In today’s digital landscape, data security is essential to running a successful car dealership. Dealer management systems (DMS) and other business-critical technology depend on secure, high-quality data to function effectively.
A structured approach to data security helps ensure compliance, reliability, and protection against cyber threats. One key consideration in this approach is choosing data sources carefully and prioritising contractual data partnerships over the less reliable and legally uncertain practice of data scraping.
Companies have faced significant fines due to data scraping activities. The most notable case involves Clearview AI, which was fined €30.5 million by the Dutch Data Protection Authority (AP) for serious violations of the GDPR.
Car dealerships rely on accurate and real-time data, from vehicle valuations to customer insights. Data obtained through contractual agreements with reputable providers offers several advantages over scraped data. Contractual partnerships ensure data is acquired with proper authorisation, reducing the risk of violating data protection laws such as the UK General Data Protection Regulation (GDPR).
Scraped data, by contrast, may be collected in breach of website terms of service or even data privacy laws, exposing dealerships to potential legal consequences. Data obtained through partnerships is also more likely to be structured, accurate, and regularly updated. Scraped data, however, may be outdated, incomplete, or incorrectly formatted, leading to errors in business operations.
Secure data partnerships often involve application programming interfaces (APIs), which regulate access, monitor activity, and log usage. This level of oversight enhances security and ensures data integrity. Furthermore, data providers operating under legal contracts disclose the terms of data usage, ensuring transparency and compliance with customer consent requirements.
Another significant risk of relying on scraped data is that it may come from unverified or even
compromised sources, increasing the likelihood of integrating malicious, stolen, or exposed personal information into dealership systems.
Ethical data practices demand accountability, and using scraped data often involves methods that may violate privacy, harm websites, and damage business reputations. When data is acquired through contractual agreements, clear responsibilities and liabilities are established, offering legal recourse in case of misuse or breaches. Additionally, secured data obtained through partnerships is more likely to meet industry regulations and best practices, ensuring dealerships comply with evolving data protection laws.
The team at Solera cap hpi has invested to build relationships across industry and along the vehicle lifecycle to ensure partnerships are in place that will help dealers minimise risk and increase efficiency. The work continues with recent additions of multi-source salvage data to enhance provenance checks and a partnership with EMaC to validate vehicle mileages.
According to IBM, the cost of data breaches to UK industry in 2024 was significant and varied depending on the size and sector of the organisations affected. For UK businesses overall, the average cost of a data breach reached £3.58 million in 2024.
Dealers must adopt robust security measures to protect their systems and customer information. Multi-factor authentication (MFA) adds an extra layer of security beyond passwords and helps prevent unauthorised access. Encrypting customer data, when transmitted and stored, protects against cyber threats and unauthorised access. Regular software updates are also essential to closing security vulnerabilities and preventing cybercriminals from exploiting them.
Employee awareness and training play an important role in reducing security risks. Staff should be trained to recognise phishing scams, social engineering tactics, and best practices for handling data securely. Reviewing data collection, storage, and deletion practices is equally important to ensure compliance with UK data protection laws. Customer data should be securely deleted when no longer required or requested by the customer.
A dealership’s data security is only as strong as its weakest link. When selecting a technology
provider, dealers should ensure that the provider offers robust security measures such as
encryption, firewalls, backups, and antivirus protection. To minimise risks, verifying the provider’s reputation and track record is also advisable. Cloud-based solutions can offer enhanced security features and real-time backups to safeguard data against loss or unauthorised access.
Dealerships must also stay informed about UK data protection regulations, particularly GDPR.
Establishing procedures for reporting data breaches is essential, as the Information Commissioner’s Office (ICO) requires breaches to be reported within 72 hours. Regular security assessments help identify vulnerabilities and prevent potential cyberattacks. Working with cybersecurity specialists to conduct penetration testing can further strengthen overall security measures.
Opting for structured data partnerships ensures compliance, reliability, and ethical integrity while
reducing legal and security risks. With strong internal security measures, employee training, and adherence to GDPR, dealerships can protect the valuable data that underpins their business.
A robust and planned approach to data security helps improve operational efficiency, build customer trust, and safeguard dealerships against cyber threats in an increasingly data-driven industry.
Chris Wright is the vice president of Solera North Europe and heads up Solera cap hpi
