Contemporary Energy Solutions

Automotive Dealerships: Staying Ahead in the Regulation Race


There are several challenges automotive dealerships face which prevent them from garnering more sales. One particular restrictive force are the intrusive and unwieldly regulations being enforced on the automotive industry. In fact, the auto industry is one of the most heavily regulated in the country.


Auto dealers must adhere to a vast number of laws, rules and regulations to contend with, which can be overwhelming. A recent study found that automotive dealerships pay a staggering $3.2 billion each year complying with government regulations (NADA 2014). This has an enormous financial impact on these businesses. Regulatory costs for the average dealership are equivalent to about 22% of their total pretax profits for the year (NADA 2014).


As expensive as it is to remain compliant, it is even more expensive for a business not to follow these regulations. Here are just a few of the potential fines for violations which are charged per incident (Auto Dealer).


  • Red Flags Rule – $3500
  • DNC Rule – $16,000
  • ADA – $55,000
  • GLB Act – $100,000


Violations also damage a company’s reputation in the eyes of the public. This leads to further revenue complications.


Experts advise that by implementing energy efficient practices, a company can get ahead of the competition. Energy efficiency not only improves an automotive dealership’s bottom line, it can eliminate many of the costly fines due to regulations violations.


If you are willing to take steps to improve your Auto Dealership facility, contact Contemporary Energy Solutions for a FREE energy audit, valued at $2,000.


Call 800-893-2388 or Click here for more information.


19 Laws, rules, and regulations that can cost you more than money, Auto Dealer

The impact of federal regulations on franchised automobile dealerships, NADA, 2014


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