What is a DMS and why does your dealership need it?
30 Jul 2025
Are you still using Excel or loose documents to manage your cars, invoices, or warranties? A specialized DMS can save you time, errors, and a lot of paperwork. In this article, we explain what a DMS is, how it works, and why more and more dealerships are adopting it.
What is a DMS (Dealer Management System)?
A DMS (Dealer Management System) is a management system specifically designed for car dealerships and buying/selling businesses. Its purpose is to centralize all business tasks into a single tool: from the entry of a car to its sale, including invoices, warranties, documentation, and tax management.
Unlike a generic ERP or Excel spreadsheets, a specialized automotive DMS is prepared for the real day-to-day of a motor professional. This includes:
Quick vehicle registration with all its data, including REBU and VAT.
Real-time stock control: location, status, photos, prices.
Digital archive with all the car's documentation.
Issuance of invoices and contracts.
Tracking of clients and warranties.
In summary, a DMS helps you professionalize your business and reduce errors, saving time and increasing control.
How a dealership works without a DMS (and its problems)
Many small dealerships still use Excel, physical folders, or management through WhatsApp. It's a model that might work at the beginning, but over time it generates multiple problems:
Scattered information: you have one Excel for stock, another for warranties, contracts in PDF, invoices elsewhere... This complicates finding what you need quickly.
Tax errors: manually calculating REBU or VAT can lead to mistakes that later cost money to the tax authorities.
Lack of control: you don't know which cars are ready to sell, which have upcoming ITV inspections, or which client has an active warranty.
Dependence on third parties: if everything goes through your management office, you depend on their availability, and often you do not have visibility on the actual status of your operations.
All of this not only takes away your time, but it can also affect the image you project to your clients.
Practical advantages of using a specialized automotive DMS
A good DMS gives you control, organization, and professionalism. Here are some specific advantages:
Simplified stock management: you can register a car in seconds, with all its data, photos, and documents. You can see which cars you have available, how long they've been in stock, and what margin they provide.
Documentation always at hand: forget searching through folders. Each car has its digital "file" with circulation permit, technical sheet, warranty, invoice, etc.
Automated invoicing and REBU: calculates the correct VAT based on the car's origin and issues invoices in accordance with regulations. This helps you avoid mistakes and saves time.
Warranty tracking: you know which car has an active warranty, when it expires, and which client it belongs to.
Professional image: you deliver the car with everything organized, well-presented, and you instill confidence from the first contact.
Why is it especially useful now?
2025 marks a turning point for many small dealerships. Here are some reasons:
Digitization of processes: DGT is betting on 100% online management. It's no longer acceptable to hand in disorganized papers or wait for "the management office to handle it."
Increased control from tax authorities: REBU is under scrutiny, and errors in VAT or receipts can lead to penalties. A well-configured DMS helps you comply without anxiety.
More informed customers: today, buyers seek transparency, want to know what they are buying, see warranties, and receive clear documentation. If you don’t provide it, they will look elsewhere.
Digital competition: platforms like Spoticar, Clicars, or Heycar offer agile and digitized processes. If you are still using Excel and paper, you start at a disadvantage.
How to choose a good DMS for your dealership?
There are many options on the market, but if you are a professional in buying/selling, you need it to meet certain requirements:
Functionalities tailored to automotive: it must allow working with REBU, VAT, warranties, and documentation by license plate. No adapting generic solutions.
Easy to use: no need for technical training. It should be intuitive, with logical processes and accessible from mobile or computer.
Professional support: if you have a problem, you need someone to attend to you quickly and in your language. Good support makes the difference.
Constant updates: regulations change, and your DMS must adapt without you having to worry about it.
Request a demo before deciding, and make sure it fits your way of working, not the other way around.
Practical conclusion
A DMS is not just for large dealerships. For a small or medium professional, it could be the tool that makes the difference between surviving or growing in 2025.
Do you want to try one that's made for you? With Dealcar, you can manage everything in one place, without complications.
