How to Prepare for a Dealership Facility Audit and What Auditors Actually Check
A dealership facility audit is an OEM-conducted inspection of your entire dealership against the manufacturer’s current facility standards. These audits evaluate your showroom, customer areas, signage, and — most critically for our purposes — your service department equipment, configuration, and operational readiness. A poor audit score affects your vehicle allocation, incentive eligibility, and standing with the manufacturer. A good score confirms that your facility meets the standard the OEM expects from its franchise network.
We are Auto Lift Services, and we provide pre-audit equipment assessments for dealership service departments. We have completed 5,786 lift inspections across our service territory, and we know exactly what OEM auditors flag because we see the same equipment conditions they do. We work with general contracting partners including our partner construction companies to deliver complete dealership construction and renovation projects with a 2-year warranty on the building and all equipment.
This article breaks down what happens during a dealership facility audit, what auditors look for in the service department, and how to prepare so there are no surprises.
What Triggers an OEM Facility Audit
OEM audits are not random. They follow a cycle and are triggered by specific events.
Scheduled cycle audits. Most OEMs audit every franchise location on a regular cycle — typically every one to three years. These are planned, and dealers receive advance notice. The cadence varies by brand and by the dealer’s compliance history. Dealers who scored well on their last audit may be audited less frequently. Dealers with open findings are audited more often.
Post-construction audits. When a dealer completes new construction or a major renovation, the OEM sends an auditor to verify that the completed facility matches the approved plans and meets current standards. This is particularly important for dealers who built to meet image program requirements — the OEM wants to confirm that the investment was made correctly before restoring full compliance status.
Franchise transfer audits. When a dealership changes ownership, the OEM audits the facility as part of the buy-sell approval process. The incoming owner needs to understand the facility’s compliance status because any deficiencies become their responsibility.
Triggered audits. Customer complaints about facility conditions, repeated warranty process issues, or reports from zone managers can trigger an unscheduled audit. These are less common but more serious because they suggest a problem the OEM feels needs immediate evaluation.
The Audit Process Step by Step
A typical dealership facility audit follows a structured process that takes most of a day.
The auditor arrives with a scoring template specific to the manufacturer’s current facility standards. This template covers dozens of line items organized by facility area: exterior, showroom, customer lounge, service write-up, service department, parts department, and administrative areas. Each line item is scored, and the scores roll up into an overall facility grade.
The auditor walks the entire facility with the dealer principal or general manager. They photograph specific elements — equipment labels, signage, bay configurations, customer areas. They check documentation: lift inspection records, equipment calibration dates, safety compliance records. They note both positive elements and deficiencies.
After the physical inspection, the auditor typically conducts a debrief with dealership management. They outline preliminary findings, identify any critical deficiencies that require immediate action, and explain the timeline for submitting the formal report. The formal audit report arrives within a few weeks and includes a detailed scoring breakdown, photographs of findings, and required corrective actions with deadlines.
Service Department Items Auditors Check
The service department is where the most consequential findings tend to occur because equipment compliance is binary — it either meets the standard or it does not. Here is what auditors evaluate.
Lift certification and inspection. Every lift in the service department should be ALI-certified and must have a current annual inspection label. Auditors check the label on each lift for the inspection date, the inspector’s credentials, and the inspection company. An expired label is an automatic finding. A lift with no label at all is a critical finding. We perform annual inspections on every lift type — two-post, four-post, inground, scissor, and specialty — and our inspection labels include all the information auditors look for.
Lift capacity and condition. Auditors verify that lift capacity matches the vehicle types the dealer services. A dealer servicing full-size trucks on lifts rated for passenger cars only will be flagged. They also check lift condition: visible damage, worn cables or chains, hydraulic leaks, and safety lock engagement. An audit finding on lift condition can require immediate removal from service until repairs are completed.
Alignment equipment. Auditors check that the alignment system is current-generation, calibrated, and approved for the OEM’s vehicle lineup. Hunter alignment systems — HawkEye Elite and the current platform — satisfy this requirement across virtually every OEM program. Outdated alignment equipment that cannot perform the latest OEM-specified alignment procedures is flagged. (See also: dealership alignment bay.)
ADAS calibration capability. This is the newest and fastest-growing category on the audit checklist. Auditors check whether the dealer has in-house ADAS calibration equipment, whether it covers the OEM’s current vehicle lineup, and whether the calibration bay meets physical requirements: flat floor, controlled lighting, adequate clear space. Dealers who sublet all ADAS calibration work are increasingly receiving findings in this category.
Tire and wheel equipment. Tire changers and wheel balancers are evaluated for condition, capability, and compliance. Equipment must handle the current tire and wheel specifications for the dealer’s vehicle lineup. Low-profile tire capability and TPMS sensor handling are specific items auditors note. Hunter and Rotary tire and wheel equipment meets the standard across OEM programs.
AC service equipment. Auditors verify that the dealer has equipment capable of servicing both R-134a and R-1234yf refrigerants. RobinAir, Mahle, and Rotary AC machines meet this dual-capability requirement. Equipment that handles only R-134a is flagged because the entire new vehicle fleet uses R-1234yf.
Brake service equipment. On-car brake lathes that meet the OEM’s specification for rotor and drum resurfacing. Hunter brake lathes are the industry standard and appear in most OEM approved equipment catalogs.
Exhaust extraction. Every service bay must have a functional exhaust extraction system. Auditors check that hoses are connected, that the system is operational, and that it meets capacity requirements for the number of bays served. Non-functional exhaust extraction is a safety finding, which carries more weight than a cosmetic finding.
Fluid management. Oil storage, waste oil handling, coolant systems, and transmission fluid management. Auditors look for proper containment, labeling, and condition. Leaking systems, improper storage, or missing containment are flagged.
EV readiness. The newest addition to the OEM audit checklist. Auditors evaluate electrical panel capacity for EV charging and service, dedicated EV service bay availability, high-voltage personal protective equipment, and insulated tool sets. Even dealers with minimal EV sales are being evaluated on baseline readiness. (See also: EV dealership requirements.)
Common Findings and How to Prevent Them
After years of performing lift inspections and service department assessments, we see the same findings repeatedly.
Expired lift inspection labels. This is the most common finding and the easiest to prevent. Schedule annual inspections and do not let them lapse. We schedule recurring inspections for every lift we service so dealers never have a gap.
Non-approved equipment. Equipment that is not listed in the OEM’s approved catalog. This happens most often when dealers buy equipment based on price alone without checking the approved list. Cross-referencing the OEM catalog before purchasing prevents this entirely.
Missing ADAS capability. Dealers who built or last renovated before ADAS calibration became standard are getting flagged. Adding ADAS capability to an existing facility is possible but requires planning — the bay requirements are specific.
Inadequate EV infrastructure. Electrical panels that cannot support Level 2 or Level 3 charging, no dedicated EV service area, or missing high-voltage safety equipment. Electrical panel upgrades from 200A to 400A or higher are becoming a standard part of renovation projects.
Cosmetic deterioration. Stained floors, damaged walls, poor lighting, and general wear that has accumulated since the last renovation. While cosmetic items carry less weight than equipment findings, they contribute to the overall score.
Our Pre-Audit Assessment
We offer a pre-audit equipment assessment that mirrors what the OEM auditor will evaluate. We inspect every lift, check alignment and ADAS equipment status, verify tire and wheel equipment compliance, evaluate AC and brake service equipment, and assess exhaust extraction, fluid management, and EV readiness.
The deliverable is a prioritized findings report that tells you exactly what the auditor will flag and what it will cost to correct each item. This allows you to address critical items before the auditor arrives and plan a timeline for lower-priority improvements.
For dealers planning new construction or a major renovation, the pre-audit assessment becomes the equipment specification document. Every item we identify feeds directly into the project scope. We then specify, procure, and install the equipment as part of the construction project with our general contracting partners, all covered under our 2-year warranty on the building and equipment.
The Audit Is Not the Enemy
Dealers sometimes treat the dealership facility audit as an adversarial process. It is not. The audit is a structured evaluation that tells you where you stand against a known standard. The standard is published. The checklist is predictable. The findings are correctable.
The dealers who struggle with audits are the ones who are surprised by findings — they did not know their lifts were out of inspection, did not realize their alignment system was no longer on the approved list, or did not anticipate the ADAS calibration requirement. The dealers who pass easily are the ones who track their equipment status continuously and address issues as they arise.
If you have an audit coming up and you are not sure where your service department stands, contact us. We will tell you what the auditor is going to find, and we will give you a plan to fix it before they arrive.
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Josiah Ragsdale
Founder, Automotive Lift Services
Josiah has been installing, repairing, and inspecting automotive lifts since he was 18 years old. He founded Automotive Lift Services in 2019 after years of seeing lifts installed wrong, never inspected, and putting technicians at risk. His team now services all 50 states from their Iowa headquarters. Read more
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