Blog
November 27, 2025

Why Choosing a SOC 2 Certified Dealer Management System is Non-Negotiable for Equipment Dealerships

In an industry where margins are tight, inventory is expensive, and downtime kills deals, your Dealer Management System (DMS) is the operational backbone of your business. But here’s the hard truth: if your DMS isn’t secure, your entire dealership is at risk.

This is where SOC 2 certification comes in.

What is SOC 2, and why should you care?

SOC 2 (System and Organization Controls 2) is a rigorous, third-party auditing standard developed by the American Institute of CPAs (AICPA). It evaluates how well a service provider safeguards customer data, based on five key trust service principles:
  • Security
  • Availability
  • Processing Integrity
  • Confidentiality
  • Privacy
In plain English: A DMS provider with SOC 2 certification has proven it takes data protection seriously—and has the systems, controls, and audits in place to back it up.

Why this matters to equipment dealerships 

Equipment dealerships deal with high-value transactions, sensitive customer data, financing details, and proprietary inventory information. You can’t afford breaches, downtime, or compliance gaps.

Here’s why SOC 2 certification should be a deal-breaker when choosing your next DMS:

1. Your Data is a Target

If you’re storing:
  • Multiple disconnected systems causing inefficiencies
  • Outdated, unstable VPN-based software slowing productivity
  • High staff turnover and team members resistant to change
  • A need for an intuitive, easy-to-learn system
  • Inefficient rental workflows and parts processes
  • Lack of real-time visibility across the dealership
…then your DMS is a goldmine for cybercriminals. A SOC 2 certified DMS helps ensure there are real protections in place: encrypted data, access controls, intrusion detection, and regular audits.

43% of cyberattacks target small to mid-sized businesses, and the average cost of a data breach in 2024 was over $4 million (IBM). Can your dealership survive that?

2. Downtime Destroys Revenue

If your DMS goes down, your dealership grinds to a halt. Sales? Stalled. Service orders? Frozen. Parts inventory? In the dark.

SOC 2 certification includes evaluation of availability and disaster recovery protocols—meaning certified vendors have tested plans for uptime, redundancy, and business continuity.

You want a DMS vendor that plans for the worst, not one that reacts to it.

3. Compliance Isn’t Optional Anymore

Privacy laws like GDPR, CCPA, and PIPEDA are no longer just for tech companies. If your dealership collects and stores personal data—even unintentionally—you’re on the hook.

A SOC 2 certified DMS provider already has the frameworks in place to help you stay compliant, reduce liability, and avoid fines.

4. You Need to Trust Your Vendor—With Everything

When you choose a DMS, you’re not just buying software—you’re trusting a third party with the digital core of your operations. A SOC 2 audit proves that your vendor is not just talking the talk. They’ve invested in internal controls, staff training, continuous monitoring, and third-party verification.

In a market flooded with flashy features, SOC 2 separates the responsible providers from the risky ones.

5. Security is Now a Competitive Advantage

Dealerships that prioritize security don’t just protect themselves—they earn more trust from OEM partners, fleet customers, and financing institutions. A secure, compliant operation is a stronger operation.

Choosing a SOC 2 certified DMS is a strategic move—not just an IT decision.

Red flags: what to watch out for

If a DMS provider isn’t SOC 2 certified, ask why. Common red flags:
  • “We’re working on it” (Translation: they aren’t)
  • “We have internal security policies” (Not the same as third-party validation)
  • “It’s too expensive” (So is a breach)
Don’t let cost-cutting or promises of “fast implementation” distract you from what really matters: protecting your business.

Final word

Your DMS touches every part of your dealership—from sales and service to accounting and inventory. Choosing one without SOC 2 certification is like buying a million-dollar excavator with no brakes.

If a DMS provider hasn’t earned your trust with proven, audited data protections, they haven’t earned your business.

Bottom line: Go with a SOC 2 certified DMS. Your data, your uptime, your reputation—and your bottom line—depend on it.

Ready to reduce downtime, streamline operations, and equip your dealership with a modern, future-ready dealership management system?

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HBS Systems is very easy to use and easy to get around in. The custom financials make it easy to look at all 13 locations on one consolidated screen, and if needed, I can look at each location for further analysis.

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Matt Anders
Baker Implement Co.

The advancements I’ve seen in just the 1st year at HBS Systems are more than our previous provider did in a 30-year period. Customer support has been really responsive and helpful. I couldn’t be more pleased with my choice to switch to HBS Systems.

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Sage Prigozen
Bobcat of New York & Long Island

I’d recommend HBS Systems to any equipment dealer; it’s a great system that saves time, decreases errors, and allows our team to improve upon customer service by providing real-time information within the software.

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Clifton Bradshaw
Nueces Power Equipment

HBS Systems worked with me to get everything set up in a way that works best for us with new hardware. They even sourced and ordered parts that are unusual for us. Any dealer looking for a DMS should call HBS Systems.

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Maria Sauceda
All Seasons Farm Equipment, Inc.

We were impressed with HBS Systems when we made a request specific to our dealership. Their team expedited the programming process to upload a short-notice store addition into the business system. I’d recommend to any dealership to take take a look at HBS Systems.

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William Vandelinde
Marshall Machinery, Inc.
HBS Systems delivers dealership management solutions built for agricultural, construction, rental, and specialty-equipment dealerships. For more than 40 years, the company has helped top-performing dealership groups across North America unify operations and improve profitability through NetView ÉCO, a secure, scalable, web-based platform that connects every department and every location.

As the largest privately owned DMS provider, HBS Systems combines enterprise-grade technology with personal, partner-first support. Dealerships gain real-time visibility, seamless OEM integrations, continuous innovation, and dedicated onboarding and training designed to strengthen performance across the entire organization. With SOC -2 Type II certification, 24/7 protection, and access to dedicated virtual data centers, HBS Systems gives dealers the confidence to grow without compromise.

To learn more about HBS Systems and its dealership management solutions, visit hbssystems.com.