Essential Duties and Responsibilities of a Finance Manager at a Car Dealership

What does a finance manager at a car dealership do?

A finance manager at a car dealership plays a crucial role in the overall operations of the business. They are responsible for managing the financial aspects of the dealership, ensuring that it runs smoothly and profitably. In this article, we will delve into the various duties and responsibilities that a finance manager at a car dealership undertakes.

Financial Planning and Budgeting

One of the primary responsibilities of a finance manager is to create and manage the dealership’s financial plan and budget. This involves analyzing historical data, market trends, and future projections to forecast the dealership’s revenue and expenses. By doing so, the finance manager can identify areas where costs can be reduced or revenue can be increased, ultimately contributing to the dealership’s financial health.

Vehicle Financing and Leasing

A significant aspect of a finance manager’s role is to oversee the financing and leasing of vehicles. This includes negotiating with financial institutions to secure favorable interest rates and terms for customers. The finance manager also ensures that the dealership complies with all relevant financial regulations and standards, such as the Truth in Lending Act and the Equal Credit Opportunity Act.

Customer Service

In addition to managing the financial side of the business, a finance manager at a car dealership must also prioritize customer service. They work closely with sales teams to provide customers with financing options that suit their needs and budgets. By offering personalized advice and support, the finance manager helps customers make informed decisions and fosters a positive relationship between the dealership and its clients.

Accounting and Reporting

Maintaining accurate financial records and reporting is another critical duty of a finance manager. They are responsible for preparing financial statements, such as balance sheets, income statements, and cash flow statements, to track the dealership’s performance. This information is crucial for making strategic decisions, identifying areas of improvement, and ensuring compliance with financial regulations.

Vendor Relationships

A finance manager also manages the dealership’s relationships with vendors, such as financing companies, insurance providers, and parts suppliers. They negotiate contracts, review invoices, and ensure that vendors meet the dealership’s financial requirements. By maintaining strong vendor relationships, the finance manager helps to ensure a steady supply of vehicles, parts, and services for the dealership.

Regulatory Compliance

As mentioned earlier, a finance manager must ensure that the dealership complies with all relevant financial regulations and standards. This includes staying up-to-date with changes in laws and regulations, implementing necessary policies and procedures, and conducting audits to ensure compliance.

Conclusion

In conclusion, a finance manager at a car dealership plays a multifaceted role that encompasses financial planning, customer service, accounting, and regulatory compliance. By effectively managing these aspects, a finance manager contributes to the dealership’s success and helps ensure its financial stability and growth.