CDK Global

Winter is a unique time to sell cars, especially in cold climates. This year promises to be an even more interesting time for dealers to move electrified metal. The existing EV incentives on both new and used cars may not continue indefinitely with a new administration coming to Washington, D.C., in January. And many shoppers may still remember one sensational story about EVs being stranded in a Chicago cold snap last winter.

With the U.S. unemployment rate hovering just over 4%, auto dealership recruiting and retention are daunting challenges facing dealers of all sizes.

The need to replace 76,000 qualified Technicians annually to Service bays nationwide is well-known, it's hard to find and retain good Front Office staff, too, especially for the Sales department.

AI in the automotive industry is no longer a trend. Dealerships are experiencing gains across their operations thanks to technologies including AI, machine learning (ML) and natural language processing (NLP). With 68% of dealerships reporting that AI has positively impacted their operations, it’s no wonder dealers are seeing success and improvements across their stores.

There’s nothing wrong if a dealership wants a little promotion after they’ve made a sale. However, car owners often have strong opinions on stores affixing a sticker, decal or badge to their new ride. License plate frames are easy to remove so there’s usually no argument to be had and often, they’re left on a car long after it leaves the lot.

Personalized license plate frames cost dealers only a few bucks each, but that money goes to waste if customers don’t keep frames attached to vehicles.

Let’s look at how your dealership can rethink this critical branding element.

Whether it’s at the dentist’s office, the airport or a car dealership’s Service department, nobody enjoys being sequestered in a waiting room. But if you go the extra mile — or even the extra one-tenth of a mile — and provide your customers with a comfortable place to wait for service, it can help make them happy, loyal customers. And it won’t cost you much.

Fixed Operations continues to be a major profit center for car dealerships. And the competition from independent repair facilities and car chains remains … but in terms of driving positive sentiment, dealers are gaining ground according to the CDK Service Shopper 4.0 study.

Data is at the heart of everything today, and car dealerships are no exception. Whether it's understanding customer preferences, managing inventory or figuring out the best strategies for sales, effective data can make all the difference. Here are four areas that highlight how data can transform dealerships and why it’s so important for success.

A Service Advisor’s role in a dealership is crucial. They consult with the customer and explain the findings about their car’s maintenance and repair options plus act as the liaison between the Technicians and the customer.

Hiring and retaining talent is one of the most challenging tasks for dealerships. While a career in automotive offers a lot of perks, like high-earning potential, the downsides of long hours and high-pressure sales environments can dissuade job-seekers. So, what can dealerships do to draw in talent?

CDK wanted to find out. In our recent workplace study, we asked 400 current and former dealership employees about different aspects of their jobs. What we learned may surprise you.

Haggling, at least for the average consumer, may reach its zenith in the car-shopping process. However, that doesn't mean that the stereotypical image of a car shopper doing battle with a dealership’s entire Front Office actually holds true.

In fact, the opposite may be the case. In a recent study by CDK of over 1,000 car buyers*, we learned that nearly 85% of them reported spending less than half an hour negotiating the overall price or their monthly payments. That’s it: just 30 minutes or less — about the amount of time it takes to get through a TV sitcom.