March 31, 2025

Preparing for Tariff Shockwaves in Automotive Retail

Why Dealerships Need TTMS to Stay Efficient and Compliant as Trade Policies Shift

By Jae S. Jung

With President Donald Trump's new tariffs on imported vehicles and auto parts taking effect on April 3, 2025 the automotive industry is facing immediate operational and financial disruption. These tariffs will increase costs, reduce inventory flexibility, and apply downward pressure on dealership profit margins.

While many dealerships are preparing for the economic and sourcing impacts, post-delivery operations remain an overlooked vulnerability. Systems like the Tag & Title Management System (TTMS) offer a critical advantage—streamlining workflows, reducing compliance risk, and cutting unnecessary costs at a time when every dollar matters.

The Challenge: Tariffs Are Shrinking Margins—Starting Now

As of April 3, 2025, higher tariffs are in effect for imported vehicles and parts. Dealerships can expect:

  • Higher vehicle prices, particularly on popular imported models
  • Reduced consumer demand due to elevated sticker prices
  • Tighter profit margins per vehicle sold
  • Supply chain delays for essential auto parts

Most strategies focus on pricing adjustments and sourcing workarounds, but these alone won’t preserve profitability. Dealerships must look inward and optimize operations—especially in post-delivery processing.

The Hidden Risk: Disorganized Post-Delivery Operations

Post-sale workflows often go unmanaged in traditional DMS systems. The result? Missed tasks, regulatory risk, and operational inefficiencies that drain margins. Common issues include:

  • Bank contracts not funded
  • Expired or expiring temporary tags
  • Missing or invalid proof of insurance
  • Title/SIF due from banks or customers
  • Rebate or incentive coordination delays
  • Safety inspection documentation issues
  • Absorbed shipping fees for tags
  • These internal challenges add up—and in a tighter economy

Most strategies focus on pricing adjustments and sourcing workarounds, but these alone won’t preserve profitability. Dealerships must look inward and optimize operations—especially in post-delivery processing.

The Solution: TTMS as an Operational Advantage in a Post-Tariff Economy

TTMS (Tag & Title Management System) is a web-based platform that helps dealerships resolve post-sale issues quickly and efficiently, while ensuring compliance and cost control.

TTMS Helps Dealerships:

  • Centralize post-sale task tracking
  • Ensure regulatory compliance for insurance, title, and inspections
  • Notify customers in real time via text or email
  • Let customers pay for tag shipping online—saving the dealership thousands
  • View performance dashboards to identify bottlenecks and hold departments accountable
  • Coordinate across departments (sales, accounting, finance, tag admin)

Conclusion

With tariffs now in effect, dealerships must modernize how they operate—not just what they sell. TTMS helps eliminate internal inefficiencies, reduce compliance risk, and protect profit margins right now, while positioning dealerships to operate leaner and smarter in the months ahead.

For dealerships facing today's economic pressure, TTMS is no longer a nice-to-have—it's a necessity.

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