CDK Global

In a recent study focused on the car buyer journey*, CDK uncovered that dealership Sales staff are extremely good at delivering two things that are critical to closing sales: test drives and assessing what a customer truly needs.

While many car shoppers come into the showroom with a general idea of the kind of vehicle they think they want, they often want their purchase considerations confirmed by expert dealership personnel. And, it turns out, car dealerships are delivering: 94% of customers reported that dealership staff spent time assessing their vehicle needs.

A surprisingly large number of U.S. auto dealers say their Sales staff aren't enthusiastic about selling EVs, according to the recent CDK Dealers Face the EV Transition white paper. A total of 250 dealership leaders in regions across all 50 states took part, and a startling 49% said their Sales teams weren’t excited at all about selling EVs. The differences between regions were also clear.

From supply chain issues and volatile interest rates to staffing woes and inflation, 2023 was a year rife with perpetual heartburn for most of the auto industry. CDK reached out to dealers for their take on the year while they were right in the thick of sales and service in 2024.

Electric vehicles make up a small percentage of the auto market today, and their adoption has had its ups and downs. But their appeal continues to grow as new models with lower price points, greater range and a variety of body styles roll off factory floors. And, those drivers who already made the leap won’t be going back to gas anytime soon.

Whether you consider summer starting on Memorial Day, the last day of school, or the official start on June 20, it starts at dealerships much sooner. Millions of families are planning their vacations, and according to experts at The Vacationer, nearly 80% of people say they’re planning a road trip this summer. Memorial Day road travel was the busiest in 20 years according to AAA.

The automotive retail industry is known for long-held stereotypes about its workers and roles. To say it’s a misunderstood industry is an understatement at best. Nearly 2 million people were employed in the motor vehicle industry over the last 18 years, contributing to this multitrillion-dollar sector’s success, and dealerships are a big part of it.

The all-American pastime of the summer road trip is alive and well. The Transportation Department reported travel rose to over 3 trillion miles in 2023, setting a new yearly record and topping pre-pandemic levels for the first time. All predictions point to 2024 beating that already sky-high number.

As the electric vehicle revolution propels forward, dealers across the country are coming to terms with learning, selling and servicing a new class of vehicles that many consumers have never driven and show little interest in.

CDK has covered the state of the EV landscape from the EV shopper, the ownership experience and the impact on dealership service in three studies over the past year.

Nothing can steer your auto dealership off course faster than poor accounting practices. And it’s not just about the importance of accurate numbers to chart a course to survival and success.

It’s harder than ever to find qualified hires capable of handling today’s accounting software and reporting requirements. Then there’s the growing complexity of managing costs, accounts payable, accounts receivable, P&Ls and balance sheets.

When you spend your days servicing and repairing vehicles, it’s easy to forget that most people know very little about the cars they rely on to get them where they need to go every day. No wonder there’s a lot of confusion — and often suspicion — when a customer in for an oil change is presented with a list of additional recommended services. The customer is certainly going to demand an explanation, and that’s where many franchised Service departments are falling behind.