cloud-based, online, or desktop only?

When you do your research on different dealership management systems, pay close attention not simply to the modules themselves but to how the modules work. There are settle enough differences that can make a big difference in the long run. For example, if your staff is not very computer savvy, it's probably better off getting a DMS whose specific functions are simple to understand and perform so they can use it without getting confused.

RELATED: How EverLogic makes training easy for your dealership

You may also want to do research or talk to individual companies to see how their software handles rentals. Some have a module exclusively for rentals, others allow you to do rentals within the software though it doesn't have a dedicated module. You will also have software that will not allow you to do rentals at all. If rentals are an integral part of your business model, it is certainly something you want to spend time researching.

RELATED: What equipment do I need to get started to use EverLogic?

What are licenses?

 

When you buy any dealership management system, you are buying one or more licenses. A license is simply the right to use that software. Most dealership software is licensed by how many people are logged onto the system at once rather than the number of users or logins.

For example, your dealership could have 10 people that will need to use EverLogic at any particular time. However, all 10 people may not need to use the DMS at the same time. So you can buy eight or nine licenses. However, it is important to note that if you have someone who needs to log on and you don't have enough licenses available, they will either have to wait or someone will need to log off. 

RELATED: Here's how dealership software licenses work at EverLogic

When you are researching dealership software, take some time to figure out what your license allows you to do. Most companies, including EverLogic, give users full access when they purchase a license. However, you may come across a company with different levels of access based on price. 

RELATED: How many DMS licenses does your dealership need?

Other terms you should know

There may be several terms you may not be familiar with when it comes to dealership software. So here is a short glossary of terms and definitions that might help you:

  • CRM: Customer Relationship Management
  • Implementation/Onboarding: Process between the purchase of a DMS and the beginning of your using the DMS. Typically includes data transfer, training, and document programming
  • Part Kits: A group of parts used for a certain job (ex. Antifreeze, sealant, ect. for winterizing a vehicle)
  • Labor Code: Common jobs with a set price (ex. Oil change)
  • PO: Purchase Order
  • RO: Repair Order
  • EOD: End of days
  • Wash: Clearing/Closing a deal
  • Internal Payment: Paying for service within a larger deal (ex. Selling an RV while adding a grill to the unit. The grill and service would be paid for as part of the sale of the unit.)
  • Cycle Count: An audit of a dealership's inventory

 

Conclusion

As you do your research on whether it is time for you to move forward with a dealership management system, it is important for you to understand exactly what you are buying and the terms a salesperson at a software company might use.

RELATED: Top 5 questions about EverLogic dealership software implementation

When in doubt, it is always best to ask a question about the software, especially if the company wants to sign you to a contract. Also, if you go through a one-on-one demo, use that time to get a full understanding of the software and how it can benefit your dealership.

RELATED: Determining the value of a dealership management system (DMS)

If you would like to learn more about how EverLogic Dealership Management Software works, click the button below to view our free demo.