Outsourcing Tagwork

[helpers1]

We are set to have a demo next week from a company who handles outsourcing tagwork -- I'd be interested in hearing from another dealer who has experience with this, and how the process works at your store.

[jazdale]

whats tagwork?

[fburrows]

Make sure that you will be writing the checks to the DMV not the title service. We had a long time local service go belly up with a ton of tag and taxes collected from dealership customers. If you write the checks to the DMV you have recourse if things go wrong. Also spend an hour checking references.

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Frank Burrows
fburrows@absdata.com

[fburrows]

Jazdale:

Tag work is short for Tag and Title services. Processing the customers license tags, registration and title with the state. This also includes submitting the state taxes collected from the customer. It requires a specialist. You can train someone, hire an experienced person or sublet it.


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Frank Burrows
fburrows@absdata.com

[This message has been edited by fburrows (edited 05-04-2006).]

[texaslp]

I've worked with an outside company before and it worked well, but it depends on your reasons for doing this. It did not reduce my staff at all. We still had to prepare everything as usual.

The main benefits were:1.) faster processing than the DMV and 2) fewer rejects, they would call and fix things for us as well as billing us for shortages

We paid them a "title convenience" fee and we were able to pass this on to the consumer.

[jazdale]

Tags = license registration. got it.

I know this is a slightly different process in each state.
Wouldn't CVR (computerized vehicle registration) eliminate the need for a runner?

I think about 20 states have CVR right now.

[texaslp]

I called CVR for more info on how it works
and they didn't express much interest in my business. They faxed me some info but when I called and left a message that I had some questions, they never called me back.

I didn't really see the advantages of it.

[jazdale]

Since they never called you back, I can see why you didn't see any advantages!!

The intent (at least in Michigan) is for the dealer to have an inventory of plates (tags) and electronically submit the registration to the DMV.

As soon as you sell the car, you can tag it. So nobody needs to run to the DMV, and the customer does not need to come back to pick up her/his plates.

Typically, you can charge for the service and make a little on a per transaction basis.

What I don't know at this time, is whether you live in a CVR state.

[texaslp]

We are a CVR state(TX) but from the little bit of information they sent me it didn't look like we would be issuing the plates. We used to have that capability but they changed the way stickers are printed so they took that away from us.

[helpers1]

ok - i get it....The outsourced company takes the place of the work done at the DMV. We still handle everything here the same. I believe our owners have been led to believe it will reduce the amount of staff needed at the dealership to process. We had the same thing happen when we went on CVR -- they thought we were going to be able to reduce staffing. It's just not the case--it reduces the staffing needed at the DMV!