Dealerships need reliable IT support to keep their DMS systems running, protect customer data, and stay compliant with regulations. Your dealership can choose among three models: managed IT, co-managed IT, or in-house IT, with each suited to different dealership sizes and budgets.
Your dealership's technology keeps sales moving and customers happy. When your dealer management system (DMS) or inventory systems fail, service appointments get delayed, and revenue stops. Your DMS handles key operations, such as vehicle inventory, service scheduling, and sales tracking.
Every dealership needs reliable IT support, but choosing the right model isn't always clear. You have three options: hire your own IT team, partner with experts, or split the work. Each affects costs, security, and response time.
In this article, we've invited Ed Griffin, Security & GRC Executive at ITS, to share his insights on choosing the right IT model for automotive dealerships.
You'll learn:
- What does managed IT mean for dealerships?
- How does co-managed IT work for automotive businesses?
- When does in-house IT make sense for your dealership?
What Does Managed IT Mean for Dealerships?
Managed IT means outsourcing your IT department to a managed service provider (MSP). An MSP can handle day-to-day support and cybersecurity under a defined service agreement, typically billed monthly (often per user or device).
For dealerships, managed IT means experts handle your DMS, service network, and compliance needs, ideally with 24/7 monitoring and predictable monthly costs.
If you arrange financing or leases, you likely fall under the FTC Safeguards Rule and need documented security controls and an incident response plan. An automotive-focused MSP can help you meet those requirements.
Ed explains, "Dealerships need IT partners who understand their systems and compliance obligations. When your DMS goes down on a busy Saturday, you need instant expertise with Reynolds, CDK, or Tekion, plus someone who knows the security rules you must follow."
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Who's a Good Fit? |
Who's NOT a Good Fit? |
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When Managed IT Makes Sense
- Your IT leader quits or lacks expertise: Managed IT provides immediate coverage without hiring delays.
- You acquire more dealerships: Managed IT covers all locations without the need to hire multiple technicians.
- You don’t want to manage IT: Your MSP handles day-to-day IT and security, so you can focus on selling cars.
Example: A three-location dealership group has no IT staff. The owner needs reliable DMS uptime, FTC Safeguards support, and predictable monthly costs without hiring and managing an internal team. Managed IT provides full IT ownership.
Read: The Ultimate Guide to Managed IT for Automotive Businesses
How Does Co-Managed IT Work for Automotive Businesses?
Co-managed IT pairs your in-house IT staff with an MSP. Your technician handles daily support, while the MSP brings after-hours coverage, advanced security tools, and expert help for complex issues.
"Many dealerships have one IT person who knows everything and has to travel between multiple locations," says Ed. "Co-managed IT protects you if they get sick, take a vacation, or leave. And extra expertise when you need it."
Depending on what your internal team covers, co-managed IT can be more cost-effective than fully managed IT.
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Who's a Good Fit? |
Who's NOT a Good Fit? |
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When Co-Managed IT Makes Sense
- Your IT person is overloaded: They support 50 employees and work too many extra hours. Co-managed IT adds backup without replacing your trusted employee.
- You need stronger security: Your technician excels at hardware but lacks cybersecurity expertise. Co-managed IT fills this gap by bringing in specialists.
- You need time-off coverage: When your tech is out, issues pile up. Co-managed IT keeps support going, including after hours.
Example: A dealership has one IT technician who handles daily support but lacks cybersecurity expertise and has no coverage during vacations. The dealership wants after-hours monitoring and specialist support without replacing their trusted tech. Co-managed IT gives them both.
In-house IT means you hire your own IT team. They usually work on-site and report to dealership leaders. This gives you technicians who know your DMS setup and manufacturer requirements, so they can fix problems fast and support custom needs.
With in-house IT, you’ll have a staff with deep system knowledge and direct control over your systems, security decisions, and day-to-day IT priorities.
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Who's a Good Fit? |
Who's NOT a Good Fit? |
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When In-House IT Makes Sense
- You’re a large dealership group: You run five dealerships with 200+ employees and can afford IT staff covering multiple shifts and a 24/7 security team at each location.
- You use custom systems: You have built specialized tools beyond your DMS that need daily upkeep.
- You want full control: You want IT decisions made in-house by a team that reports to you.
Example: A five-location dealer group runs custom inventory tools tied to its DMS. They can fund on-site IT at each store and want full control of systems and security. In-house IT fits their need for control and on-site support across all five locations.
Quick Comparison Table
Compare the key differences between each IT model to see which features match your dealership's needs.
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Feature |
Managed IT |
Co-Managed IT |
In-House IT |
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Best For |
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24/7 Support |
Yes |
Yes |
Possible with on-call |
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On-Site Presence |
Remote-first |
Your staff + MSP |
Typically on-site |
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Cybersecurity |
24/7 MDR monitoring & response (by plan) |
24/7 MDR monitoring & response (by plan) |
Depends on staff coverage and tools |
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Cost Structure |
Monthly per-user fee |
Monthly per-user + staff salary |
Salaries + benefits + tools |
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Scalability |
Easy |
Flexible |
Must hire more staff |
*NOTE: The best fit depends on your dealership’s size, number of locations, and compliance needs.
Pros and Cons of each IT Model at a Glance
Each IT model has distinct advantages and trade-offs that affect your dealership operations.
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IT Model |
Pros |
Cons |
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Managed IT |
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Co-Managed IT |
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In-House IT |
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Understanding IT Costs for Your Dealership
Each IT model has a different cost structure. Managed IT and co-managed IT typically charge per user per month with predictable pricing. In-house IT includes salaries, benefits, training, and tools, all of which have variable costs.
The actual price depends on your dealership size, services needed, and complexity. For detailed pricing information and to see what fits your budget, explore our managed IT service plans
How to Choose the Right IT Model for Your Dealership
"The best IT solution matches your size, budget, and growth plans," says Ed. "We listen to your needs, assess your environment, and recommend what fits best. If we can't provide a service directly, we'll partner with the right specialists to make sure you're covered."
Before you decide, ask yourself these questions:
- How many locations do you have? Multi-location groups often need broader coverage than a single store.
- Do you need after-hours support? If systems fail at night or on weekends, you may need help outside business hours.
- Who handles security and compliance today? Make sure you have the expertise and time to meet FTC Safeguards requirements.
- How important is on-site response? Some issues need hands-on help, while others can be fixed remotely.
- Which systems can’t go down? Identify which systems (DMS, service scheduling, VoIP) cannot afford downtime.
- How much downtime can you afford? Estimate revenue loss per hour when systems are down.
- Are you covered by FTC Safeguards? If you arrange financing or leases, you need documented security controls and breach notification procedures.
Download Checklist: Questions Automotive Companies Should Ask Managed IT Providers
Ready to Choose the Right IT for Your Dealership?
Choosing the right IT model keeps your DMS running, protects customer data, and controls costs. Dealerships without in-house IT staff often benefit most from managed IT services. If you have a small IT team, co-managed IT adds backup and support. Larger, multi-location groups may prefer in-house IT when they have the budget to staff full coverage.
To narrow down the best fit, start by calculating your estimated IT costs using our cost calculator. Then, explore our detailed pricing for each IT model to find the option that fits your budget.
If you want a clear next step, schedule a free consultation to assess your current IT setup and identify the best model for your dealership. ITS has helped dealerships nationwide since 2003, and we’re ready to give you a no-obligation recommendation tailored to your needs.
Take the first step toward reliable dealership IT support and contact our team today.
Want to Learn More?
Explore these resources in our Learning Center:
- When is an MSP Worth the Investment? (5 Scenarios)
- How Much Does Managed IT Cost? (5 Price Factors)
- How Much Does Co-managed IT Cost? [Important Price Factors]
Frequently Asked Questions
Q: How quickly can a managed IT provider help if my DMS goes down?
A: Response times depend on your service level agreement and how it defines priority levels for outages. Many dealership-focused providers define DMS outages as a high-severity SLA category with faster escalation and response.
Q: What happens to my IT if I switch from in-house to managed IT?
A: The MSP will document your current setup, maintain your existing systems, and gradually improve them. Over time, they keep what works, fill gaps, and improve systems in line with your plan and priorities.
Q: What should I ask an MSP before choosing managed or co-managed IT?
A: Ask about their automotive DMS experience (Reynolds, CDK), FTC Safeguards compliance support, response time SLAs for outages, and how they handle after-hours emergencies. Request client references from dealerships similar to yours in size and complexity.
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