Dealerships have contracts with various third-party service providers. NJ CAR encourages dealers to review any contracts they have and note whether or not they contain an auto-renewal clause. Some contracts contain clauses that state the contract will automatically renew unless written notice is given 30, 60 or 90 days prior to expiration.
It is in the dealer’s best interest to keep a record of their contract renewal requirements. If a dealership is looking to change DMS providers, electric providers or any other third-party service, they will want to research their options ahead of time. This will allow the dealer a chance to make a decision on whether to cancel an existing service before it automatically renews for another term.