Dealerships don't wait until month-end financial statements to understand how the business is performing. They rely on dashboards and key performance indicators (KPIs) to monitor inventory, sales, service, and profitability, allowing managers to identify trends and make informed decisions before small issues become costly problems.
Yet one area often receives far less attention: payment performance.
Understanding how customers pay—and how those payments perform—can uncover opportunities to improve cash flow, reduce payment risk, and control processing costs. The key is knowing which metrics matter. Whether your dealership relies on its DMS, an integrated payment platform, payment providers, or a credit card processor for reporting, reviewing these metrics regularly provides a clearer picture of payment performance.
Here are five payment metrics every dealership should track to improve cash flow.
1. How Customers Choose to Pay
The first question to ask is simple: How are customers paying?
Track the percentage of payments received through:
- Credit cards
- ACH
- Checks
- Cash or other payment methods
Customer payment preferences continue to evolve. Reviewing payment trends helps determine whether your current payment options align with how customers want to pay. It can also identify opportunities to encourage lower-cost payment methods when appropriate.
2. Guaranteed ACH Activity
ACH has become an increasingly popular payment option because it allows customers to pay directly from their bank accounts.
Monitor:
- Number of ACH transactions
- Total ACH payment volume
- ACH payment trends over time
- Month-over-month growth
As adoption increases, these reports can help measure how effectively your dealership is incorporating ACH into its payment process and identify opportunities to increase usage across departments.
3. Guaranteed Check Activity
Checks remain an important payment method for many dealerships, particularly for larger purchases and down payments.
Review:
- Number of guaranteed checks accepted
- Total guaranteed check volume
- Check payment trends over time
Tracking guaranteed check activity helps ensure your dealership continues to offer customers payment flexibility while minimizing the risk associated with accepting personal checks.
4. Returned Payment Trends
Returned payments can slow cash flow, create additional administrative work, and delay funding.
Rather than focusing on individual transactions, monitor trends over time.
Ask questions such as:
- Are returned payments increasing or decreasing?
- Are certain payment types producing more returns?
- Have recent process changes improved payment performance?
Identifying patterns early allows dealerships to address potential issues before they become larger operational concerns.
5. Credit Card Processing Costs
While your payment guarantee provider may not have access to your credit card data, your payment processor can provide detailed reporting on card activity.
Review metrics such as:
- Total card volume
- Processing fees
- Average transaction amount
- Chargebacks, if applicable
Comparing these reports alongside ACH and guaranteed check activity provides a more complete picture of your dealership's payment operations. As payment preferences shift, dealerships can better evaluate where processing costs are increasing and where alternative payment methods may help manage expenses.
Bringing the Data Together
Every payment tells part of your dealership's financial story. Reviewing payment metrics regularly helps identify trends, spot opportunities, and make informed operational decisions before small issues become expensive ones.
Whether your dealership reviews reports through its DMS, an integrated payment platform, payment providers, or a credit card processor, looking at these metrics together provides a more complete view of payment performance. With better visibility into how customers pay, dealerships can improve cash flow, reduce payment risk, manage processing costs, and make smarter decisions that support long-term profitability.
From guaranteed ACH and guaranteed checks to credit card payments, every transaction contributes valuable insight. The dealerships that monitor payment performance alongside other operational KPIs are better positioned to strengthen financial performance and support long-term growth.
Ready to maximize your dealership's cash flow and take the risk out of customer payments? Contact Cross-Check today to find the right payment solutions for your business.