What Software Do Car Dealerships Use?
Most dealerships run a DMS for the books and deals, a CRM for leads and follow-up, and a handful of tools for inventory, appraisals, finance and marketing. Here is what each one does and how they fit together.
What software does a car dealership need?
Almost every dealership runs two core systems: a dealer management system (DMS) and a customer relationship management system (CRM). Around those sit tools for inventory and pricing, appraisals, finance applications, website and listings, and phones and texting.
What does a DMS do?
The DMS is the store's system of record for money and paperwork. It holds inventory, deal jackets, accounting, contracts and, for franchise stores, service and parts. Independent stores often run DMSs like Frazer or DealerCenter. Franchise stores usually run CDK, Reynolds and Reynolds, or Tekion.
What does a CRM do?
The CRM is where sales happens. It takes leads from AutoTrader, CarGurus, your website and the phone, routes them to reps, keeps every text, call and email in one history, and reminds people to follow up. Modern CRMs also add AI that replies to leads and follows up on its own.
- Inventory and pricing: market data and repricing suggestions
- Appraisals: book values and sold comps for trades
- Finance: credit applications and lender submissions, such as Credit App or Dealertrack
- Listings and website: marketplaces and your own site
- Phones and texting: business numbers, call recording and bulk texting
Do I need all of these as separate tools?
No. The trend is toward fewer logins. BKD, for example, is a CRM that also covers appraisals, live inventory from your DMS feed, deals, calls and texting, and Credit App lender submissions, so a store keeps its DMS and replaces several add-ons with one system.
Where should a small dealership start?
Start with the DMS you need for compliance and paperwork, then choose a CRM that reads its inventory feed and answers leads fast. Speed to lead is where most small stores lose deals, and it is the cheapest gap to close.
Frequently asked questions
What software do car dealerships use?
Most run a DMS for inventory, deals and accounting, and a CRM for leads and follow-up, plus tools for appraisals, pricing, finance applications, listings and phones.
What is the difference between a DMS and a CRM?
A DMS runs the store's books, inventory and deal paperwork. A CRM runs leads, conversations and follow-up for the sales team.
What DMS do independent dealers use?
Common choices for independents include Frazer and DealerCenter. Franchise stores usually run CDK, Reynolds and Reynolds or Tekion.